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Form 100. Personal Income Tax Declaration 2018 Reduction of irregular returns

The net returns on real estate capital will be reduced by 30 percent when any of the following circumstances occur:

  1. When they have a generation period of more than two years

    If the returns are received in fractions, the 30 percent reduction will only be applicable in the event that the quotient resulting from dividing the number of years corresponding to the generation period, computed from date to date, between the number of tax periods of fractionation, is greater than two (art. 15. 2 Rgl.).

  2. When they are legally classified as obtained in a notoriously irregular manner over time.

    The following are exclusively considered income from movable capital obtained in a notoriously irregular manner over time, when they are imputed in a single tax period (art. 15.1 Rgl.):

    • Amounts obtained from the transfer or assignment of the lease contract for business premises.

    • Compensation received from the tenant, subtenant or assignee for damages or defects to the property.

    • Amounts obtained from the constitution or transfer of rights of use or enjoyment of real estate for life.

    IMPORTANT: This reduction will only be applied to the amount of net income that does not exceed 300,000 euros.

Note: Normally the reduction must be recorded without any sign. However, when the reduction affects a negative net return, it will be preceded by a minus sign (-).