12:43 PM · Comments Off on Tenants and landlords in Spain are now eligible for rent subsidies · Categories: Rental properties Marbella

In Spain both the landlord and the tenant are eligible for a number of rent subsidies, on one hand the landlord is required to pay tax on income received from the rental of the property, but there are certain expenses that can be deducted and in addition once the revenue received from the rental have been deducted some allowable expenses may also apply and a series of reductions that in some cases reach up to 100% of net income can be claimed.


Landlords and tenants can now get tax breaks for rental properties

The law provides for a personal income tax deduction on the rent for tenants who do not pass an income limit.

Also each region in Spain applies their own deductions on income tax for tenants, provided that certain age and income requirements are met.

Its very important to note that both deductions can be applied together.

If you are an owner : you have deductions for :

– The interest on loans that are paid for the purchase of housing

– Taxes and state fees that impact on yields or habitation: IBI (Council Tax), fees for cleaning, refuse collection, street lighting and community costs

– The cost of execution of lease and Legal Defense

– Maintenance costs , maintenance and repair ( not including supplies intended for the expansion or improvement of housing ) : painting and other cosmetic fixes, repair or replacement of defective items such as windows, heating and electrical installation equipment

– Contracts of insurance ( liability , fire, theft , glass breakage or other of a similar nature )

– Amounts for services or supplies (electricity, water, gas, telephone etc)

– Expenditure management, lawn care, security, concierge and other services related to the property

– Have costs reduced:

– 100% : if the tenants are aged between 18-30 years and their net income is greater than the public income of (IPREM ) , or if the tenants are between 18-35 years, their net income is greater than the minimum wage and the rental agreement is prior to 01/01/2011

– 60% : in other cases

Applied to this reduction, the tenant must submit to the owner a communication indicating the following information : name, ssn, offices, catastral reference numbers indicating that everything meets requirements

It should be noted that these reductions do not apply to holiday lets, exempt leases, vacation rentals or seasonal tourism. Nor can rentals with catering services be included. These reductions are contemplated for other dwellings rented to students because the period between September and June is considered large enough to dissociate a seasonal lease

If you’re a renter:

– To qualify for deductions:

– State any age : taxpayers whose taxable income does not exceed maximum € 24,107.20, a 10.05% deduction of the amounts paid in rent may be applied, taking into account a maximum which varies based taxable and may be :

– When the taxable amount is equal to or less than 17,707.20 euros per year: 9,040 per year

– When the taxable amount is between 17,707.20 and 24,107.20 euros per year : 9,040 euros less the result of multiplying 1.4125 by the difference between taxable income and 17,707.20 euros per year

– Autonomic age limit : each community has its own deduction and need not exceed a certain age or a volume of income to benefit from it, for example in the Community of Madrid tenants under 35 can deduct 20 % of the amount they have paid for a tax period by leasing your residence up to a maximum of 840 euros. Requirements that apply to this deduction is being less than 35 years of age up to December 31st and the taxable amount for the tax period does not exceed  25,620 euros in individual taxation, or 36,200 euros if it is a joint application that the amounts paid for the rent of the residence exceed 10 % of the taxable income of the period of the tenant, and finally the landlord of the apartment has lodged the security for the rent in the Institute of housing in Madrid ( IVIMA ) and the tenants have a copy of the deposit slip