{"id":9034585,"date":"2023-07-19T07:00:50","date_gmt":"2023-07-19T07:00:50","guid":{"rendered":"https:\/\/www.gremicat.es\/?p=9034585"},"modified":"2023-07-19T08:04:23","modified_gmt":"2023-07-19T08:04:23","slug":"tax-incentives-for-leases-for-residential-purposes","status":"publish","type":"post","link":"https:\/\/www.gremicat.es\/en\/tax-incentives-for-leases-for-residential-purposes\/","title":{"rendered":"Tax incentives for leases for residential purposes"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"9034585\" class=\"elementor elementor-9034585 elementor-9034583\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-bbf6e1d elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"bbf6e1d\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-6cf9cc4\" data-id=\"6cf9cc4\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-ee44886 nuevoH2 elementor-widget elementor-widget-heading\" data-id=\"ee44886\" data-element_type=\"widget\" data-e-type=\"widget\" id=\"nuevoH2\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">A series of new tax incentives applicable to personal income tax on residential property leases.<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-51691fc elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"51691fc\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-4361d28\" data-id=\"4361d28\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-f33fcbc elementor-widget elementor-widget-text-editor\" data-id=\"f33fcbc\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">Law 12\/2023, of May 24, on the right to housing (Housing Law), was published in the Official State Gazette of May 25, which, among other measures, includes a series of tax incentives applicable to personal income tax on the leasing of real estate used for housing.<\/span><\/p><p><b>Modulation of the reductions in the income from real estate capital<\/b><\/p><p><span style=\"font-weight: 400;\">Tax incentives will be provided for the rental of permanent housing at affordable prices, through the modulation of the reduction of the net income from the rental of permanent housing (only for the income from real estate capital but does not affect those who carry out leases that are considered as economic activity under the terms of the Personal Income Tax Law). These new reductions will start to be applied as from January 1, 2024, for leases of real estate for housing <\/span><i><span style=\"font-weight: 400;\">entered into as from May 26, 2023.<\/span><\/i><\/p><p><span style=\"font-weight: 400;\">The Personal Income Tax Law establishes that the positive net yield derived from the leasing of real estate used for housing benefits from a 60% reduction. The housing law now establishes that, for contracts entered into since its entry into force, the general reduction percentage will be 50% (compared to the previous 60%), but it regulates increased percentages.<\/span><\/p><p><span style=\"font-weight: 400;\">Specifically, the new Law provides for the following reductions, which are incompatible with each other, and which are applied in the following order:<\/span><\/p><ul><li style=\"font-weight: 400;\" aria-level=\"1\"><b>Increased reduction of 90%: <\/b><span style=\"font-weight: 400;\">when the same lessor has entered into a new lease contract for a dwelling located in a stressed residential market area (those included in the resolution approved by the Ministry of Transport, Mobility and Urban Agenda in accordance with the provisions of state legislation on housing), in which the initial rent has been reduced by more than 5% in relation to the last rent of the previous lease contract for the same dwelling, after applying, if applicable, the annual update clause of the previous contract.<\/span><\/li><\/ul><ul><li style=\"font-weight: 400;\" aria-level=\"1\"><b>Increased reduction of 70: <\/b><span style=\"font-weight: 400;\">when any of the following circumstances occur:<br \/><br \/><\/span><\/li><\/ul><ol><li><span style=\"font-weight: 400;\"> That the taxpayer had rented the dwelling for the first time, provided that it is located in a stressed residential market area and the lessee is between 18 and 35 years of age. If there are several lessees of the same dwelling, this reduction will be applied proportionally on the part of the net yield that corresponds to the mentioned lessees.<br \/><br \/><\/span><\/li><li><span style=\"font-weight: 400;\"> When the lessee is a Public Administration or non-profit entity, which allocates the dwelling to social rent with a monthly rent lower than that established in the rental aid program of the state housing plan, or to the housing of persons in a situation of economic vulnerability, or when the dwelling is included in a public housing program or qualification by virtue of which the competent Administration establishes a limitation on the rental income.<\/span><\/li><\/ol><ul><li style=\"font-weight: 400;\" aria-level=\"1\"><b>Increased reduction of 60 <\/b><span style=\"font-weight: 400;\">%: for cases in which rehabilitation works have been carried out (in the terms of the IRPF regulations) in the 2 years prior to the conclusion of the lease contract.<br \/><br \/><\/span><\/li><\/ul><p><span style=\"font-weight: 400;\">The requirements must be met at the time of entering the lease contract and the reduction will be applicable for as long as these requirements are met.<\/span><\/p><p><span style=\"font-weight: 400;\">In any case, the increased reduction percentages will not be applicable in relation to lease contracts for housing in areas with a stressed residential market, when the rent agreed at the beginning of the lease contract exceeds the limits established in article 17.6 of the Urban Leases Law (which is modified by the Housing Law itself).<\/span><\/p><p><span style=\"font-weight: 400;\">As up to now, the reductions indicated (the general and the increased reductions) will only be applied on the income declared voluntarily by the taxpayer (i.e., for those that have been calculated by the taxpayer in a self-assessment submitted before a data verification, limited verification or inspection procedure has been initiated that includes in its object the verification of such income).<\/span><\/p><p><span style=\"font-weight: 400;\">In summary, the taxpayer will be able to apply the greater of the reductions that corresponds to him among the indicated ones, always remaining the possibility of applying the reduction of 50%. All these reductions become inapplicable if the rules (foreseen in the LAU) on increase of rents within a stressed residential market area are not complied with.<\/span><\/p><p><b>Transitional regime<\/b><\/p><p><span style=\"font-weight: 400;\">A transitory provision is introduced in the Personal Income Tax Law, the thirty-eighth, to regulate the reduction applicable to positive net income from real estate capital derived from housing lease contracts entered prior to May 26, 2023, at 60%.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>A series of new tax incentives applicable to personal income tax on residential property leases. Law 12\/2023, of May 24, <span>&#8230;<\/span><\/p>\n","protected":false},"author":1,"featured_media":9034592,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[873],"tags":[],"class_list":["post-9034585","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-tax"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.8 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Tax incentives for leases for residential purposes - gremicat<\/title>\n<meta name=\"description\" content=\"A series of new tax incentives applicable to personal income tax on residential property leases.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.gremicat.es\/en\/tax-incentives-for-leases-for-residential-purposes\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Tax incentives for leases for residential purposes - 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