As a homeowner, you are probably aware of the changes introduced by the new housing law passed in May 2023.
One of the most relevant changes directly affects the deduction for rented housing. Until now, the owners enjoyed a 60% deduction in the Personal Income Tax (IRPF). However, as of January 1, 2024, this percentage will be reduced to 50% for contracts signed after that date.
It is crucial to take into account the date on which the rental contract was signed: if it was signed before January 1, 2024, the deduction will continue to be 60%; if it was later, the new percentage of 50% will apply.
But that’s not all. The new law also introduces the possibility of obtaining a deduction of more than 50% in certain cases:
- 90% deduction: For new contracts signed in stressed areas, the price of which is at least 5% lower than the price of the last contract.
- 70% deduction: When a property is rented for the first time and the tenant is between 18 and 35 years old, also in stressed market areas.
- Deduction of 60%: This percentage will be applied if the above requirements are not met. However, there is still an opportunity to obtain this deduction if the property has been rehabilitated as established in the Tax Regulations in the two years prior to the signing of the rental contract.
In summary, it is important to be aware of these changes and plan accordingly. Don’t forget to report your rental income to the tax authorities at all times. Failure to do so may result in a financial penalty higher than the taxes you have to pay.
If you have any doubts, please contact us to guide you at all times with your declaration.
Take full advantage of the tax deductions available for rental property owners and make sure you qualify for the maximum possible benefit with Inmo Empire!
