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A query was raised regarding whether the 60% tax reduction for residential leasing applies to a property located in Andorra. The Directorate General for Taxes (DGT) ruled that the reduction is applicable provided it is proven that the effective purpose of the contract is the tenant's permanent residence, regardless of the property's location abroad.
This ruling provides legal certainty for taxpayers owning properties abroad, confirming that the location of the asset does not disqualify them from residential leasing tax benefits, provided the primary use is the tenant's permanent home.
The tax team reviews your specific situation.
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