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V1106-20 ·28 April 2020 ·consulta-vinculante Medium impact
Tax

60% tax reduction on residential rent applicable if intended to meet the tenant's permanent housing needs

A taxpayer inquired whether the 60% reduction on rental income could be applied to a five-year lease for a pensioner residing in the property for only six months a year. The Directorate General for Taxes (DGT) ruled that the reduction applies if the contract's purpose is to satisfy the permanent housing need, regardless of the tenant's specific circumstances.

In 5 key points

How it affects those involved

This ruling provides clarity for landlords regarding the application of tax incentives for long-term residential rentals, even when the tenant's residency pattern is seasonal, provided the contractual intent is permanent housing.

Lifecycle

2020-04-28PublishedPublished in the BOE
Official text Based on BOE data (boe.es). Information, not advice.

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This analysis is informational only and does not constitute legal advice or create a client-adviser relationship. BM Consulting.
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