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A taxpayer inquired whether the 90% reduction on net rental income could be applied to a property located outside a declared stressed residential market area. The Directorate-General for Taxes (DGT) ruled that locating the property within a stressed residential market area is an essential requirement to access this tax benefit.
Landlords operating in non-stressed areas will not be eligible for the significant 90% reduction on net rental income, affecting tax planning for residential property investments.
The tax team reviews your specific situation.
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