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A taxpayer inquired whether monthly payments from a City Council for a usufruct over her property could qualify for the housing rental tax reduction. The Directorate General of Taxes (DGT) ruled that this reduction applies exclusively to lease agreements and not to the establishment of usufruct rights.
This ruling clarifies that income derived from usufruct rights is treated differently from standard rental income for tax reduction purposes, potentially increasing the tax burden on such income.
The tax team reviews your specific situation.
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