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V4837-16 ·10 November 2016 ·consulta-vinculante Medium impact
Tax

60% tax reduction on room rentals applicable if intended for permanent residence

A co-owner inquired whether renting rooms to students for 12 months qualifies for the reduction under Article 23.2 of the Personal Income Tax Act (LIRPF). The Directorate General for Taxes (DGT) ruled that if the primary purpose is to meet a permanent housing need, the reduction is applicable.

In 5 key points

How it affects those involved

Taxpayers renting out rooms can benefit from a 60% reduction on rental income, provided they can demonstrate the rental serves as the tenant's permanent residence.

Lifecycle

2016-11-10PublishedPublished 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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