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V0093-19 15 January 2019 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimiento neto

60% tax reduction inapplicable if net income from residential rental is negative

A query was raised regarding whether the tax reduction for residential leasing can be applied when the net income obtained is negative. The Directorate-General for Taxes (DGT) has ruled that such a reduction only applies to positive net income.

The question raised

Whether it is possible to apply the reduction for the leasing of real estate intended for residential use, whether as a primary residence or for rental to young people, when a negative net income has been generated from said leasing.

The DGT's ruling

The 60% reduction provided for in Article 23.2 of the Personal Income Tax Law (LIRPF) applies to the positive net income derived from the leasing of real estate intended for residential use. Therefore, said reduction is not applicable to a negative net income.

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