Skip to content
Back to index
V0617-22 23 March 2022 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del capital inmobiliario

Tax reduction for residential leasing may apply to properties located abroad

A query was raised regarding whether the 60% tax reduction for residential leasing applies to properties situated outside of Spain. The Directorate General for Taxes (DGT) has ruled that it is possible, provided that the requirements regarding the property's use as a residence are met.

The question raised

Whether the reduction for the lease of a residence under Article 23.2 of the Tax Law is applicable in the event that the leased residence is located abroad.

The DGT's ruling

The reduction provided in Article 23.2 of the Personal Income Tax Law (LIRPF) is applicable provided it is proven that the property is used as a residence, regardless of whether the leased property is located abroad. The requirement is that the effective purpose of the contract be the permanent residence of the lessee, pursuant to the Urban Leasing Act.

Book your free first meeting