Skip to content
Back to index
V1204-18 10 May 2018 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · deducción por rentas en ceuta o melilla

Tax deduction for income in Ceuta or Melilla applies only to income earned in those territories

A taxpayer inquired whether, upon moving their residence to Melilla, they could apply the tax deduction for income earned in Ceuta and Melilla to all their income. The Directorate General for Taxes (DGT) ruled that the deduction only applies to income obtained within those specific cities, unless certain specific requirements are met after three years of residence.

The question raised

Whether, in the event of transferring residence to Melilla, the deduction for income obtained in Ceuta and Melilla is applicable to the aforementioned income.

The DGT's ruling

Residents in Ceuta or Melilla may deduct 50% of the tax liability proportional to the income obtained in said territories. After three years of habitual residence, income obtained elsewhere may be included if at least one third of the net assets is located in those cities. In the specific case, only income derived from professional activity carried out there and returns from deposits or accounts in the city's financial institutions could be computed as Melilla income.

Book your free first meeting