Skip to content
Back to index
V1374-20 12 May 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimiento neto positivo

60% tax reduction on room rentals for students not applicable per academic year

A query was raised regarding whether a 60% reduction on the net income from renting rooms to university students is applicable during the academic year. The Directorate-General for Taxes (DGT) ruled that the reduction does not apply because the rental does not aim to satisfy a permanent housing need.

The question raised

Whether the reduction under Article 23.2 of Law 35/2006 is applicable.

The DGT's ruling

The 60% reduction under Article 23.2 of the Personal Income Tax Law (LIRPF) only applies to residential leases whose primary purpose is to satisfy the permanent need of the lessee. Seasonal leases or leases for the duration required by students for the university term do not qualify as residential leases. In this case, as it is for the duration of the academic term, the reduction is not applicable.

Book your free first meeting