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V1418-25 24 July 2025 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del capital inmobiliario

90% rent reduction requires rent cut of over 5% from previous contract rent

The consultant asks about the amount of the 5% rent reduction to apply the 90% deduction in tense areas. The DGT clarifies that the reduction must exceed 5% compared to the previous contract rent, including any annual adjustment.

The question raised

Request for clarification on which amount the five percent rent reduction should be calculated against for the new tenant. Whether it should be calculated based on the initial amount of the previous contract or on the final lease amount with the CPI increases applied at the time of the termination of the lease agreement.

The DGT's ruling

To apply the 90% reduction in stressed residential market areas, the initial rent of the new contract must be more than 5% lower than the last rent of the previous contract. This calculation must be performed once the annual update clause of the previous contract has been applied, if any. The requirements must be met at the time of entering into the contract and maintained throughout its term.

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