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V1421-25 24 July 2025 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del capital inmobiliario

Reduction of rental income possible if primary purpose is to meet tenant's permanent housing need

The consultant asks whether renting a property to a student for permanent residence allows the application of the reduction of rental income from real estate. The DGT responds that such reduction applies only if the rental is primarily intended to meet the tenant's permanent housing need.

The question raised

Classification of the lease as a residential lease for the purposes of Personal Income Tax.

The DGT's ruling

To apply the reduction provided in Article 23.2 of the Personal Income Tax Law (LIRPF), the lease must be a residential lease according to the Law on Urban Leases (LAU), which requires that the primary purpose be to satisfy the tenant's permanent housing need. If the rental is carried out only for the duration required by the student for their university course without satisfying that permanent need, the reduction shall not be applicable. The accreditation of this requirement is a matter of fact that must be proven by the taxpayer.

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