Skip to content
Back to index
V1675-24 10 July 2024 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del capital inmobiliario

50% rent reduction requires the property to serve the tenant's permanent housing needs

The applicant inquired whether the 50% reduction under Article 23.2 of the IRPF Law applies if room rental contracts are terminated before twelve months. The DGT ruled that the reduction is only applicable if the primary purpose of the lease is to satisfy the tenant's permanent housing needs.

The question raised

Request to determine whether the fifty percent reduction provided in Article 23.2 of the Personal Income Tax Law may be applied if the contracts are terminated before twelve months.

The DGT's ruling

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

Book your free first meeting