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V2263-24 23 October 2024 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del capital inmobiliario

70% tax reduction on residential rent may apply if the tenant is a non-profit entity under certain conditions

A taxpayer has enquired whether the tax reduction for residential leasing can be applied when renting their property to the Red Cross for refugee housing. The Directorate General for Taxes (DGT) indicates that the 70% reduction is applicable provided the requirements of Law 12/2023 regarding the tenant and the use of the property are met.

The question raised

Whether the reduction for the leasing of housing established in letter b) of article 23.2 of the Tax Law is applicable.

The DGT's ruling

It is possible to apply the 70% reduction of the positive net income if the lessee is a non-profit entity subject to the regime of Law 49/2002 and allocates the housing to social rental or to the accommodation of persons in a situation of economic vulnerability. This reduction only applies to contracts entered into as of May 26, 2023. The concurrence of the requirements is a matter of fact that must be proven with valid means of evidence.

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