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V2354-24 14 November 2024 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del capital inmobiliario

Possibility of applying the residential lease tax reduction when the tenant is a foundation

A property owner has enquired whether they can apply the Personal Income Tax (IRPF) reduction for renting out their home to a foundation for use by its beneficiaries. The Directorate General for Taxes (DGT) indicates that a 70% reduction may apply if specific social housing or vulnerability requirements are met, or a 50% reduction if it is proven that the property is used as housing for specific natural persons.

The question raised

It requests to know whether it is appropriate to apply the reduction for the leasing of housing under article 23.2 of the Personal Income Tax Law.

The DGT's ruling

To apply the 70% reduction, the foundation must be subject to the regime of Law 49/2002 and allocate the housing to social rental or to persons in a situation of vulnerability. Otherwise, the 50% reduction may be applied if, under the terms of the contract, it is proven that the property is intended for housing and the use falls to specific natural persons. The fulfillment of these requirements is a matter of fact that must be proven through valid means of evidence.

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