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V2810-19 11 October 2019 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimiento neto

60% tax reduction on residential rent requires property to meet tenant's permanent housing needs

The applicant inquired whether the 60% reduction on net income can be applied when renting out rooms in a property. The Directorate-General for Taxes (DGT) ruled that this reduction only applies if the contract is classified as a residential lease under the Tenancy Act (LAU), which requires the property to satisfy the tenant's permanent housing needs.

The question raised

Temporal and subjective requirements that must coexist in lease agreements for the application of the reduction under Article 23.2 of Law 35/2006.

The DGT's ruling

The 60% reduction under Article 23.2 of the Personal Income Tax Law (LIRPF) requires that the lease be for a dwelling, with the primary purpose of satisfying the permanent need of the lessee. The reduction is not applicable to seasonal leases or those whose purpose is not a permanent dwelling, such as the rental of rooms for the duration of a university course. If the dwelling requirement is met, the reduction is applicable regardless of the status of the lessee (student, worker, etc.), and the reduction must be prorated according to the portion of the dwelling leased.

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