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V3019-17 20 November 2017 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del capital inmobiliario

60% tax reduction for student room rentals on a seasonal basis is not applicable

A landlord inquired whether the reduction in net income from residential leases could be applied when renting rooms to students for the duration of a university course. The Directorate General for Taxes (DGT) ruled that it is not applicable because the rental does not satisfy the permanent need for housing.

The question raised

Whether the reduction of the net yield provided for in the Personal Income Tax Law may be applied.

The DGT's ruling

To apply the 60% reduction provided for in Article 23.2 of the Personal Income Tax Law (LIRPF), the lease must pertain to a property intended for residential use according to the Law on Urban Leases (LAU). This requires that the primary purpose be to satisfy the tenant's permanent housing need. As the rental is for the duration of the university term, this requirement of permanence is not met.

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