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V3162-21 21 December 2021 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del capital inmobiliario

60% tax reduction does not apply to seasonal or student university course rentals

A landlord inquired whether the 60% reduction on net income could be applied when renting rooms to students and how to substantiate expenses. The DGT ruled that the reduction is not applicable if the lease is for a seasonal term and stated that expenses must primarily be justified with invoices.

The question raised

Whether the reduction under Article 23.2 of Law 35/2006 is applicable, as well as the means of accreditation for deductible expenses related to income from real estate capital.

The DGT's ruling

The 60% reduction under Article 23.2 of the Personal Income Tax Law only applies to leases whose primary purpose is to satisfy a permanent housing need. It is not applicable to seasonal leases or when the rental is carried out for the duration required by students for their university course. Deductible expenses must be primarily justified by means of an invoice.

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