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V3709-16 5 September 2016 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del capital inmobiliario

60% tax reduction for seasonal room rentals cannot be applied

A taxpayer inquired whether the reduction in net income could be applied when renting rooms to foreign students for four-month seasonal periods. The Directorate General of Taxes (DGT) ruled that, as it is a seasonal rental, the requirement for permanent residence is not met.

The question raised

Whether the reduction in net income 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 Tenancy Act (LAU), seasonal leases have a purpose different from that of permanent residence. Therefore, if the rental is carried out on a seasonal basis, the aforementioned reduction is not applicable.

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