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V5383-16 20 December 2016 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del capital inmobiliario

60% tax reduction on residential rent cannot be applied to seasonal lets

A taxpayer inquired whether the reduction in net income from residential leasing could be applied to an 8-month rental agreement. The DGT ruled that, as it is a seasonal let, it fails to meet the requirement of satisfying a permanent housing need.

The question raised

Whether the reduction of the 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 be for residential purposes according to the Urban Leasing Act (LAU), which implies satisfying the tenant's permanent housing need. Urban property leases entered into for seasonal use are considered to be for a purpose other than residential use. Therefore, if the lease is for seasonal use, the reduction is not applicable.

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