Rent deductions: income statement 2021


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We are about to finish a year different from many others, but still you should know how to file the 2021 income tax return in the face of the times that lie ahead. Pay attention to this article to find out about the rental deductions that you can make a profit on.

INCOME STATEMENT 2021

Despite the confinement and the state of alarm approved by the Government last March of this year, the  Tax Agency did not postpone the income declaration campaign and it was carried out from April to June of this year. We do not know the dates for 2021 yet, but they may coincide. Also, it is likely that it can be done at the Agency's offices that have been providing common face-to-face service since last July 1 by appointment.

 

DEDUCTIONS FOR OWNERS

Not all landlords have the right to apply the reduction. The leased property must, yes or yes, be used for the tenant's home, and not for any other purpose. For example, if the rental of the property is intended for a company, no reduction can be applied. The rental reduction provided for in the Personal Income Tax Law is calculated on the positive net income obtained from the rental of a home.

There are other expenses that you can deduct such as the following:

  • Loans that you have acquired to make home improvements.
  • Taxes such as IBI, cleaning fees, lighting and other taxes.
  • Expenses for conservation and repair of the property.
  • The amount of premiums for insurance contracts.
  • The amounts derived from personal services accrued by third parties such as: security, administration, etc.
  • Expenses related to the formalization of the rental.
  • The amounts allocated to supply services.

RENTAL DEDUCTIONS FOR TENANTS

There are two types of deductions from which you can obtain benefits for the income statement: the state deduction and the regional deduction. Here we tell you the difference.

 Only those people who have a rental agreement prior to the date of January 1, 2015, will be able to adhere to the state deduction of rent for habitual residence, and, of course, this contract must remain valid today. The deduction is 10.05% of the amounts paid, provided that the taxpayer's tax base is less than 24,107.20 euros per year. 

Regarding the  regional deductions , which you can take advantage of, regardless of the date of the rental contract, these will depend on where you live. Each Autonomous Community has different deduction percentages and maximum deductible amount.

Regional rent deductions

We said that the autonomic deductions vary depending on where you reside, here we leave a small summary.

Andalusia

This community allows the deduction of 15%, with a maximum of 500 euros per year. But this deduction is only available to taxpayers under 35 years of age who do not receive more than 19,000 euros among the tax base, an amount that rises to 24,000 euros in the case of joint taxation. They must prove the constitution of the deposit of the bond in the community, as well as identify their landlord. In the event that there is a second landlord, it must also be filled in. Taxpayers entitled to the deduction must complete the section: "Additional information to the regional deduction for leasing" in Annex B.6) of the return.

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Aragon

The maximum deduction is 10% with a maximum base of 4,800 euros per year. Taxpayers who can benefit from this aid are those whose general tax base and savings do not exceed 15,000 euros. This amount rises to 25,000 euros in the case of joint taxation.

Asturias

The deduction practiced by this autonomy is 10% with a maximum of 455 euros, both in individual and joint taxation.

Catalonia

The regional deduction available in Catalonia for tenants for the rental of a habitual residence is 10%, with a limit of no more than 300 euros per year, as long as some requirements are met: the tenant must be under 32 years of age and charge less of 20,000 euros a year. In addition, the rent payment must represent more than 10% of the taxpayer's salary. The maximum limit can reach 600 euros per year, provided that on the date of accrual of the tax the taxpayer also belongs to a large family.

Valencian Community

In the case of the Valencian Community, there are two forms of deduction; On the one hand, it can be a 15% general deduction with a maximum deductible of 500 euros, while those under 35 years of age, over 65 and disabled obtain 20% and their maximum deductible is 700 euros.

Galicia

This community allows the taxpayer to deduct 10% of the amounts, with a maximum of 300 euros per year. In the event that the tenant has at least two minors in his charge, the cap increases to 600 euros with a deduction of 20%. If it is a disabled person, the amounts are doubled. In order to apply this relief, at least one of the tenants must be at most 35 years of age. The lease must have been dated after January 1, 2003 and it is necessary that the deposit of the bond has been established in the Galician Institute of Housing and Land .

Madrid

The deduction available is 30%, with a maximum of 1,000 euros, for tenants under 35 years of age who earn less than 25,620 euros a year in their tax base or 36,200 in the case of joint taxation.

Murcia

There are no deductions available.

Basque Country

The Basque Treasury allows a deduction for the rental of homes of 20%, with a limit equivalent to 1,600 euros per year.

Professional contact

We understand how tedious it can be to learn the requirements to obtain deductions and, above all, to complete the income statement procedures. You can always contact Oi REALTOR advisors so they can guide you with everything related to rentals. Do not hesitate to write us and become part of our clients.

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