Take Advantage of Housing and Rent Deductions in Spain

TAKE ADVANTAGE of housing and rent deductions in Spain. One of the most applied deductions in the income statement is the one that concerns the home. As much as what refers to the purchase of habitual residence as in the rental modality. Many taxpayers usually ask if the acquisition of their home allows them to deduct in the income statement.

In recent years there have been developments concerning both concepts, changes that affect many taxpayers and that modify different regulations of the income statement. In 2013, the deduction for investment in habitual residence was abolished. A year later, the deduction for rent also for habitual residence was eliminated. However, both deductions are in a transitory regime until they are completely eliminated.

As reported by La Opinion de Malaga, in the case of the purchase of a habitual residence, only those taxpayers who have already done so previously and who acquired their home before January 1, 2013, may continue to benefit from this deduction in the income statement. It may also be done by those who, on the same date, have already paid for the construction of the house, an extension, renovation or the carrying out of works for reasons of disability and in any case said works have been completed before January 1 of 2017.

To benefit from the transitory deduction regime, taxpayers are required to have applied the deduction for a said home in 2012 or previous years unless they have not been able to apply it so far because the investment did not exceed the exempt amount barrier.

After the abolishment of the Personal Income Tax Law in 2014, which eliminated the possibility of making deductions for the rental of a habitual residence, the deduction for these concepts is governed by a transitional regime that establishes that only some can benefit from this type of deductions. Therefore, only those who had a lease prior to January 1, 2015, having paid amounts for rent on that date, and had already been deducted for the rental of said home in previous years, may benefit from the deduction.