For leasing of real estate in the territory of the Balearic Islands intended for housing (landlord deduction)

Regulations: Art. 4 quater of the Revised Text of the Legal Provisions of the Autonomous Community of the Balearic Islands on Taxes Transferred by the State, approved by Legislative Decree 1/2014, of June 6.

Amount and maximum limit of the deduction

• 75 percent of the expenses paid by the taxpayer during the year in the form of credit insurance premiums that cover all or part of the non-payment of rents to which the taxpayer is entitled by reason of the leasing of one or more real estate properties, located in the Balearic Islands, to a third party for housing purposes.
• The maximum amount of this deduction will be 400 euros per year in both individual and joint taxation .

Requirements for applying the deduction

• That the duration of the rental contract for housing with the same tenant is equal to or greater than one year .
• That the deposit of the security referred to in article 36.1 of Law 29/1994, of November 24, on Urban Leases, has been constituted in favor of the Balearic Housing Institute.
• That taxpayer declare in IRPF the income derived from the rental income of the home as income from real estate capital.