For rental of main residence

Regulations: Art. 4.One.n), Four and Fifth Law 13/1997, of December 23, regulating the autonomous section of the personal income tax and other transferred taxes, of the Valencian Community .

Amounts and maximum amounts of deductions

• The percentages and maximum deduction amounts indicated in the following table may be applied to the amounts paid in the tax period for renting the habitual residence, depending on the personal situation of the tenant:

  Personal circumstances of the tenant	Percentage of deduction	Deduction limit
  In general	15 percent	550 euros
  Age equal to or less than 35 years or with a degree of physical or sensory disability equal to or greater than 65% or with a degree of mental disability equal to or greater than 33%	20 per 100	700 euros
  Age equal to or less than 35 years and, in addition, with a degree of physical or sensory disability equal to or greater than 65% or with a degree of mental disability equal to or greater than 33%	25 percent	850 euros

  Note: In order to be able to apply this deduction, the taxpayer must pay, as a tenant, amounts in rent for his or her habitual residence during the tax period. Therefore, in the case of marriage, whatever the economic regime, only the amounts paid by spouse who signed the lease contract will be deductible, without prejudice to the fact that said contract has internal effects between the spouses.

• The maximum deduction amount be prorated by the number of days that the remains in force within the tax period and in which the personal circumstances required for the application of the different deduction percentages are met.

Requirements and other conditions for the application of the deduction

• That the date of the lease contract is after April 23, 1998 and its duration is equal to or greater than one year.

• That it is the lease of the taxpayer's habitual residence, effectively occupied by the taxpayer. For these purposes, the concept of habitual residence included in the state regulations governing IRPF will be used.

  Remember: In order to deal with the impact of Covid-19, the requirement regarding the obligation of the taxpayer, as to submit the corresponding self-assessment of the Tax on Property Transfers and Documented Legal Acts derived from the lease agreement for the habitual residence was removed, with effect from January 2019, by the First Additional Provision of Decree Law 1/2020, of 27 March (##1## DOCV ##1## of 30).

• That, for at least half of the tax period, neither the taxpayer nor any of the members of his/her family unit are the owners of full ownership or a real right of use or enjoyment of another home less than 100 kilometers from the rented home.

  Clarifications:

  • The concept of family unit is established in article 82 of the Personal Income Tax Law and is examined in Chapter 2 of this Manual.

  • The expression that they are holders of full ownership or a real right, without specifying what the maximum or minimum percentage of ownership required by law should be, implies that any participation in another dwelling prevents the application of the benefit, even in cases where the dwelling cannot be used because it needs renovation.

  • Finally, in the case of community property of hereditary origin, the heirs (even if they are not part of the same family unit) cannot apply this deduction if they have rented another home that is not 100 kilometres from a property of which they hold full ownership or rights of use or enjoyment. However, the deceased's assets over which the surviving spouse held usufruct by operation of law, attribution by the testator or by adjudication would not be included in this category.

• That taxpayer is not entitled in the same tax period to any deduction for investment in primary residence .

• That the sum of the general taxable base and the savings taxable base or , boxes [0500] and [0510] of the declaration, does not exceed the following amounts:

  • - 30,000 euros in individual declaration.
  • - 50,000 euros in joint declaration.
• When two or more taxpayers declaring tax are entitled to apply this deduction for the same dwelling , the limit will be prorated between them in equal parts.

Application of quantitative limits of the deduction according to the taxable base: 

• The maximum deduction limits (550, 700 or 850 euros, as appropriate) will only apply to taxpayers whose sum of the general taxable base and the savings taxable base is less than 26,000 euros, in individual taxation, or less than 46,000 euros, in joint taxation.

• When the sum of the general taxable base and the savings taxable base of the taxpayer is between 26,000 and 30,000 euros , in individual taxation, or between 46,000 and 50,000 euros, in joint taxation, the amounts and limits of the deduction will be the following:

  1. In individual taxation, the result of multiplying the maximum deduction limit (550, 700 or 850 euros as appropriate) by a percentage obtained by applying the following formula:

     100 × (1 – the coefficient resulting from dividing by 4,000 the difference between the sum of the taxpayer's general and savings taxable base and 26,000)

  2. In joint taxation , the result of multiplying the maximum deduction limit (550, 700 or 850 euros as appropriate) by a percentage obtained by applying the following formula:

     100 × (1 – the coefficient resulting from dividing by 4,000 the difference between the sum of the taxpayer's general and savings taxable base and 46,000)

  The apportionment of the maximum deduction limits must only be carried out when there is more than one person who, by filing a tax return, can apply the deduction for the same home by meeting all the requirements for doing so, including the maximum amount of the taxable base, even if they do not apply it effectively. Therefore, persons who do not file a declaration or those who have a taxable base higher than required are not taken into consideration for the purposes of the apportionment.

• The application of the deduction is conditional on the delivery of the monetary amounts derived from the act or legal transaction gives the right to its application being made by credit or debit card, bank transfer, personal check or deposit into accounts in credit .

  The requirement for this is established in the sixteenth Additional Provision of Law 13/1997, of December 23, which regulates the autonomous section of the Personal Income Tax and other transferred taxes. 

Compatibility

This deduction is compatible with the one discussed below "For renting a home as a result of carrying out an activity, on one's own account or on behalf of another, in a different municipality."

Note: Taxpayers entitled to the deduction must complete the section "Additional information on the regional deduction for rent" in Annex B.6 of the declaration in which, in addition to the data necessary to quantify the deduction, the NIF / NIE of the landlord of the home must be stated and, if applicable, that of the second landlord or, where appropriate, if a NIF of another country has been entered, an X will be marked, respectively, in the corresponding boxes.