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Practical manual for Income Tax 2024. Part 2. Autonomous community deductions

For expenses arising from the adaptation of a property for rental as a habitual residence

Regulations: Art. 15 ter Consolidated Text of the current legal provisions issued by the Autonomous Community of the Canary Islands on transferred taxes, approved by Legislative Decree 1/2009, of April 21

Amount and maximum limit of the deduction

  • 10% of the amounts paid in the tax period by taxpayers, corresponding to any of the following concepts:

    • - Repair and maintenance expenses, as well as any other expenses necessary to ensure a property is in a condition to be rented.

    • - Expenses for formalizing leasing contracts.

    • - Insurance premiums for damages and non-payments.

    • - Expenses required to obtain energy efficiency certificates.

  • The maximum deduction limit is 150 euros per rented property, for both individual and joint taxation.

Requirements and other conditions for the application of the deduction

  • basis for this deduction will be amounts justified with an invoice, which must meet all the conditions established in the Regulation governing invoicing obligations approved by Royal Decree 1619/2012, of November 30.

    The invoice received by the taxpayer must be kept for the duration of the limitation period.

    If it concerns marriages under joint property regime the amounts paid for the marriage will be attributed to both spouses in equal parts, so both will be able (if they meet the rest of the requirements established in the law) to apply the deduction on half of the amounts paid (even if the invoice is in the name of only one of them). In all other cases (marriages with separation of property, common-law couples, etc.) it will be necessary to prove who has paid the expenses and that person will be able to apply the deduction for the total amount paid by him, provided that said taxpayer meets the rest of the requirements established in the regulations.

  • Deduction will only be applicable to residential leases provided for in Article 2 of Law 29/1994, of November 24, on urban leases.

  • In the event of incurring expenses for the repair and maintenance of the property, the application of this deduction is subject to the declaration by the taxpayer of the tax identification number of the service provider and its annual amount.

  • The base of the deduction will be reduced by the amount of the aid granted by the Public Administrations in the tax period in question, which covers all or part of the expenses that give rise to the deduction, provided that such aid is considered as exempt income for the purposes of Personal Income Tax .

  • When two or more taxpayers are entitled to this deduction, its amount will be prorated between them based on the percentage of ownership or usufruct of the property.

Incompatibility

This deduction is incompatible with the application of the regional deduction "For expenses on credit insurance premiums to cover unpaid rental income for housing", and both deductions cannot be applied to the same amounts .

Important: Once taxpayers entitled to the deduction have entered the information required for its calculation, it will be automatically transferred to the section "Additional information on the Canary Islands regional deduction for expenses arising from the adaptation of a property for rental as a primary residence" in Annex B.12 of the declaration.