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

For leasing empty homes

Regulations: Articles 8 ter and 18.4.c) Consolidated Text of the legal provisions of the Community of Madrid regarding taxes ceded by the State, approved by Legislative Decree 1/2010, of October 21

Amount of deduction

1,000 euros for each of the real estate properties intended for rental of housing .

Temporal scope of application of the deduction

The deduction is applicable in the year of formalization of the corresponding lease contract .

Requirements for applying the deduction

  • The deduction may be applied by taxpayers owners or usufructuaries of empty homes , for at least one year prior to the conclusion of a housing lease contract subject to Law 29/1994, of November 24, on Urban Leases.

    A dwelling will be considered empty when it is not inhabited, rented, in use, or affected by economic activities.

  • The lease agreement must have effective duration of at least three .

    This requirement will be deemed to have been met when the contract reaches this duration , even if no initial duration period has been stipulated, it is indefinite or has an initial duration of less than three years if, as a result of the system of mandatory annual extensions, the minimum duration of three years is reached.

    However, the right to the deduction will not be lost if the lease agreement has a duration of less than three years when the property becomes a rental expectation situation and is again the subject of a new residential lease agreement within the period of six months from the end of the previous agreement , provided that the sum of the duration periods of the lease agreements is at least three years .

  • The tenant of the dwelling may not be the spouse or a relative , by blood or marriage, up to the third degree inclusive, of the taxpayer.

  • Only taxpayers who own maximum of five properties used as housing excluding garages and storage rooms) may apply this deduction.

    For this purpose properties in which the taxpayer has a stake, as owner or usufructuary, must be included, with the exclusion of garages and storage rooms, regardless of whether any of them are intended to satisfy the taxpayer's housing needs or could be excluded from the scope of the deduction.

  • Taxpayers must be in possession the receipt or, where applicable, a copy of the receipt for the deposit of the security deposit at the Social Housing Agency of the Community of Madrid, formalized by the landlord, in accordance with the provisions of Article of Law 29/1994, of November 24, on Urban Leases, and Decree 181/1996, of December 5, which regulates the deposit regime for rental deposits in the Community of Madrid.

Other conditions for the application of the deduction

The amount of the deduction will be prorated based on the percentage of ownership interest in the property .

The amount of the deduction will be prorated based on the percentage of participation that the taxpayer has as owner or usufructuary in the property leased.

Loss of the right to deductions made

Failure to comply with any of the required requirements will result in the loss of the right to the deduction , with regularization proceeding in accordance with the provisions of state regulations for personal income tax .

Compatibility

This deduction is compatible with the application of the regional deduction "For expenses derived from the rental of housing."

Note: 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 regional deduction for the Canary Islands for the rental of primary residences and for the Madrid regional deduction for the rental of vacant residences" in Annex B.11 of the declaration.