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RENTA 2019 in 2020: deduction for renting a habitual residence in Baleares.

Wednesday, 20 May, 2020

Most of the autonomous communities have a personal income tax deduction for renting a home, mainly for tenants, but there are also some that maintain tax advantages for landlords. There is only one autonomy that does not deduct the rent rent 2019: Murcia. However, most rewards young, disabled or elderly tenants with a certain income.

The regional deductions in favor of the lessor are added to the state ones. The landlord can deduct up to 60% of the income linked to the rent, regardless of the age of the tenants. In this news we explain in which cases the landlord can enjoy the rent reduction and how not to lose it.

In the case of tenants, only those who signed the lease before January 1, 2015 can enjoy the state deduction. The reduction is 10.05% of the amounts paid, provided that the taxpayer's tax base is less than 24,020 euros.
Balearic Islands Deductions Income 2019

In the Balearic archipelago the deduction of 15% is available for renting the habitual residence in favor of certain groups, with a maximum of 400 euros. The taxpayer must meet any of the following conditions: be under 36 years of age or have 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%. Another circumstance is that it is the father who lives with the son subject to parental authority and who are part of a large family.

Other requirements that the tenant must meet is that the duration of the rental contract is equal to or greater than one year; that the deposit has been deposited in the corresponding body; that the taxpayer is not enjoying another deduction for rent and that he does not have a property owned less than 70 km from the municipality in which he is as a tenant.

In addition, the taxpayer cannot earn more than 20,000 euros per year or (34,000 euros if it is a joint return) or exceed 26,000 euros in the case of large families (40,000 euros is the limit of the joint return). To verify this, the taxpayer must review the amounts of the general tax base and the savings located in boxes 0435 and 0460 of the return filed in 2019.

This community also allows another deduction, but in this case to the lessor. This can be deducted 75% of the expenses paid in 2019 for credit insurance premiums that fully or partially cover the non-payment of the income to which the taxpayer is entitled by reason of renting one or more properties to a third party intended to housing. The maximum amount of this deduction will be 400 euros per year.

In order for the landlord to deduct the rent, he must maintain a lease equal to or greater than one year, must have deposited the bond with the corresponding body and must declare in the income tax the income derived from the income from the rental of the house as income from the real estate capital.

Another deduction that the Balearic Government has implemented is that of 15% of the rent paid during 2019 due to the temporary transfer of your island of residence to another island in the Balearic archipelago within the scope of the same employment relationship as an employee and for a maximum three-year period. The maximum amount is 400 euros per year and the taxpayer must meet the following requirements: that it is their home, that the deposit has been deposited and that they earn no more than 30,000 euros per year in individual taxation or 48,000 euros in joint taxation. In addition, you must identify the landlord in the self-assessment of the tax.


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