Countdown to the start of the 2023-2024 Income Tax Return campaign, which will start in just two weeks, on April 3. Like every year, the instructions and advice are repeated, they are the usual ones, but there are some small new features. Among them, the changes brought about by the new Housing Law, which came into force in Spain last year, and introduced the declaration in the residential market in stressed areas.
There are several new developments regarding the tax incentives that can be applied to personal income tax. One of them is that this year the general deduction that owners can take advantage of will be cut: from 60% to 50%, according to the real estate portal stories.com.
Tax incentives
In addition, the highest of the tax incentives, a 90% reduction, will be applied to those landlords who formalize new contracts in homes located in stressed markets and who, in addition, reduce the rental income by at least 5% compared to what your tenant paid with the previous contract.
“For those people who do not meet these requirements, there is a 70% deduction, as long as the property that is added to the market is in a stressed area and so that young people between 18 and 35 years old can move in,” highlights the Director of Studies and spokesperson for apartments.com, Ferran Font, after the entry into force of the Housing Law.
Finally, owners will be able to benefit from a 60% reduction if their homes have been the subject of rehabilitation work that has improved their energy efficiency and consumption, and has been carried out in the two years prior to the conclusion of the contract. Font explains that these types of Government measures aim to promote “the improvement and conservation of our aging housing stock.”
Declare all income
Furthermore, the leader of apartments.com recalls that, as usual, “landlords, regardless of whether or not they receive payments from their tenants, are required to declare all income from rental income in their tax return.”
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