The Government’s plan to try to lower rental prices involves granting tax incentives to landlords who rent their properties according to the state reference index of the Ministry of Housing. Treasury technicians calculate that the bonuses of up to 100% on personal income tax announced for these owners could result in an annual saving of up to 350 euros by landlord, although they would not benefit the lowest incomes nor the highest ones.
The union of Technicians of the Ministry of Finance (Gestha) has indicated in a statement released this Tuesday that the tax bonus announced by the Government would compensate landlords with annual income of between 12,000 and 60,000 eurosalthough they point out that the benefit would be “very moderate.” The analysis has been carried out based on data from the INE and the Tax Agency statistics, which show the average rental yields obtained by each income bracket.
Specifically, they calculate that, once the reduction in income as a result of the drop in rental prices has been discounted, The net savings would range between 67.65 and 347.23 euros with a 100% bonus, with the least and most beneficiaries being the landlords with incomes below 21,000 euros per year and above 30,000 respectively. The Treasury technicians remember that this exemption would be added to the catalog of bonuses that currently exist, which range from 50% to 90% depending on the circumstances and the autonomous community.
From Gestha they explain that below the threshold of 12,000 euros of annual income, landlords would not be interested in limiting the rental income and then benefiting when filing the income tax return, since owners at these income levels do not They pay taxes – although they do have to file the declaration – and, therefore, they would not obtain any ‘prize’ in exchange. At the opposite extreme, Treasury technicians consider that the tax credit would not compensate landlords with income of more than 60,000 euros per year. This is because they are usually the ones who rent more expensive houses and, consequently, what they would stop earning by adapting prices to the reference index would be lower to the amount of savings in personal income tax.
While waiting to know what the final configuration of the tax bonus proposed by the Executive will be, sources from Moncloa emphasize that the objective of this measure is to encourage affordable rentals and, therefore, it is intended to limit its scope on the most expensive homes. In that sense, they point out that the state reference index is a good indicator, since it does not include properties with the most expensive prices. This would prevent landlords in high-income areas from benefiting from the bonus, as the index is not operational.
In any case, the details are yet to be finalized. In the announcement made a week ago, the President of the Government, Pedro Sánchez, committed to promoting the implementation of a 100% personal income tax exemption for owners who rent their home according to the Reference Price Index, regardless of whether they are in a stressed area or not. Executive sources clarify that the amount and the requirements to qualify for it are still to be defined, but they point out as model for the bonuses provided for in the housing law for stressed areas.
The catalog of tax incentives included in the state standard includes bonuses of up to 90% in personal income tax for those landlords who reduce the rental price by at least 5% compared to the last contract. Sources from the Ministry of Housing point out that if this incentive were extended to the Community of Madrid, for example, each landlord could stop paying taxes on average 5,600 euros. And they point out that the savings would be greater if the bonuses reached 100%, as proposed by the President of the Executive.
In any case, the creation of this new tax bonus will have to go through the Congress of Deputies. The Minister of Housing, Isabel Rodríguez, has expressed confidence that the proposal proposed by the Government reach the Lower House “at the beginning of February” and has asked for “responsibility” from the different parties to move it forward.
#Landlords #save #euros #renting #reference #index #benefit #highest #renters
