Tax benefits of rental for the landlord and tenant

Both the landlord and the tenant are eligible for a number of rent subsidies. One hand, the landlord is required to pay tax on income received from the rental of your home, but there are certain expenses that you can deduct. Addition, once the revenue received from the rental have been discounted deductible expenses may also apply a series of reductions that in some cases reach up to 100% of net income

On the other hand, the law provides for a personal income tax deduction on the rent for tenants who do not pass an income limit. Also the regions apply their own deduction on income tax for tenants, provided that certain age and income requirements are met. Very important: both deductions can be applied together

If you own:

– The interest on loans that are paid for the purchase of housing

– Taxes and state fees that impact on income and housing: fee for cleaning, refuse collection and street lighting, ford and community costs

– Arrangement expenses and lease of a legal defense

– Maintenance costs, maintenance and repair (not including supplies intended for the expansion or improvement of housing): painting and other cosmetic fixes; repair or replacement of defective items such as windows, heating and electrical installation

– Contracts of insurance (liability, fire, theft, glass breakage or other similar services)

– Amounts for services or supplies (electricity, water, gas, telephone)

– Amortization of property and goods containing (about 3% of the value of construction wear it)
– administrative expenses, lawn care, security, janitorial and related services to the farm

– 100%: if tenants are between 18-30 years and their net returns are higher than the public income multiple effects (iprem), or if tenants are between 18-35 years, their net income is greater than the minimum wage and the rental agreement is prior to 01/01/2011

– 60%: in other cases

Applied to this reduction, the tenant must submit to the owner a communication indicating the following information: name, identity card, domicile, cadastral reference and indicating that meets the above requirements

Should be noted that these reductions do not apply to all rentals. Exempt leases vacation rentals or seasonal tourism. Nor can benefit rentals with catering service included. These reductions are contemplated for other dwellings rented to students, as the period between September and June is considered large enough to dissociate a seasonal lease

If you are a tenant:

– have deductions:

– state any age: taxpayers whose taxable income does not exceed maximum € 24,107.20 a deduction of 10.05% of the amounts paid in rent may be applied, taking into account a maximum which varies based of assessment may be:

– When the taxable amount is equal to or less than 17,707.20 per year: 9,040 per year

– When the taxable amount is between 17,707.20 and 24,107.20 per year: 9,040 euros less the result of multiplying 1.4125 by the difference between taxable income and 17,707.20 per year

– Autonomic with age limit: each community has its own deduction and need not exceed a certain age or a volume of income to benefit from it. for example, in the community of US, renters under 35 can deduct 20% of the amounts they have paid for a tax period by leasing your primary residence, up to a maximum of 840 $.

Requirements that may apply to this deduction are: be under 35 years on December 31; the tax base of the tax period does not exceed $ 25,620 in individual taxation, or $ 36,200 if it is a joint taxation; that the amounts paid for the rent of the residence exceeds 10% of the taxable income of the period of the tenant; and finally, the landlord of the apartment deposit the corresponding bond in the rental housing institute US and the tenant have a copy of the deposit slip


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