How to declare the rent of a flat in 2021-2022

Housing prices will fall by 2023

MeiT Team

6 April 2022

The 2021-2022 tax return campaign has begun. The calculations and doubts are back: Will I get money back? Individual or joint tax return? What are the IRPF brackets? What expenses are deductible? There are many tax deductions at state and regional level, so taxpayers should pay attention to pay less tax. Some of these deductions are linked to renting a home.

To begin with, it is worth remembering that in 2015 the state deduction in personal income tax was abolished, although it is still in force for those rentals with a contract prior to 1 January 2015. In this case, the taxpayer has a transitional regime that allows them to continue enjoying the deduction under the same terms and conditions existing on 31 December 2014.

In the case of having a rental contract signed before 2015, the taxpayer is entitled to a deduction of 10.05% on the rents paid, provided that their taxable base is less than 24,107.20 euros per year. The taxable base of the taxpayer is formed by the sum of the amounts entered in boxes [0435] (general taxable base) and [0460] (savings taxable base) of the tax return.

Below is a breakdown of the deductions in Madrid and Catalonia for renting a primary residence in Personal Income Tax (IRPF).

 

MADRID
  • Amount and maximum limit of the deduction: 30% of the amounts paid for the rental of the main residence in the tax period, with a limit of 1,000 euros.
  • The taxpayer must be under 35 years of age, although the deduction can be applied to taxpayers up to the age of 40 provided that they have been unemployed and have had family responsibilities during the tax period.
  • A double limit is required, one to be met by the taxpayer and one to be met by the family unit.
  1. The sum of the general and savings tax bases of the taxpayer may not exceed 25,620 euros in individual taxation or 36,200 euros in joint taxation.
  2. In the family unit, the sum of the general and savings tax bases of all the members of the taxpayer's family unit may not exceed 60,000 euros.

 

CATALONIA

Deductions for taxpayers under 32 years of age, people unemployed for more than 183 days, with a degree of disability equal to or greater than 65%, widowed and over 65 years of age. The sum of the taxpayer's general and savings tax bases minus the personal and family minimum, minus the amount in the box on the tax return, must not exceed 20,000 euros per year. In addition, the amounts paid for rent exceed 10% of the taxpayer's net income.

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