What deduction could you obtain if you rent a house of your property?
What you should do to obtain the 60% deduction in the Spanish Personal Income Tax? According to the delegate of the Spanish Association of Fiscal Advisor (AEDAF by its acronym in Spanish), Jordi Baqués, regardless of the duration of the rental contract, what matters is that the contract is under the Spanish Urban Rental Law.
Currently, due to the Decree-Law 7/2019 in urgent measures of dwelling and rental, the duration of the house rental contracts was extended from 3 to 5 years. This means that, at present, any house rental contract must last a minimum of 5 years; 7 years if the rent is held by a legal entity.
This fact divides the contracts into two categories, on one hand, permanent contracts like house rentals and, and on the other hand the holiday rentals. The fiscal benefits, like the 60% deduction, are only available for permanent contracts. In accordance with the declarations of the delegate of the AEDAF, the permanent characteristic of the contract is what makes the deduction possible.
This is the reason why a holiday rental is not entitled to the 60% deduction, disregarding the number of days a year the house was rented.
It should also be noted that the Decree-Law 7/2019 established different limits to regulate holiday rental.
B Law & Tax
International Tax & Legal Advisors