The fiscal reform affecting INCOME TAX 2015 has modified the tax benefits for tenants (renters) and landlords (owners). Here are the most important changes:

1.For tenants
The national deduction for renting housing is no longer applicable for those who signed their lease on or after 1 January 2015.

Tenants who signed before the last day of 2014, as long as the lease is still valid and the individual still meets the requirements regarding the maximum income, may deduct:

• 10.05% of the amount paid with a limit of 9,040 per year for those earning less than 17,707.2 euros.
• For those earning between that amount and 24,107.20 euros each year, the deduction decreases progressively, and is no longer applicable for those earning over 24,107.20 euros.

2. For landlords
The 100% deduction for tenants under 30 no longer applies.

Now, landlords can only apply one deduction of 60% of the net profit for leasing the home, regardless of the age of the tenants. Interest on loans linked to the home.

• Taxes that affect profits or the home: property tax (IBI), cleaning fees, garbage collection, lighting, etc., as long as they are not penalizations.
• Costs of formalizing leases and legal defense.
• Costs of upkeep and repair (not including those to expand or improve the home): Those carried out regularly in order to keep the home in proper working order, such as paint, stucco or repairing building systems.
• Also replacing elements, such as heating, elevators, security doors or other.
• Insurance policies (covering civil responsibility, fire, robbery, broken glass or other similar). Services or utilities (power, water, gas, telephone).

SOURCES: Alting and Cinco Días