In the publication of the Official State Gazette (BOE) of May 25, 2023, Law 12/2023, of May 24, which establishes the right to housing, has been enacted. This law includes in its second and third final provisions fiscal measures that impact personal income tax (IRPF) and real estate tax (IBI), respectively.
As regards Personal Income Tax, the reductions derived from the income from real estate are modified. The positive net yield will be reduced by these percentages:
– The discount will be 90% if a new lease contract is formalized by the same lessor in a stressed residential area (as established by the Ministry of Transport, Mobility and Urban Agenda), with a reduction of at least 5% compared to the previous contract, once the annual update clause has been applied.
– It will be 70% when: the tenant is between 18 and 35 years old and is renting for the first time a dwelling located in a stressed residential area of the market; or if the tenant is a Public Administration or non-profit entity and allocates the dwelling to social rent below the rent established in the state housing program, or allocates it to housing for people in a situation of economic vulnerability, or if the dwelling is under a public housing program with a limitation on the rent established by the competent Administration.
– If the dwelling has undergone a rehabilitation process that concluded in the two years prior to the signing of the lease, a discount of 60% will be applied.
– In any other case, a 50% discount will be applied.
Regarding IBI, unoccupied property is defined as property that remains vacant continuously for more than two years, as established in the requirements, tests and procedures established by the tax ordinance. This will apply to owners who own four or more properties for residential use.
In addition, the law establishes the option of adjusting the surcharge currently set at 50% of the net IBI quota for permanently unoccupied residential properties. This surcharge will be applied to dwellings vacant for more than 2 years, with a minimum of 4 dwellings per owner, unless there are justified reasons for temporary vacancy.
The surcharge can reach up to 100% when the period of vacancy exceeds 3 years, and can be modulated according to the time of vacancy. The municipalities may increase it by up to an additional 50 percentage points in the case of properties belonging to owners with two or more unoccupied residential properties in the same municipality. In short, it establishes a possibility to adjust the current surcharge of 50% of the IBI liquid quota, which can reach 150%, depending on the time of unoccupation and the number of unoccupied dwellings of the same owner in the municipality.
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