Is it possible to deduct rent on the 2021 income statement? What requirements must be met? Do they vary depending on the autonomous community of residence? These are the most common questions when it comes time to file an income tax return, especially from younger tenants (being under 35 is an excellent condition). In addition to age, not exceeding a general tax bracket (in the Community of Madrid it is essential that this is less than €25,620) and the tenant’s (landlord or flat owner) deposit Housing Institute That autonomy is another of the most common requirements.
Again, Antonio GallardoAn expert from Banqmi, iAhorro’s financial comparator, adds another condition that many applicants don’t know they have to meet: estate transfer tax In addition to when a property is purchased, the ITP is also paid for establishing a lease and must be paid by the tenant of the home. Of course, he explains that this only affects homes, because those who rent a building (or a house to be used as a business) have to pay VAT.
What happens if ITP is not paid?
As described in the General Tax Law, the Treasury has a maximum period of four years to file a claim. any item you think is wrong making a statement or requesting any data or document it deems appropriate. Therefore, if a tenant deducts their rent this year without paying the property transfer tax and documented legal proceedings in turn, the Tax Office can refund the total amount of the deduction (up to 1,000 Euros depending on the rent). community of residence), plus interest from past years. So, in this case, He would claim by 2025.
“The fact that tenants and landlords are not aware of the existence of this tax is due to the fact that many of the contracts for renting an apartment are not completely legal, and also that some autonomous communities ignore them. payments the amount associated with them relatively low,” says Banqmi financial expert. However, although it did not affect the collection of Administrations over the years, some communities have begun to demand the collection of this rate retrospectively.
One of the factors that makes citizens unaware of their obligation to pay this tax is the scarcity of information on this subject. For example, Junta de Andalucía explains that only on the housing portal stamped paper to pay ITP can be purchased at: tobacconists. The Community of Madrid, for its part, expands on this information a little further and states that the tax is paid for a lease and must be paid by the tenant.
How much do you have to pay? The amount is controlled by the communities, but the State sets an amount (this can be consulted in Article 12 of the Convention). royal legislative decree 1/1993) and that the autonomies can use as a base. Of course, each is free to determine the amount he wishes, which is calculated by applying a tax scale over the total amount payable for rent during the year.
Who is exempt from paying?
For example, lease agreements signed after 18 December 2018, in addition to tenants of buildings or offices in the Community of Madrid, are exempt from paying this tax as specified in the Agreement. General Directorate of Taxes annual rent agreed with the lessor, 15,000 Euros (approximately 1,250 Euros per month).
Of course, explains Antonio Gallardo, “Even if you go out to pay zero euros, you have to present the receipt that shows you were there. exemptand attaching a copy of the lease agreement. This tax can be paid through forms 600, 620 or 630, which the Tax Office adapts to the needs of each autonomous community.