If a property owner rents out a dwelling, there is exciting news on the horizon. Since January 1 of this year, a series of changes to housing law have taken effect in order to deliver meaningful tax relief for 2025. The aim is clear: promote the rental of primary residences and, in doing so, help curb the persistent rise in rental prices across the country.
What do these tax changes involve?
In general terms, owning a rental home allows a deduction of 50% from the personal income tax, the IRPF. The intriguing part is that the lower the rent you offer to tenants, the greater the tax benefits you can reap as a landlord.
Additional incentives linked to lowering rental prices
If a reduction in rent is applied in zones deemed under pressure — definitions to be set by the autonomous communities — a bonus can be claimed in the income tax return, potentially reaching up to 70%. This rate applies when the tenant is a public entity or a non-profit organization and the property participates in the social rental program with a monthly rent below the level set in the national housing plan.
But there is more: if a property is first rented in a pressure zone, or if the tenant is between 18 and 35 years old, or if the tenant is economically vulnerable or part of a family with income below the Public Indicator of Multiple Economic Rent (IPREM), a deduction of up to 70% can be claimed in the income tax return.
Even better, if the rental property in a pressured zone is offered at a price at least 5% lower than a previously signed lease, a 90% reduction in the IRPF can be obtained. That means landlords can keep more of their earnings while making housing more affordable for tenants.
Benefits tied to recent reforms
For owners who have undertaken renovations in the two years before a new lease begins, a minimum 60% tax bonus on earned rents is available. This is a strong incentive for owners who have invested in improving property quality.
In summary, the housing law changes open up a wide range of opportunities for landlords. Deductions reaching up to 90% and additional bonuses for price reductions or recent renovations make investing in rental markets appealing. These provisions benefit owners and may help slow the escalation of rents, which is welcome news for everyone involved in the housing sector in Spain. Property owners are encouraged to take advantage of these opportunities and make the 2025 tax return notably more favorable.