Housing is one of the most common assets in each income campaign. Broadly speaking, all taxpayers, whether they own the property where they habitually reside or rent a house to third parties, they must declare for this type of property. Only those cases in which the citizen is proprietary node, that is, when you cannot enjoy the property because the usufructuary is in it, or the owners of unbuilt lots. But beyond these anecdotal cases, housing must be included in the statement of income for informational purposes, even if it is a habitual residence and does not generate income.
The deductions for home purchase were eliminated in 2013 in one of the adjustment plans of former President Mariano Rajoy. In other words, only previously signed transactions can enjoy this bonus. As those initialed since then lack this tax advantage, fewer and fewer taxpayers can benefit from this aid.
Owners who needed a mortgage to be able to afford the purchase can deduct both the capital of the loan and the expenses related to the insurance associated with the mortgage itself, such as life insurance.
However, the limit of the base on which the deduction is calculated is 15% of what has been paid in the year for the home over a maximum of 9,040 euros. In other words, in the best of cases, the taxpayer will be able to deduct 1,356 euros. In parallel, one can also deduce the amounts destined to carry out works and installations to adapt the taxpayer’s habitual residence “due to disability”, according to the Tax Agency. In this case, the limit is 12,080 euros per year.
It should be remembered that only the proportional part of the home that corresponds to each owner can be included in the income statement.
Within the property section, it is also necessary to take into account the homes that function as a second residence, that is, those that do not constitute the owner’s habitual residence. In this case, as explained by TaxDown, the assets function in the declaration as if they were one more income that is added to the rest of the taxpayer’s income.
The amount is calculated from the cadastral value of the property and the proportion of this that belongs to the taxpayer in question. In other words, to obtain the amount, the cadastral value must be multiplied by the corresponding part of the property and by 1.1% if it is revised, or 2% if it is not.
In the wealth tax it should be remembered that the habitual residence is exempt with a maximum amount of 300,000 euros. As explained by the Tax Agency, the exemption isThe right of ownership, full or shared, or a real right of use or enjoyment of it, such as usufruct, use or the right over a room, will apply to the taxpayer who holds the habitual residence.
The income generated thanks to the rental of a property must also be included in the income statement, whose campaign began on Wednesday, April 6, and runs until June 30. In this case, all the expenses necessary to obtain the rent can be deducted, up to the limit of the income obtained. Some examples of disbursements that would be included in the declaration are the IBI, home insurance, community expenses or municipal fees for the garbage collection service.
However, as is the case with other owned homes, also in these cases it is necessary to declare for the part of the property that belongs to the taxpayer. From TaxDown they illustrate it with a practical example: “If you have 50% ownership and you have earned 12,000 euros with the rent, you will have to include only 6,000 euros in your declaration. The same goes for expenses. If you have had community expenses of 500 euros, you will have to include 250 euros in your statement.
And what about the tenants? In this case, it is impossible to detail the particularities and deductions that this group can benefit from because the discounts are not uniform in Spain, but depend on each autonomous community. All these deductions, together with others linked to the purchase of a home, are available in the official website of the Tax Agency.
As a general rule, at the state level, all tenants with contracts prior to the year 2015 may apply reductions of up to 10.5% for the rental income, with the exception that the base does not exceed 9,040 euros.
The sale of the home is taxed as a capital gain due to the difference between the sale price and the purchase price. The rate ranges between 19% and 23% until 2020, and up to 26% from 2021. In this case, all expenses paid for the sale of the property can be included, such as the property registry, the notary or the possible commissions of the real estate agency. The sale, however, is exempt if the previous owner is over 65 years old or if with the money obtained from the transaction he buys another habitual residence within two years.
One of the most important novelties this year are the deductions for having carried out rehabilitation works designed to improve the energy efficiency of the property. This aid can be given mainly thanks to the European recovery fund that feeds the Recovery, Transformation and Resilience Plan designed by the Government and validated by the European Commission and Council. It should be remembered that, although they come into force in this campaign, only interventions that began on October 6 can enjoy this aid.
For works in the main residence that reduce the demand for heating and cooling by 7%, something that can be achieved with high-performance windows, a 20% deduction is opted for, with a maximum of 5,000 euros per home.
From here, those that reduce non-renewable energy consumption by 30% or improve their energy rating to A or B may benefit from a 40% deduction, with a maximum of 7,500 euros. In the last great case, a deduction of 60% and a maximum of 15,000 euros is reached for energy rehabilitation actions in residential buildings where consumption falls by 30% or certification A or B is achieved.
As a novelty, they remember from TaxDown, in the case of those affected by the volcano of La Palma, the right to regional deductions in personal income tax linked to the habitual residence is maintained without prejudice to those that have been destroyed by lava.