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Tax relief in Madrid this 2023 – New measures

Desgravar el alquiler en Madrid 2023 - Nuevas medidas - Geräh Real Estate Partners artículo

There is little left for the income statement, on April 11. If you are the owner of a rental home, we will explain the latest on how to deduct the rent of your property in Madrid before this April 11.

The new to deduct rent in Madrid in 2023

Today we will focus on Madrid because at the national level there are not many changes, although many autonomous communities, including the Community of Madrid, did introduce new measures for rent deduction in 2023.

The Community approved a law where new ways of deducting rent in Madrid in personal income tax are introduced, which could benefit around 700,000 Madrid taxpayers.

It is currently in parliamentary processing, but I know it will be approved before the income statement in 2023.

What do the new measures to deduct rent in Madrid include?

The new tax savings include new costs where rent is referenced.

Among them we have the 10% deduction for expenses caused by the rental of homes. Where the expenses involved in the repair and maintenance of a property for the owners are included.

«10% deduction for expenses caused by the rental of the house»

Tax relief in Madrid 2023 - New measures - Geräh Real Estate Partners

Requirements to deduct rent in Madrid in 2023

Rent deduction for Owners

If you are an owner and want to know what you need for your rent deduction, meet the following requirements:

  • The property may only be used as the tenant’s home.
  • It cannot be rented for offices and companies.
  • If the tenant uses the home only as a work area.

Tenant Rent Deduction

As a tenant you can access rental aid if you meet these requirements:

  • Reside in the Community of Madrid.
  • Be under 35 years of age before December 31 of the previous year.
  • If you are between 35 and 40 years old and have at least two dependents.
  • Your individual income does not exceed 25,620 euros per year.
  • Your total income does not exceed 36,200 euros per year.
  • The sum of the tax bases of the members of the family unit does not exceed 60,000 euros.
  • Your annual rental expense must exceed 20% of your tax base

Gustavo Gerendas, CEO of Geräh Real Estate Partner explains how to reduce 60% in personal income tax on home rentals in this video.

How to make the rent deduction in Madrid in 2023?

Unrecording the rental in Madrid can be complicated, but here we show you which way to follow to facilitate the process.

Steps to follow if you are an owner.

The owners must make the Income statement as follows:

  • Go to the draft of your Income Statement on the page of the Tax Agency.
  • Go to Section C of Real Estate and upload all the tax information of the home you have for rent.
  • Add the full amount that you enter for rent throughout the year.
  • Deduct the expenses you can by checking the boxes.
  • Add 60% reduction to final expenses.
  • Place the final income of the rent to add to the general base of the IRPF.

Steps to follow if you are a tenant.

For tenants they must follow the following steps:

  • Go to the draft of your Income Statement on the page of the Tax Agency.
  • Go to the “Autonomous Deductions” section and add your information as well as that of the owner of the property.
  • Check the boxes that you can or will deduct.
  • Confirm the draft and you’re done.

We at Geräh Real Estate have Comprehensive Rental Management. A service with Guaranteed Income month by month, Non-payment insurance, 0% delinquency, selection of tenants, advice and protection against incidents and property damage. If you want to know more click here. 

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Rent your house, apartment, or villa at the best price and with NON-PAYMENT INSURANCE, INCIDENTS and GUARANTEED INCOME – Click here for more information

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