Can the rent be deducted in the 2021 income statement? What requirements must be fulfilled? Do they vary depending on the autonomous community of residence? These are the most common questions, especially from young tenants (being under 35 is the conditions par excellence), when it comes time to make the income statement. In addition to age, not exceed a general tax base limit (in the Community of Madrid it is essential that this is less than 25,620 euros) and that the tenant (landlord or owner of the apartment) has deposited the deposit in the Housing Institute autonomy in question are other of the most common requirements.
However, Antonio Gallardoan expert from Banqmi, iAhorro’s financial comparator, adds another condition that many filers do not know they have to meet: “The property transfer tax (ITP), in addition to when a property is purchased, is also paid for the constitution of a lease and must be paid by the tenant of the home & rdquor ;. Of course, he clarifies that this only affects homes, since those who rent a premises (or a home that is going to be used as a work office) what they must pay is VAT.
What happens if the ITP is not paid?
As explained in the General Tax Law, the Treasury has a maximum period of four years to claim any element that you consider incorrect in the declaration or request any data or document that it deems appropriate. For this reason, if a tenant deducts the rent this year without paying the property transfer tax and documented legal acts in order, the Tax Agency could make him return the total amount of said deduction (which can amount to up to 1,000 euros depending on the community of residence), plus the interest of the years that have passed. That is, in this case, he would have until 2025 to claim.
“The lack of knowledge on the part of the tenants and landlords of the existence of this tax is due to the fact that many of the contracts that are made for the rental of a flat are not entirely legal and also because some autonomous communities ignore these payments. being the amount associated with them relatively low & rdquor ;, regrets the Banqmi financial expert. However, although for years the Administrations have not affected its collection, several communities have already begun to claim the collection of this rate retroactively.
One of the factors that makes citizens unaware of their obligation to pay this tax is the little information that is given about it. For example, the Junta de Andalucía explains only on its housing portal that stamped paper to pay the ITP can be bought at tobacconists. The Community of Madrid, for its part, expands this information a little further and indicates that the tax is paid for the constitution of a lease and that it must be paid by the tenant.
How much do you have to pay? The amount is controlled by the communities, however, the State sets an amount (which can be consulted in article 12 of the royal legislative decree 1/1993) and that the autonomies can use as a base. Of course, each one is free to set the amount they want, which is calculated by applying a tax scale on the total amount to be paid for the lease during the whole year.
Who is exempt from paying it?
In addition to tenants of premises or offices, for example, in the Community of Madrid, lease contracts signed after December 18, 2018 are exempt from paying this tax, as indicated by the General Directorate of Taxes autonomy, as long as the annual rent agreed with the lessor is less than 15,000 euros (about 1,250 euros per month).
Of course, explains Antonio Gallardo, “even if you go out to pay zero euros, there is an obligation to present the receipt, indicating that you are exempt, and attaching a copy of the lease & rdquor ;. This tax can be settled through forms 600, 620 or 630 of the Tax Agency that each autonomous community has adapted to its needs.