Rental income
Written by Contact Us

How are rental income declared?


bequeathed the moment of the 2018 Income Tax Return. Housing has a special role, especially if you have a flat for rent. We tell you how the rental income is declared in the IRPF What are considered real estate capital returns? Rustic or urban property from which a rental income is obtained, unless the lease is made as an economic activity (for which a contracted person must have).

What is there to declare?

In this section you must include the total income in the section of Real estate capital yields. To calculate the amount on which taxes are paid, deductible expenses are subtracted from the amount received and the benefit is obtained, which is what is paid.

Important. When the property that is rented is a house, of the total of the net performance for rent, 60% is exempt.

What can be deduced:

  • Annual depreciation of the property: 3% on the highest of these values: acquisition cost or cadastral value. Very important: the value of the land must be excluded.
  • Interest on the mortgage loan
  • Conservation and repair expenses. The expenses destined to the extension or improvement of the property are not deductible.
  • Taxes and fees:
  • Home insurance
  • Community expenses, surveillance, goal ...
  • Expenses derived from the formalization of the rental agreement
  • Note with the incomes pending collection if any.

House rented to a family

Hacienda says that, if it is up to third grade included, the computable yield must not be less than the amount resulting from: 2% of the cadastral value that corresponds to the property in each tax period. Or 1,1% of the cadastral value in case they have been revised or modified.

Tourist rental

The mechanism is similar to the previous one. But in this case, it is not exempt from the 60% foreseen for the rented dwellings and intended for habitual residence. Plus, the period in which the property has not been occupied, must be declared as imputed income.

In our collaboration on Invertia, apart from breaking down all the previous sections, you can see some example that can help you.

And if you need to solve more doubts, enter the 2018 Income Handbook in chapter 4º Real Estate Capital Returns.


More information of the sector in our Blog y Press Room

keys of the real estate market
Written by Contact Us

What factors can depreciate a home?


n the value of a home is taken into account. location, state, orientation, height and endowments of the building and the area (swimming pool, sports areas, security, schools, transport ...) But there are factors that can depreciate a home and, sometimes, are not taken into account.

Hence the need to analyze the market well so as not to buy problems, which does not prevent them from arising over time. The neighborhoods change and the circumstances also. For better or worse.

We tell you some factors that you must control:

  • Conflicting neighbors
  • Normal areas that are degrading and becoming conflicting.
  • The occupations managed by mafias degrade the zones. An aspect that is closely linked to the previous one.
  • Business changes in the basement of a building or neighborhoods that become noisy.
  • Relocation of conflicting families
  • Bus stations too close can reduce the value of homes
  • Social reintegration center near the property.
  • Having a park that, in principle is magnificent, can end up being a problem if it becomes a problematic area with improper uses.

What is clear is that depreciation does not only occur in a home, it affects the environment and that the closer the problem is, the greater the depreciation. An example, if there is a bar or disco in the low, the first would be the most affected and the last, much less.

And which ones help to appreciate an area?

On the other hand, there are positive aspects that can help appreciate housing, and that are added to those that we already have in our Press room.

  • Quality schools / creation of educational centers
  • The gentrification of a degraded area that is completely renewed, a clear example is the Chueca area in Madrid
  • Improvement of shops and rehabilitation of buildings
  • Semi-industrial areas that change and become residential, such as Arganzuela in Madrid
  • Increase or improvement of neighborhood endowments. Let a subway station arrive.

And related to the subject, we leave a link to a report in El Country Business with a suggestive title: For all this you can not buy your dream house

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