This special regime is about the Corporate Tax for those companies involved in rental housing. This regime indicates that you may obtain a tax deduction of 85% in the tax rate, in other words, this company would be taxed at an effective rate of 3.75%.
Special tax regime for rental housing in Spain
Certain requirements should be met:
- To begin with, companies must have built, promoted or acquired all those homes that intend to rent.
- This renting activity must be the main one, being compatible with other complementary activities and with the transmission of property, as long as it keeps the properties at least three years in the portfolio.
- The minimum number of homes rented or offered for rent cannot be less than 8.
- Accounting is important to be done for each home separately, because the profitability is calculated per property.
To be able to apply for this regime, the Tax Office must be expressly notified. Once it has been communicated, the special regime will be applied in the tax period that ends after said communication and in the successive periods that end before the waiver of the regime is notified to the Tax Office.
Small companies have to choose between to apply this regime or the incentive scheme according to their own type of company, whose billing is limited to 10 million euros by the Article 101 of the Corporate Income Tax Law.
More details about special regime for rental housing
The application of this special regime for rental housing is incompatible with some other tax regimes. As we have said, the return is calculated for each property so that the subsidised rent derived from the rental of each home will be integrated by the full income obtained by said home and reduced it in the fiscally deductible expenses directly related to the obtaining of said income and in the part of the overhead costs that correspond proportionally to the aforementioned income.
The application of this regime requires an exhaustive knowledge of tax regulations and lease contracts, so we recommend always to seek the advice of a law company specialized in these matters to ensure that the strict compliance of the regulation is followed and not to risk especially with possible complementary liquidations of the Tax Office.