The Government has erased the tax relief on personal income for rented accommodation in case of the new contracts signed from 2015 on, according to the blueprint project of the taxation reform revealed on Monday by the Treasury.
The authority justifies the step by necessity to introduce a genuine “fiscal equality of rental and ownership of the main residence”. Just as in case of the cancellation of the relief for an investment in property.
On the other side, the reform also reduces the tax benefits for landlords. Again, since the 1st January 2015, the property owners will enjoy a 50% tax exemption instead of the present 60%.
Finally, the new regulation will completely eliminate the total (100%) exemption for young tenants (under 30 years old).
Original article: Expansión (by B. Amigot)
Translation: AURA REE