Legal Deductions In Income Tax For Property Transactions In Cantabria
In Cantabria laws have been passed that provide tax incentives for certain categories of residents of the region in an effort to promote activity in the property market. These are as follows:
1) Purchase and renovation of property in areas suffering depopulation
The taxpayer purchasing or renovating a property in an area of depopulation may deduct 10% of the money invested up to a maximum of 300 annualy, in the case of a second home and 600 annualy in the case of a principal private residence, where the following criteria are fulfilled:
a) Each taxpayer may only benefit from this tax break with regard to one property,
b) The property must be situated in an area officially declared to be an area of depopulation (as per Order Hac/30/3010).
2) For renting the principal private residence
A taxpayer may deduct 10% of monies paid towards the rental of their principal private residence up to a maximum of 300 annually assuming that the provisos that follow are complied with:
a) The taxpayer should be either under thirty-five years of age or over sixty-five years of age. However this requirement does not apply to anyone who has a disability legally determined to be to a degree of 65% or more.
b) The income during the relevant tax period may not exceed 22,000 (before subtratction of the minimum personal reduction or that for dependents)for individuals or 31,000 where there is a joint declaration of taxes.
c) The amount of rent paid must be more than 10% of the taxpayer's annual income
In the case of a joint declaration, the maximum deduction shall be 600 though at least one person must comply with the above criteria.
3) For purchase of a principal private residence
There is only a deduction available as per the new state regulations i.e. those with income below 24,107 may claim the state portion of the deduction. The only deduction availble for the purchase of the principal private residence at the autonomous community level is as per 1) above.
The deduction available at state level has a maximum of 7.5% for those on an income of 17,707 or less and gradually falls to zero as the income approaches 24,107
For anyone with issues with mortgage payments in Spain:
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1) Purchase and renovation of property in areas suffering depopulation
The taxpayer purchasing or renovating a property in an area of depopulation may deduct 10% of the money invested up to a maximum of 300 annualy, in the case of a second home and 600 annualy in the case of a principal private residence, where the following criteria are fulfilled:
a) Each taxpayer may only benefit from this tax break with regard to one property,
b) The property must be situated in an area officially declared to be an area of depopulation (as per Order Hac/30/3010).
2) For renting the principal private residence
A taxpayer may deduct 10% of monies paid towards the rental of their principal private residence up to a maximum of 300 annually assuming that the provisos that follow are complied with:
a) The taxpayer should be either under thirty-five years of age or over sixty-five years of age. However this requirement does not apply to anyone who has a disability legally determined to be to a degree of 65% or more.
b) The income during the relevant tax period may not exceed 22,000 (before subtratction of the minimum personal reduction or that for dependents)for individuals or 31,000 where there is a joint declaration of taxes.
c) The amount of rent paid must be more than 10% of the taxpayer's annual income
In the case of a joint declaration, the maximum deduction shall be 600 though at least one person must comply with the above criteria.
3) For purchase of a principal private residence
There is only a deduction available as per the new state regulations i.e. those with income below 24,107 may claim the state portion of the deduction. The only deduction availble for the purchase of the principal private residence at the autonomous community level is as per 1) above.
The deduction available at state level has a maximum of 7.5% for those on an income of 17,707 or less and gradually falls to zero as the income approaches 24,107
For anyone with issues with mortgage payments in Spain:
real estate lawyer in spain
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