The rental market in Spain has experienced a notable transformation in recent years, especially starting in 2021 with the reactivation of the economy after the effects of the pandemic.
However, this increase has triggered a significant imbalance between the supply of housing and the growing demand for habitual residence. This situation originates in a context where accessing home ownership has become increasingly difficult for many due to a combination of various factors:
- Job insecurity constitutes one of the main obstacles, since many people have temporary and unstable contracts with insufficient income, which makes it difficult to obtain mortgage loans.
- In turn, rising prices and the effect of inflation promote a scenario of financial uncertainty that compromises the purchase decision.
- The increase in interest rates has also aggravated this situation as loans become more expensive and the economic capacity of potential buyers is reduced.
As a consequence of this imbalance, there has been a significant increase in prices in the rental market, which has left the most vulnerable groups and, especially young people, without the possibility of accessing decent housing at affordable prices. affordable and reasonable.
In addition to the above, it should be noted that homeowners assume the risk of that the tenant stops paying the rent payments. This is one of the biggest fears that the potential landlord faces and the reason that leads to abandoning the idea of transferring the property to a third party.
Non-payment of rent insurance protects the landlord against financial problems that the tenant may experience and that prevent him from paying the rental payments, offering legal advice services and comprehensive legal protection against non-payment of rent.
In this context, the application of social and economic policies that regulate this problem. With the recent entry into force of Law 12/2023, of May 24, for the right to housing, tax incentives have been introduced for all those owners who choose to rent their homes. In this way, the possibilities of access to housing are increased and it contributes to reducing the existing gap between supply and demand.
Next April 3rd the Income Campaign starts and from Canarisk we want to inform of an important tax advantage from which all those clients who can benefit During fiscal year 2023, they have paid premiums for Non-Payment Insurance. Housing rental located in the Canary Islands.
REQUIREMENTS FOR THE TAX DEDUCTION YEAR 2023
- That the amount of the rent does not exceed €800 per month.
- That Contract period rental of housing with the same tenant is equal to or greater than one year.
- That the taxpayer declares in personal income tax the income derived from the rental income of housing as returns on real estate capital.
- That the landlord is up to date with his tax obligations and indicate in your personal income tax returns the NIF of the lessee and the cadastral reference number of the leased property.
- that has been established the deposit of the deposit referred to in article 36.1 of Law 29/1994, of November 24, on Urban Leases, in favor of the competent body of the Administration of the Autonomous Community of the Canary Islands*, within the period established for this.
*The competent body in this matter is the Canary Islands Housing Institute.
TAX DEDUCTION AMOUNT 2023
- It can be deducted up to 75% of the total premiums paid for Rental Nonpayment Insurance.
- The imaximum amount of this deduction will be € 150 per year both in taxation individually as well as jointly.
PRESENTATION
Those clients who meet the indicated requirements must complete the section "Additional information to the regional deduction for expenses on credit insurance premiums to cover non-payments of rent for housing leases (lessor's deduction) in the Canary Islands" of Annex B.9 of the declaration.
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