100% IRPF Tax Relief for Not Increasing Rent
The Government has announced today a key measure that directly affects rental property owners. From now on, those who renew their contract and decide to keep the rent unchanged for their tenant will be able to benefit from a 100% tax exemption on IRPF on rental income.
What does this measure imply?
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The property owner will be able to completely avoid taxation on the profit obtained from the rental.
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The tax relief aims to financially compensate the decision not to apply the permitted rent increases or the CPI adjustment.
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The Government’s objective is to curb price increases in more than 600,000 contract renewals expected in 2026.
Attention to regulatory changes
Alongside this tax measure, stricter restrictions and sanctions have also been announced to combat fraud in short-term rentals, as well as new limits on room-by-room rentals.
At Finques El Pallars, we are already analysing the fine print of the regulation to assess, in each specific case, whether it is more beneficial to apply the tax relief or to update the rental income in accordance with current legislation.
If you are a property owner with a contract approaching renewal, it is essential to carefully evaluate your options to avoid fiscal or legal risks.
Contact us and we will review your case on a personalised basis.
