Changes and Implications for Property Owners in the 2024 Income Tax Return

Real Estate Classroom

This article focuses on housing taxation in 2024, including changes in personal income tax (IRPF) and local taxes. Regarding property owners, it highlights:

• Rentals: It analyzes the new developments and tax implications for owners with rented properties.
• Imputation of real estate income: It addresses taxation of second homes or unrented properties available for use by their owners.
• Capital gain on transfer: It explains the rules for calculating and taxing gains from the sale of properties.
• Local taxation: It covers aspects such as the Property Tax (IBI) and municipal capital gains tax, which affect owners.

Tax Agency

This page of the Electronic Office focuses specifically on reductions of net income obtained from renting properties intended as housing in the 2024 tax return. It details the applicable reduction percentages (generally 50%, with possible increases up to 70% under certain conditions, such as qualifying renovations).

Click here to view the official information from the Tax Agency

Guide and Tips for Filing the 2024 Income Tax Return as a Property Owner

1. Identify your situation: Determine whether the property is your main residence, a second home, or rented. Each case has different tax treatment.
2. Main residence: If you have a mortgage, you may deduct certain amounts if you bought the home before 2013.
3. Second residence (not rented): You must impute real estate income, usually a percentage of the cadastral value.
4. Rented properties:
   • Income: Declare the full rental income received.
   • Deductible expenses: You may deduct certain necessary expenses to obtain income, such as mortgage interest (if applicable), repairs, maintenance, taxes (IBI), insurance premiums, community fees, etc.
   • Reductions: Apply the applicable reductions on the net rental income (generally 50%, or up to 70% if certain rehabilitation requirements are met).
5. Property sale (Capital Gain): If you sold a property in 2024, you must declare any capital gain or loss, calculated as the difference between the acquisition and transfer values. Exemptions may apply under certain conditions (e.g., reinvestment in a primary residence).
6. Review documentation: Keep all relevant documents at hand: rental receipts, deductible expense invoices, deeds of purchase and sale (if applicable), IBI receipts, cadastral references, etc.
7. Use Tax Agency tools: The Tax Agency website offers assistance programs (Renta WEB), simulators, and detailed information to help you file your return.
8. Consult a professional: At Finques El Pallars, we can help you. If you have questions or a complex situation, contact us with no obligation. Finques El Pallars is here for you.

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