If you own a rented house in Fuerteventura, you must declare the income you receive from your property in your Income Tax Return. However, there are a number of deductible expenses that you can include in your income tax return that will help you pay less for the income received.
In this article we will explain which are the deductible expenses for renting a house in Fuerteventura that you can include in your income tax return.
*In addition, we remind you that you have at your disposal the Renta 2023 Manual. A PDF with all the housing deductions available in the Canary Islands.
What can the owner of a rented apartment in Fuerteventura deduct?
For the Tax Agency, deductible rental expenses are those that owners need to assume in order to obtain an income from their property. Although there is no specific list of them, the following concepts are generally accepted by the Internal Revenue Service:
Repair and maintenance expenses
The owner will be able to deduct the expenses derived from possible reforms carried out in the rented housing related to painting, replacement of elements and repair of facilities. This deduction will have a maximum amount related to the rent received.
Supplies
Expenses for gas, electricity, water and other supplies related to the rented property may also be deducted. Although these expenses are usually passed on to the tenant, the landlord will be able to deduct them if he decides to assume them. In this case, you would be entitled to 100% of the invoice.
Furniture and fixtures
The furniture and other belongings that the owner rents together with the house are also tax deductible, although not in their totality or all at once. The lessor may deduct 10% of the value of the furniture for a maximum period of 20 years provided that:
- Do not include fixed furniture such as windows, frames or doors.
- The property must remain in the dwelling for a minimum of one year.
Amortization
The owner may depreciate 3% of the acquisition value of the property or the cadastral value (whichever is greater) for the deterioration of the property and loss of value.
The premiums of insurance contracts for non-payment of rent and homeowner’s insurance are included as deductible expenses for renting a house. The home insurance includes liability insurance, fire insurance, theft, glass breakage, etc.
Taxes
Local taxes associated with the home will also be deductible. We are referring to:
- Property and Real Estate Tax (IBI).
- Sewerage rates.
- Garbage collection fees.
- Lighting rates.
Third party services
As deductible expenses for the rental of a house in Fuerteventura will include the services provided by professionals to both the community and the owner. We are referring to expenses for the maintenance of facilities, security companies, gardening professionals, property management, etc.
If the rented property has a parking space or storage room, the lessor may also deduct all expenses related to its maintenance: electricity, water, cleaning, insurance….. provided that these services are contracted separately from household supplies.
Real estate agency fees
On the other hand, if the lessor has contracted a real estate agency for the integral management of the rental, it may also be included in the Income Tax Return as a deductible expense. The monthly fee paid to an agency to act as an intermediary in the collection of the monthly rent will be the same.
“The services offered by Destiny Home for the management of long term rentals in Fuerteventura may be included as deductible expenses in the income tax return”.
Financing costs
The interest generated by the monthly installment associated with a mortgage for the purchase of a rented property counts as deductible expenses for the rental of a house in Fuerteventura.
Energy certificate
The energy certificate has been mandatory since June 2013 for all homes to be sold or rented. The cost of obtaining it will also be deductible in income tax and must be included in the section ‘other deductible expenses of rental housing’.
Now that you know the deductible expenses for renting a house in Fuerteventura, you may be interested in completing your information with all existing deductions in the Canary Islands related to permanent residence. For this, in Destiny Home we have prepared a PDF where you will find all the housing deductions that you can access in your Income Tax Return.
As deductible expenses for renting a house you can include repair costs, utilities if you assume them, furniture, depreciation of the property, home insurance premiums, local taxes such as IBI, and expenses for third party services. It is essential that these expenses be directly related to the rental of the property and duly justified.
No, furniture and fixtures expenses are not immediately fully deductible. You can deduct 10% of their value annually, for a period of up to 20 years, as long as the assets are not fixed and remain in the property for at least one year.
When renting a house you can deduct taxes such as Real Estate Tax (IBI), sewerage, garbage collection and street lighting, as long as they are linked to the rented property.
Yes, the cost of the energy certificate is deductible if the property is rented after June 2013. This document is mandatory to rent or sell a property and its cost can be included in the deductible expenses of the rent.
