Find out about the deductions available to taxpayers in the Canary Islands for the 2023 income tax year.
The 2023 income tax campaign begins this year a little earlier than usual, specifically on April 3, according to the taxpayer’s calendar for 2024, the date from which the deadline for filing the tax return online will open.
Focusing on the region that concerns us, what deductions are available to taxpayers in the Canary Islands for their principal residence? What housing expenses can be deducted in Fuerteventura?
We grant you access to the Income Tax Manual with the deductions for main residence in the Canary Islands for the 2023 Income Tax year. In it, you will find all the information you need about housing deductions in the Canary Islands.
However, below we provide you with a summary of each of them.
Regional deductions on principal residence in the Canary Islands
Within the autonomic deductions in habitual residence in the Canary Islands for the fiscal year of the Renta 2023, we find the following:
Deduction for investment in principal residence
The Canary Islanders will be able to deduct from the amounts paid in the tax period for the acquisition of a primary residence, the percentage that corresponds according to the following table:
| Amount of general taxable income and savings tax base | Deduction percentage |
|---|---|
| Less than 16,500 euros | 5% |
| Equal to or more than 16,500 euros and less than 33,000 euros | 3,5% |
The sum of the amount of this deduction, together with that of the regional deductions: “For amounts allocated by their owners to the restoration, rehabilitation or repair of real estate declared of Cultural Interest”, “For investment in primary residence” and “For energy rehabilitation works of the primary residence”, may not exceed 15% of the total regional tax liability, in the box below. [0546] of the declaration.
Deduction for energy rehabilitation works and renovation of the primary residence
12% of the amounts destined to energy rehabilitation works in the habitual residence with a maximum amount of 10% of the regional tax liability, box [0546]. In addition, the sum of the amount of this deduction plus the amount of the regional deductions for: “Amounts destined by their holders to the restoration, rehabilitation or repair of real estate declared of Cultural Interest”, “Investment in habitual residence” and “Works of adaptation of the habitual residence by people with disabilities”, may not exceed 15% of the total regional tax liability, box [0546] of the declaration.
Deduction for works of adaptation of the habitual residence by disabled persons
14% of the amounts paid during the tax period for works and installations for the adaptation of the habitual residence due to disability. The sum of the amount of this deduction, together with that of the regional deductions: “For amounts allocated by their owners to the restoration, rehabilitation or repair of real estate declared of Cultural Interest”, “For investment in primary residence” and “For energy rehabilitation works of the primary residence”, may not exceed 15% of the total regional tax liability, in the box below. [0546] of the declaration.
Deduction for renting a primary residence
24% of the amounts paid in the tax period for the rental of the habitual residence with a maximum amount of 720 euros per year provided that:
- The sum of the general taxable income and the savings taxable income does not exceed 22,000 euros in individual taxation or 33,000 euros in joint taxation.
- That the amounts paid for rent exceed 10% of the general taxable income of the taxpayer, deducting the amount, if any, of the subsidies received by the lessee for this concept.
Deduction for renting a primary residence linked to certain dation-in-payment transactions
25% of the amounts paid in the tax period for the rental of the main residence with a maximum deduction amount of 1,200 euros in both joint and individual taxation. This deduction may only be applied when the transfer of the principal residence is made by the owner in favor of a creditor financial institution or a real estate subsidiary because the owner cannot meet the payment of the mortgage loan or loans granted for the acquisition, provided that the transferor continues to reside in the home through a lease with option to purchase contract signed by the bank.
To qualify for this deduction, the sum of the general taxable income and the savings taxable income may not exceed 24,000 euros in individual taxation and 34,000 euros in joint taxation.
75% of the expenses paid for credit insurance premiums that partially or totally cover the income that the taxpayer receives for the lease of a property with a maximum amount of 150 euros per year in both joint and individual taxation.
Requirements to access the deduction:
- The lease agreement with the lessee is signed for a minimum term of 1 year.
- That a deposit has been made in favor of the Administration of the Autonomous Community of the Canary Islands.
- That the taxpayer declares the income derived from the rental income of the dwelling as income from real estate capital in the Personal Income Tax.
- That the lessor is up to date with his tax obligations and provides the NIF of the lessee and the cadastral reference number of the leased property in the tax return.
- The monthly rent does not exceed 800 euros.
We remind you that at Destiny Home, we have prepared a PDF where you will find all the details about deductions for main residence in the Canary Islands for the Income Tax 2023. Download the Income Tax Manual 2023 and find out how much you can deduct in this year’s Income Tax Return.
