What expenses can you deduct if you have a rented apartment?
If you own a rental property in Catalonia, this is for you! With the new Housing Law now in effect, there are significant tax benefits that can help you reduce your personal income tax (IRPF) bill. Let’s take a look at what you can deduct and how the reduction system works—it can go up to 90% of the net rental income.
When you rent out a property, you’re not required to pay tax on all the income you receive. The Tax Agency allows you to deduct a range of rental-related expenses, so you only pay tax on the net profit. This can lead to significant savings.
These are the main deductible expenses for landlords:
🏦 1. Mortgage interest
If you used financing to buy the home, you can deduct the interest, not the capital.
🔧 2. Repair and maintenance costs
Deductible expenses to keep the home habitable:
Plumbing, electricity, or appliance repairs
Painting and small fixes
Replacing items like boilers or taps
🔸 Upgrades or renovations that increase the property's value are not deductible.
🏢 3. Property taxes and local rates
You can deduct municipal taxes like IBI or waste collection fees.
🧾 4. Community (HOA) fees
Ordinary and extraordinary homeowner association fees are deductible if they maintain the building.
🔐 5. Property insurance
Home insurance, non-payment insurance, and liability policies are deductible.
📉 6. Property depreciation
You can deduct 3% annually of the cadastral value (excluding land) as depreciation.
🧑💼 7. Real estate agency fees
Commissions paid to real estate agencies are deductible management costs.
💡 8. Utilities (water, electricity, gas, internet)
If you pay the utilities as the landlord, they are deductible.
🧹 9. Other related services
Cleaning between tenants
Energy or habitability certificates
Legal costs, contract drafting, lawyer fees
➡️ Important: All expenses must be supported by invoices and actually paid during the declared fiscal year.
📊 Tax benefits for renting your property (2024–2025)
✅ 90% reduction
Property in a designated stressed area
Rent reduced by at least 5% for the new tenant
✅ 70% reduction
Tenant is 18 to 35 years old
Or the property is rented to a public body or non-profit organization
✅ 60% reduction
Energy efficiency renovations within the last 2 years
At least a 30% improvement required
✅ 50% reduction
General reduction for habitual housing in non-stressed areas
✅ 80% reduction
First-time rental in a stressed area with a price below the regional reference rate