One of the most important deductions in the 2021-2022 Income Campaign of the Community of Madrid is the rental deduction by which taxpayers who pay rent and meet certain age and income requirements can deduct up to 1,000 euros in your statement. This deduction is key for many citizens and forces them to catch up with a tax that often goes unnoticed.
This is the Property Transfer Tax, the ITP, a tax levied on “remunerated and inter vivos transfers of all kinds of assets and rights that make up the assets of natural or legal persons, as well as the constitution of real rights, loans, bonds, leases, pensions and administrative concessions, for example, the purchase-sale of a second-hand apartment”, .
The payment of this tax was mandatory but for years it was not paid due to the low amount of the tax and a broad-sleeved attitude on the part of the Administration. The Community of Madrid controversially recovered it for the 2018 Income tax year, but a year later the Government approved the exemption from the payment of this tax on “housing leases for stable and permanent use”, in accordance with article 45 of the .
However, although this tax is exempt from payment, the taxpayer must present it to the Madrid Treasury if they do not want to have headaches with possible revisions of their declaration. If the citizen can take advantage of the rental deduction, he must present the ITP exempt to avoid problems.
What documentation is needed to pay the ITP
-Form 600 duly completed.
-The original and a copy of the lease.
-The DNI or NIE of the taxpayer.
How to present the ITP
If you have a digital certificate (), the taxpayer will be able to settle the tax electronically from their home by downloading the help program for completing the tax, .
The taxpayer is also allowed to carry out the procedure by telephone, for which he must make an appointment in advance so that a worker from the General Directorate of Taxes can assist him. It will be through this link, in which you must choose the option ‘Request an appointment’ and then choose the ‘Taxpayer Information and Assistance’ centers and the ‘Property Transfers’ services. The system will let you check on a calendar what days and what hours there are free slots.
Then, you have to fill in all the information requested (personal and contact details), in addition to attaching the necessary documentation in a single PDF file that cannot exceed 20 Mb in size. The Community of Madrid warns that if the documentation is incomplete the appointment will be cancelled.
To present the ITP in person, the taxpayer must go to the General Directorate of Taxes of the Community of Madrid (located at Paseo General Martínez Campos, 30) or at any of the 24 Liquidating Offices of the Mortgage District, .
If you wish to go to the General Directorate of Taxes, it will be essential to request a prior appointment, which can be requested by calling 91 580 94 04, from 8:00 a.m. to 3:30 p.m. Monday through Friday, excluding holidays. You also have the option of requesting it by going in person to the General Directorate of Taxes from Monday to Friday from 08:30 a.m. to 2:30 p.m.
This is the deduction for rent in the Community of Madrid
The deduction for rental in the Madrid region is one of the largest, since it can be 30% of the amounts paid for that rental, with a maximum deduction of 1,000 euros.
To qualify for this deduction, the taxpayer must be under 35 years old (under 40 in situations of unemployment with two or more dependents) and not exceed 25,620 euros of income in individual taxation or 36,200 in joint taxation. In addition, the sum of the tax bases of the members of the cohabitation unit cannot exceed 60,000 euros per year.
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