What should we take into account when buying a second home?

As a main question, we must take into account if the second house that we are going to acquire is going to be for our sole enjoyment, or if on the contrary we are going to get a return on it, that is, rent it.

• If we are going to make our own use of it, we must take into account that in our next Income we will pay for real estate income allocation.

What is imputed real estate income?

Imputed real estate income includes all those real estate properties that the taxpayer owns, as long as they are not rented to other people and with the exception of the habitual residence and a maximum of up to two parking spaces acquired with the current home.

How much is taxed for a second non-rented home?

Or what is the same, How much will I pay in my rent to have a second home?

1,1% for properties whose cadastral value has been reviewed before January 1, 1994. For properties that lack cadastral value, 1,1% of 50% of the value of the property will be found, for the purposes of Wealth Tax .

• If it is a second home and we are going to rent it, we will have to pay taxes on income for the income obtained from this rental, but in this case we will almost have the right to deduct the expenses that this causes us.

What expenses are deductible?

What expenses count to deduct income?

We leave you with the most common among many others.

1. Non-state taxes and surcharges are deductible, as well as state fees and surcharges, such as, the IBI, the rates for cleaning, garbage collection, lighting,

ETC. provided that they affect the computed yields or the goods or rights that produce them, and are not sanctioning in nature.

2. Amounts accrued by third parties in direct or indirect consideration or as a consequence of personal services, such as those of administration,

Surveillance, porter, garden care, etc. 

En particular, community of owners fees when it comes to real estate under the horizontal property regime.

3. The expenses caused by the formalization of the leasing contract,

sublease, assignment or constitution of the right and those of defense of a legal nature relating to assets, rights or yields.

5. They are deductible insurance contract premiums, either civil liability, fire, theft, glass breakage or others of a similar nature on the goods or rights that produce the income.

What if I am the tenant? Am I entitled to deductions?

• Deduction for the tenant for the rent of the habitual residence

We inform you of the requirements and limits:

As of January 1, 2015, the deduction for rental of the habitual residence has been abolished. However, a transitory regime is established that allows you to continue benefiting from this deduction if you meet the following requirements:

1. Have you entered into a lease with prior to January 1, 2015 and you have paid, prior to that date, amounts for the rent of your habitual residence.

2. You have been entitled to deduction for rental of the dwelling usual in relation to the amounts paid for the rental of said home in a tax period accrued prior to January 1, 2015.

3. You can deduct the 10,05% of the amounts paid in the tax period for the rental of your habitual residence, provided that your tax base is less than €24.107,20 per year and, without prejudice to the deduction for rent of habitual residence that, if applicable, for each year, has been approved by your Autonomous community.

• Deduct tax as a tenant, only for habitual residence
  

If the use of the house is different, such as a office or a second residence, the tenant will not be able to deduct anything in the income statement (with the office, they can subtract it from their business expenses or include it as self-employed deductions).

Do you have more questions or do you have more doubts, do not hesitate and contact us We will give you all the guidelines to follow.

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