What matters about the rental refund
-
The General Tax Directorate (DGI) recalled that the taxpayers of the Personal income tax for work income can access a tax credit for housing rentals.
-
The benefit allows you to recover the 8% of the rent actually paid during 2025.
-
They can only access those who have generated personal income tax during the year and appear as holders of the contract lease.
-
The contract must be made in writing, allow the landlord to be identified and have a duration equal to or greater than one year.
-
It is not mandatory that the contract be registered to compute the credit.
-
To access the benefit it is necessary to present the corresponding sworn declaration through the forms 1102 or 1103.
Context
The rental tax credit is one of the benefits that workers who pay personal income tax can use to reduce the tax payable or increase an eventual refund.
The DGI explained that the calculation is made on the rents actually paid during 2025 and is equivalent to the 8% of the amount paid.
For example, a person who paid $108,000 rent during the year may compute a credit of $8,640while whoever has paid $180,000 can discount $14,400.
The final refund will depend on the tax generated during the year and the withholdings made by the employer.
In cases where the contract has more than one owner, the credit must be distributed by mutual agreement between the tenants. If there is no agreement, it will be divided equally.
The regulations also contemplate special situations. Those who pay taxes as a family unit may use the credit up to the amount of the tax generated by the joint settlement. If there is a surplus, it is not returned and cannot be carried over to future years.
On the other hand, those who pay personal income tax and IASS taxes simultaneously may first apply the credit to personal income tax and, if there is any remaining balance, use it to deduct IASS.
As follows
Taxpayers who meet the requirements must include the tax credit when submitting the personal income tax return for the 2025 financial year.
To do so, you must complete the forms 1102 either 1103 of the DGI.
Among the required conditions are having generated personal income tax during the year, being the holder of the rental contract and that the lease corresponds to a permanent home.
The DGI also recalled that contracts may be current or expired, as long as they have been concluded in writing, have a minimum duration of one year and allow the lessor to be identified.
