Sums earned by the tenant from transferring or assigning lease rights are considered to be capital gains, but sums received for sublets are considered earnings from real estate.
Deduction for renting main home:
Notwithstanding what has been approved by each Autonomous Community, from 1 January 2008, taxpayers were able to deduct a percentage of the quantities paid during the tax period to rent their main residence.
From 1 January 2015, this deduction for the rental of a main residence, established in article 68.7 of the Personal Income Tax Act, was abolished, and a transitional regime was set up to continue with the deduction in accordance with the regulation contained in Personal Income Tax Act, in the wording of 31 December 2014, to taxpayers who:
The aforementioned regulation offered a 10.05% deduction of the quantities paid during the tax period, provided that the gross tax base was less than 24,107.20 euros per year.The deduction is entirely central, applicable only to the central government portion of the tax, and does not affect the regional portion (in addition to this general deduction, some Autonomous Communities have approved their own deductions similar to and compatible with this general one).
The maximum base of this deduction is:
9,040 euros per annum when the taxable base is equal to or less than 17,707.20 euros per annum.
9,040 - [1,4125 x (taxable base -17,707.20)], when the taxable base is between 17,707.20 and 24,107.20 euros per annum.
If the gross tax base is 24,107.30 euros per year or more, under individual or joint taxation, no amount can be deducted.
In the Income Tax Manual for the relevant financial year you will find all of the information on possible regional deductions for the rental of a principle residence.