Home insurance relieves the Treasury?

In a few months you will have to file your income tax return, like every year, and it is quite possible that you are wondering if home insurance is tax-deductible. A policy that covers you when you have a disaster at home – such as a water leak or if a fire occurs – and that can generate another series of benefits that you don’t know about. Because yes, home insurance is tax-deductible , although there are some conditions that must be met.

Requirements for home insurance relief

Although home insurance is tax-free, it may be that your profile does not meet the requirements that are currently in force. So take note of the following.

You purchased the home before 2013

Even if you’ve taken out home insurance, you won’t always be able to deduct it. And there are certain conditions that you must meet. Among them, that you have acquired it before the year 2013 . Are you wondering why? Well, because that’s what Law 35/2006, of November 28, states. And the fact is that any home bought after 2013 is exempt from the application of this interesting deduction if you had a home policy.

Your property is mortgaged

Another of the circumstances in which the home insurance relieves the Treasury is when, in addition to having bought the home before 2013, you have linked a property to it. This must be in force, since, if you have already finished paying it, you will not be able to deduct your home insurance. Do you meet these requirements to deduct the policy?

The house is rented

Taking out home insurance for a home you rent is recommended so you can have peace of mind no matter what happens. And yes, it is possible to deduct the policy if you get income from renting out your home . This is because insurance is considered an expense within the returns of the property. However, this is only valid for rentals made before January 1, 2015.

You are self-employed

As a self-employed person you have to face a series of expenses, but you also have other advantages and that is that home insurance relieves the tax authorities. Of course, as long as you carry out the activity from your home – for example, if you are a freelance designer. However, you can only deduct the percentage of the home that you have allocated to develop your work activity, such as your office.

How much does the Treasury deduct home insurance?

At this point, you’re probably wondering how much the Treasury deducts home insurance. And if you meet all the requirements set out above, you will be able to take advantage of deductions that may be of interest to you.

• If you bought your usual home before 2013 and are still paying the mortgage, fill in boxes 547 and 548 of your income tax return. The percentage of deduction you can apply will not exceed 15%. In addition, the maximum deduction will be 1356 euros, a figure that you must keep in mind when filing your income tax return.
• If you are a lessor and have a contract before 2015, the box in the declaration you must fill in will be 0114. You will be able to deduct the entire premium as long as it includes civil liability, theft or breakages. This will not be a problem as a basic cover already has the first cover.
• As a self-employed person, the percentage you can deduct from paying your home insurance premium will depend on the space you dedicate to your activity inside the house. Do the calculations well to avoid problems with the Treasury or in the event that your home is inspected.

Did you know that home insurance is tax deductible? Now that you know it is, hire yours. In this way, you will be protected against any unexpected event that occurs and can cause you very expensive damages to deal with. And if you have any doubts, you know you can contact our advisers.