Rental subsidies: Bunching in Spanish personal income tax
Abstract
This paper examines whether there is a loss of tax efficiency from a bunching standpoint as a result of the deduction given for renting a primary residence. It follows the methodology put forth by Saez (2010), using the Panel of Personal Income Tax Filers (2008-2016) provided by Spain's Institute for Fiscal Studies as a database. The results show no change in behaviour in most cases, with the exception of women in 2015 and 2016. Therefore, as far as grouping is concerned, the tax benefit was well designed in terms of avoiding tax efficiency loss
Fields of Study & Subjects
Finance
Taxation
and Governance
Corporate Taxation and Avoidance
Taxation and Compliance Studies
Publication details
- Journal / source
- ECONOMIA PUBBLICA
- Issue
- 1
- Pages
- 37–59
- Publication date
- 1 June 2026
- Language
- EN