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V0112-18 ·19 January 2018 ·consulta-vinculante Medium impact
Tax

Property depreciation may be deducted by applying 3% to the higher of acquisition cost or cadastral value

A taxpayer inquired about the deductible depreciation expense for a rented, inherited porter's lodge. The Directorate General for Taxes (DGT) ruled that the deductible amount is 3% of the higher value between the acquisition cost and the cadastral value (excluding land).

In 5 key points

How it affects those involved

This ruling clarifies the calculation method for depreciation expenses in real estate income, ensuring taxpayers use the higher of two specific valuation metrics.

Lifecycle

2018-01-19PublishedPublished in the BOE
Official text Based on BOE data (boe.es). Information, not advice.

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This analysis is informational only and does not constitute legal advice or create a client-adviser relationship. BM Consulting.
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