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V0346-23 ·20 February 2023 ·consulta-vinculante Medium impact
Tax

Passenger car expenses cannot be deducted if used for private purposes

A property manager inquired whether they could deduct vehicle expenses. The Spanish Tax Agency (DGT) ruled that to deduct fuel, maintenance, or depreciation, the vehicle must be an asset exclusively used for economic activity.

In 6 key points

How it affects those involved

This ruling limits the tax deductibility of passenger vehicle costs, requiring strict proof that the asset is used solely for professional purposes and not for personal use.

Lifecycle

2023-02-20PublishedPublished 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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