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V0947-19 ·7 May 2019 ·consulta-vinculante Medium impact
Tax

Installing an elevator is considered a property improvement, allowing for 3% depreciation deductions

A property owner inquired whether the cost of installing an elevator in their building is deductible from their Personal Income Tax (IRPF) regarding rental income. The Directorate General for Taxes (DGT) ruled that, as it is a new installation, it constitutes an improvement rather than a repair expense, and must therefore be depreciated.

In 5 key points

How it affects those involved

Landlords must distinguish between repair expenses and property improvements, as the latter must be depreciated over time rather than deducted in full.

Lifecycle

2019-05-07PublishedPublished 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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