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A taxpayer has enquired whether they can deduct the fees of a lawyer hired to evict a tenant. The Directorate General of Taxes (DGT) responds that, provided the lease does not constitute an economic activity, these expenses are deductible as income from real estate capital.
This ruling clarifies the tax treatment of legal expenses incurred in property management, confirming their deductibility for taxpayers reporting real estate income.
The tax team reviews your specific situation.
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