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V1135-18 ·30 April 2018 ·consulta-vinculante Medium impact
Tax

Useful life of facilities based on land use duration or economic life

A company has requested clarification on the criteria for amortising the tangible fixed assets of a hotel facility after obtaining a declaration of community interest for land use for a period of 25 years. The DGT ruled that the useful life shall be the duration of the land use term, including extensions if there is evidence of their occurrence, provided this is shorter than the asset's economic life.

In 6 key points

How it affects those involved

This ruling provides legal certainty for companies regarding the depreciation periods of assets tied to land use concessions, ensuring that accounting practices align with the legal duration of land rights or economic viability.

Lifecycle

2018-04-30PublishedPublished 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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