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A query was raised regarding whether the costs and taxes arising from the purchase of a property (Transfer Tax, notary fees, registry fees, etc.) are deductible in the context of a lease. The Directorate General for Taxes (DGT) ruled that these costs do not constitute lease expenses, but instead form part of the property's acquisition value.
This ruling clarifies the distinction between operational lease expenses and capital costs, preventing taxpayers from incorrectly deducting acquisition-related costs as current rental expenses.
The tax team reviews your specific situation.
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