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V2296-19 ·5 September 2019 ·consulta-vinculante Medium impact
Tax

Restoration works and contractually required utilities are deductible for economic activities

A doctor enquired whether expenses for works to restore a premises to its original state, along with community fees and utilities paid during the works, were deductible. The DGT ruled that these expenses are deductible provided they are linked to the activity and meet the requirements of justification and correlation with income.

In 6 key points

How it affects those involved

This ruling clarifies that costs incurred to return a leased property to its original condition, as well as utility costs during such works, can be treated as deductible business expenses if they meet standard tax criteria.

Lifecycle

2019-09-05PublishedPublished 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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