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V2659-24 ·27 December 2024 ·consulta-vinculante Medium impact
Tax

Garage renovation costs for a studio may be deductible for Income Tax and VAT under specific conditions

A musical composer has enquired whether the costs of renovating a garage to create a recording studio are deductible. The DGT indicates that VAT deductibility depends on whether the activities are taxable and whether the asset is considered an investment good. Regarding Income Tax, deductibility will depend on the partial use of the property for business purposes and whether the works constitute repairs or improvements.

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2024-12-27PublishedPublished 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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