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V2955-18 ·14 November 2018 ·consulta-vinculante Medium impact
Tax

A 3% rate must be applied to the higher of the acquisition cost (excluding land) or the cadastral value (excluding land)

The taxpayer asks which value to use when deducting depreciation for a property rented in France for which no cadastral value is available. The DGT rules that the deductible depreciation is 3% of the higher of the acquisition cost or the cadastral value, always excluding the value of the land.

In 6 key points

How it affects those involved

This ruling clarifies the calculation method for property depreciation in cases involving foreign assets without a cadastral value, ensuring consistency in applying the 3% rule while excluding land value.

Lifecycle

2018-11-14PublishedPublished 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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