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V3136-20 ·20 October 2020 ·consulta-vinculante Medium impact
Tax

Improvement or extension works are included in the acquisition value and are not repair expenses

A query was raised regarding whether works carried out on a rented property constitute repair expenses or improvements. The DGT explains that repairs maintain the useful life of the asset, whereas improvements or extensions increase the capacity, habitability, or useful life of the property.

In 6 key points

Lifecycle

2020-10-20PublishedPublished 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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