Skip to content
Back to index
V0192-22 7 February 2022 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · afectación parcial

Partial deductibility of housing and supply costs under tax and allocation

A lawyer asks whether the purchase of a property used as both residence and office, along with supplies, is deductible under IRPF and IVA. The DGT responds that the property can be deducted as an investment asset and supplies through a specific percentage.

The question raised

Question posed: Deductibility in Personal Income Tax (IRPF) and VAT of the expenses associated with the acquisition of the aforementioned property and the expenses incurred for other utilities contracted for the residence, such as electricity, water, telephone, or internet.

The DGT's ruling

Regarding VAT, housing is deductible if it is considered an investment asset and is partially used for the activity, requiring regularization if the use changes. Utilities (electricity, water, etc.) are not deductible if they are used simultaneously for private use, unless they are exclusive to the activity. Regarding Personal Income Tax (IRPF), ownership expenses (depreciation, property tax, interest, etc.) related to the portion of the housing used for the activity may be deducted proportionally. Utilities in the primary residence are deducted by applying 30% to the percentage of square meters allocated to the activity.

Free assessment and quote