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V0214-26 4 February 2026 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · afectación

Roof replacements in farms could be deductible if classified as repair or conservation

A pig farming operator asks whether replacing asbestos roofs with polyester ones constitutes a deductible expense or an amortizable improvement. The DGT states that if the properties are used in the business activity, the replacement could be an expense of the year if classified as repair or conservation.

The question raised

Whether the replacement of roofs is considered a deductible maintenance or repair expense for Personal Income Tax (IRPF) purposes, or whether it is considered an improvement, which in that case must be deducted through depreciation.

The DGT's ruling

Deductibility depends on the use of the real estate for economic activity. If the works are considered repairs and maintenance, they would be expenses for the fiscal year; if they are considered improvements that increase productive efficiency, they would increase the value of the real estate and would be deducted through depreciation. As it is a matter of fact, the final classification of the works is determined by the Administration.

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