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V0257-21 16 February 2021 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · afectación parcial

Deductibility in IRPF and IVA for partial residential use expenses

A taxpayer asks about the deductibility in IRPF and IVA of expenses for a property used partially for professional activities. The DGT clarifies how to apply these deductions and the IVA limitations for supplies.

The question raised

Question posed: Deductibility in Personal Income Tax (IRPF) and VAT of expenses associated with the ownership of the dwelling, as well as utility expenses.

The DGT's ruling

In Personal Income Tax (IRPF), partial allocation of the dwelling is possible if the part used is capable of independent use, allowing for the proportional deduction of expenses such as Property Tax (IBI) or depreciation. Utilities (water, electricity, etc.) are deducted by applying 30% to the proportion of square meters allocated to the activity. Regarding VAT, utilities are not deductible due to their simultaneous use for private needs, unless they are exclusive to the activity. The dwelling may be deductible for VAT purposes only if it is considered an investment asset and partial allocation is applied.

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