Skip to content
Back to index
V0260-22 14 February 2022 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · elementos patrimoniales afectos

Deductibility of IRPF and VAT on purchase of a property for professional activity

A professional inquired whether they could deduct VAT and IRPF on the purchase of a loft for their business. The DGT responds that this is possible provided the property is used exclusively for economic activity.

The question raised

Deductibility in VAT and IRPF of the acquisition of the loft.

The DGT's ruling

In Personal Income Tax (IRPF), the real estate property is an asset used for business purposes if it is allocated to the activity, allowing for the deduction of its expenses and depreciation. In VAT, the tax amounts are deductible if the asset is used directly and exclusively for professional activity. As it is an investment asset, if there is partial allocation, the deduction shall be proportional and must be regularized if the degree of use changes.

Book your free first meeting