Back to index
V0332-21 24 February 2021 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del capital inmobiliario

Construction and maintenance costs are only deductible if intended for future income generation

The applicant asks whether construction and maintenance costs for a property can be deducted before it is rented out. The DGT rules that the deductibility of these expenses is contingent upon the generation of income from real estate capital and that the actions must be aimed exclusively at the future generation of such income.

The question raised

Question posed: It is requested to know whether construction expenses as well as housing maintenance expenses can be deducted until the property can be rented.

The DGT's ruling

Repair and maintenance expenses are deductible provided they are directed exclusively toward the future acquisition of income from real estate capital and not toward the enjoyment of the owner. The deductible amount may not exceed the total amount of income obtained, and any excess may be offset in the following four years. In periods without a lease, the real estate income provided for in the Personal Income Tax Law must be imputed. The situation of expectation of rental must be proven by the owner.

Email
Contact