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V0545-24 9 April 2024 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del capital inmobiliario

Installing an elevator in a rented property is considered an improvement, allowing for 3% depreciation

A property owner inquired whether they could deduct the cost of installing an elevator in their rented property. The DGT has ruled that, as no elevator previously existed, this constitutes an improvement, allowing for the application of 3% depreciation on the property's value.

The question raised

Impact on the Personal Income Tax (IRPF) return of the amount paid by the taxpayer for the installation of the elevator.

The DGT's ruling

The installation of an elevator in a building where none previously existed is considered an improvement to the property and not a repair expense. Therefore, it is not deductible as a maintenance expense, but rather the 3% depreciation must be applied to the higher of the values between the acquisition cost or the cadastral value (excluding land). This depreciation may be applied starting from the completion of the works.

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