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V0632-23 17 March 2023 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del capital inmobiliario

Annual property expenses are only deductible in proportion to the number of days leased

The taxpayer asks whether maintenance and depreciation expenses for a plot of land can be fully deducted or if they must be applied proportionally to the number of rental days. The DGT rules that annual expenses are only deductible based on the period during which the property is leased.

The question raised

Question posed: The taxpayer requests to know whether expenses can only be deducted or depreciated proportionally to the number of days the plot is leased, or if another possibility exists for Personal Income Tax purposes.

The DGT's ruling

Annual expenses, such as depreciation, property tax (IBI), or insurance, are only deductible in proportion to the number of days within the tax period that the property is leased. For repair and maintenance expenses, there must be a correlation with the generation of income, and they must be directed exclusively toward the future generation of yields rather than the owner's enjoyment. If no yields are generated in the year these expenses are incurred, they may be deducted over the following four years, respecting legal limits. During periods without rental activity, the owner must impute the corresponding real estate income.

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