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V0716-24 16 April 2024 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del capital inmobiliario

Elevator installation and land acquisition costs increase property acquisition value

A homeowner inquired whether the costs of a new lift, the land purchased for it, and a community loan could be deducted. The DGT ruled that these expenses constitute improvements that increase the property's value rather than repair expenses.

The question raised

Whether, for the purposes of determining the net income from real estate capital, the consultant may deduct the amounts paid for the installation of the elevator and the acquisition of the land, the expenses inherent to such operations, as well as the amounts paid for the loan granted to the community.

The DGT's ruling

The installation of an elevator is an improvement that increases the acquisition value of the dwelling, including the proportional part of the land and the installation. Only the cost of the elevator is deductible through an annual depreciation of 3%, excluding the value of the land as it is a non-depreciable element. The interest on the community loan and the notary fees linked to its granting are deductible as financing expenses according to the owner's participation.

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