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V0744-19 2 April 2019 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimiento neto del capital inmobiliario

Amortisation of leased property may be deducted by applying 3% to the higher of acquisition cost or cadastral value (excluding land)

A property owner who acquired a leased property through a housing cooperative asks how to calculate amortisation to determine their net income from real estate capital. The DGT clarifies that 3% shall be applied to the higher of two values, always excluding the value of the land.

The question raised

Method of calculating depreciation for the determination of the net yield of real estate capital.

The DGT's ruling

To determine the net yield of real estate capital, the deductible depreciation may not exceed 3% of the higher of the satisfied acquisition cost (excluding land) or the cadastral value (excluding land). If the value of the land is unknown, it shall be calculated by prorating the acquisition cost between the cadastral values of the land and the construction. The loss in value of the plot occurring since its acquisition by the cooperative shall not be included in the acquisition cost.

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