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V0776-24 17 April 2024 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del capital inmobiliario

Deductible expenses for real estate capital income are limited to the period the property is rented

A owner of a holiday rental property asks which expenses can be deducted and in what proportion if the property is not rented throughout the entire year. The DGT rules that deductible expenses must be proportional to the period during which the property was actually rented.

The question raised

Question posed: Whether the following expenses can be deducted from the income obtained from said rental and in what proportion in the event that the property is not rented for the entire period: amounts allocated to services and utilities, property insurance, expenses related to the payment of taxes such as IBI or the waste tax, homeowners' association fees, mortgage interest borne by the owner, amounts paid to an intermediary company, maintenance and repair expenses (including cleaning), furniture and household goods, and amounts allocated to depreciation.

The DGT's ruling

Expenses necessary to obtain income from real estate capital are only deductible for the period during which the property is rented. Annual expenses, such as IBI (Property Tax), insurance, community fees, or mortgage interest, shall be calculated proportionally to the number of rental days. Furniture shall be deducted through depreciation according to the simplified table, also proportional to the rental days. Utilities are only deductible if paid by the lessor and not if paid directly by the lessee.

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