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V0848-22 20 April 2022 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del capital inmobiliario

Wealth Tax cannot be deducted as an expense from income from real estate capital

A landlord of a rented flat asks whether they can deduct the Wealth Tax paid when calculating the net income from their rental. The DGT responds that such a deduction is not possible.

The question raised

Request to determine whether the Wealth Tax paid can be deducted to determine the net yield of real estate capital in Personal Income Tax.

The DGT's ruling

Wealth Tax is a state tax. Personal Income Tax regulations establish that only non-state taxes that affect income or the assets producing such income are deductible. Therefore, as it is a state tax, it is excluded from deductible expenses for determining the net yield of real estate capital.

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