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V1011-21 20 April 2021 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimiento neto

Only interest and financial expenses on loans used to acquire a lottery administration are deductible

A taxpayer has inquired whether they can deduct loan repayments made to a private individual for the purchase of a lottery business. The Directorate General for Taxes (DGT) has ruled that only interest and financial expenses are deductible, whereas the repayment of the principal is not.

The question raised

Whether the monthly installments of the aforementioned loan are deductible for the borrower in the Personal Income Tax.

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