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V1105-20 28 April 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del capital inmobiliario

The accumulated depreciation of a leased property is limited to its acquisition value

A query is made regarding how to calculate the deductible depreciation of a property for Personal Income Tax (IRPF) purposes and what its accumulated limit is. The DGT clarifies that annual depreciation cannot exceed 3% of the higher of the acquisition cost or the cadastral value (excluding land) and that the total limit of accumulated depreciation is the acquisition value of the property.

The question raised

Question posed: Calculation of the deductible depreciation of a leased property.

The DGT's ruling

For income from real estate capital, the annual deductible depreciation may not exceed 3% of the higher of the actual acquisition cost paid or the cadastral value, excluding land. The acquisition value is composed of the actual purchase price plus expenses, taxes, and investments, reduced by tax-deductible depreciation. Consequently, the limit for accumulated depreciation is the acquisition value itself, as this cannot be negative.

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