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V1106-19 21 May 2019 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del capital inmobiliario

Legal defence costs related to property are deductible from income from real estate capital

A taxpayer has enquired whether they can deduct the fees of a lawyer hired to evict a tenant. The Directorate General of Taxes (DGT) responds that, provided the lease does not constitute an economic activity, these expenses are deductible as income from real estate capital.

The question raised

Deductibility of the amount of expenses derived from the hiring of a lawyer.

The DGT's ruling

Legal defense expenses relating to assets, rights, or yields are considered deductible for the purpose of determining the net yield of real estate capital. These expenses must be attributed to the tax period in which they become due to the recipient.

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