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V1239-21 5 May 2021 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del capital inmobiliario

The depreciation of a rented property may be deducted up to its acquisition value

A taxpayer inquires about the limit for deductible depreciation of an inherited and rented apartment. The DGT clarifies that the limit for accumulated depreciation is the acquisition value of the property (excluding land), and not the acquisition cost paid.

The question raised

Question posed: Deduction of the apartment's depreciation in the Personal Income Tax.

The DGT's ruling

For properties rented as income from real estate capital, annual depreciation may not exceed 3% of the higher of the acquisition cost (excluding land) or the cadastral value (excluding land). The total limit for accumulated depreciation is the acquisition value of the property, pursuant to Article 36 of the LIRPF, excluding the land value. In acquisitions for consideration, the term 'acquisition cost paid' is used for the annual calculation, but the global depreciation limit is the acquisition value.

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