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V1245-23 11 May 2023 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del capital inmobiliario

The limit for accumulated depreciation of a property is its acquisition value

A taxpayer has enquired about the limit for deductible depreciation regarding income from real estate capital. The DGT clarifies that, although there is an annual limit of 3%, the total accumulated depreciation cannot exceed the acquisition value of the property.

The question raised

Limit on deductible depreciation for the purpose of calculating the net income from real estate capital.

The DGT's ruling

For income from real estate capital, the annual depreciation must not exceed 3% of the higher of the acquisition cost (excluding land) or the cadastral value (excluding land). Notwithstanding, the accumulated depreciation is limited to the acquisition value of the property, as this value cannot be negative. Therefore, the acquisition value shall be reduced by the tax-deductible depreciation.

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