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V1250-20 5 May 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del capital inmobiliario

Installing an elevator is considered a property improvement, allowing for a 3% depreciation deduction

A property owner inquired whether the cost of installing an elevator in their building could be deducted from Personal Income Tax (IRPF) against rental income. The Directorate General for Taxes (DGT) ruled that, as it constitutes a property improvement, it can be deducted through the depreciation of the property.

The question raised

Impact on the Personal Income Tax (IRPF) return of the amount paid by the taxpayer for the installation of the elevator.

The DGT's ruling

The installation of an elevator in a building where none previously existed is considered an investment or improvement to the property. Therefore, the application of a 3 percent depreciation on the higher of the values (acquisition cost or cadastral value excluding land) is appropriate pursuant to Article 14.2 a) of the RIRPF. This depreciation may be carried out starting from the completion of the works.

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