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V1363-25 21 July 2025 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · actividad económica

Interest and property amortisation deductible for rental activity

The consultant asks whether interest on a personal loan, fees and expenses of an industrial property used for rental can be deducted. The DGT responds that as the property is an element linked to economic activity, financial expenses and amortisation are deductible.

The question raised

Whether the interest paid on the aforementioned loan, as well as the expenses linked to the operation such as opening commissions, registry expenses, notary fees, and property depreciation, are deductible as business expenses.

The DGT's ruling

Loan interest is deductible if the liability is necessary to obtain income and the property is used for the activity. Depreciation of the property is also deductible, using the acquisition value excluding the land as the basis. Such acquisition value may include notary, registry, or loan establishment expenses. Expenses must be linked to the activity, correctly justified, and recorded in the accounts.

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