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V1382-21 13 May 2021 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del capital inmobiliario

Amortisation below 3% is permitted, but minimum amortisation must be used for capital gains

The taxpayer asks whether it is possible to deduct an amortisation rate of less than 3% for a residential rental property and how this affects the acquisition value upon sale. The Directorate General for Taxes (DGT) clarifies that while a deduction of less than 3% is permissible, the acquisition value must be reduced by applying the mandatory minimum amortisation when calculating the capital gain upon sale.

The question raised

Question posed: Whether, for the purposes of calculating amortization as a deductible expense, a percentage lower than 3% may be applied, and, if applicable, the calculation of amortizations in the determination of the acquisition value for the purposes of calculating the capital gain that may arise upon the transfer of the property.

The DGT's ruling

For income from real estate capital, it is possible to deduct an amortization amount lower than 3% of the higher of the values (acquisition cost or cadastral value excluding land). However, to calculate the capital gain or loss upon transfer, the acquisition value must be reduced by the tax-deductible amortizations, always computing the minimum amortization. This minimum amortization is determined according to the maximum amortization period or the corresponding fixed percentage.

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