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V1404-21 13 May 2021 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del capital inmobiliario

Repair costs for properties intended for rent are deductible under certain conditions

A property owner has enquired whether repair and maintenance costs incurred while a property was vacant can be deducted. The DGT has ruled that these are deductible provided it is proven they were carried out to facilitate future rental income rather than for the owner's personal use.

The question raised

Request to know whether such expenses may be deducted in the Personal Income Tax return.

The DGT's ruling

Repair and maintenance expenses are deductible if they are aimed exclusively at the future generation of income from real estate capital and not at the enjoyment of the owner. The deductible amount may not exceed the total income obtained, and any excess may be offset in the following four years. Annual expenses shall be deducted proportionally to the number of days the property is rented. Improvement works are not deductible as an expense, but are instead considered part of the acquisition cost.

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