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V1417-25 24 July 2025 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del capital inmobiliario

Deductibility of repair and annual expenses for rental properties

The taxpayer asks whether all repair costs for a tourist rental property can be deducted or only proportionally to the rental days. The tax authority states that repair costs depend on income generation and proof of rental expectation, while annual expenses are deductible only proportionally to the rental period.

The question raised

The taxpayer requests to know whether they may deduct the total repair and maintenance expense or only proportionally to the number of days the property is rented for the purposes of Personal Income Tax.

The DGT's ruling

Repair and maintenance expenses are deductible provided they are directed exclusively toward the future generation of income and not toward the enjoyment of the owner, and the situation of rental expectation must be proven. The deductible amount may not exceed the gross income, and any excess may be offset in the following four years. However, annual expenses, such as property tax (IBI) or insurance, are only deductible in proportion to the number of days the property is effectively leased.

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