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V1434-19 14 June 2019 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del capital inmobiliario

Property acquisition costs are treated as part of the acquisition value rather than deductible lease expenses

A query was raised regarding whether the costs and taxes arising from the purchase of a property (Transfer Tax, notary fees, registry fees, etc.) are deductible in the context of a lease. The Directorate General for Taxes (DGT) ruled that these costs do not constitute lease expenses, but instead form part of the property's acquisition value.

The question raised

Question raised: Deductibility of expenses and taxes derived from the acquisition, such as Transfer Tax and Stamp Duty, Notary Fees, Land Registry Registration, Appraisal, and Administrative Management Fees.

The DGT's ruling

The expenses and taxes inherent to the acquisition of the real estate property are not related to the lease nor to the contractual relationship between the lessor and the lessee. These amounts constitute an increase in the acquisition value for the calculation of capital gains or losses in the event of a transfer. Notwithstanding, as they form part of the acquisition cost, they may be deducted through the corresponding depreciation.

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