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A non-resident asks whether a German loan for building a property in Ibiza is deductible. The DGT states it will be deductible if its existence and allocation to the property are adequately proven.
Question posed: Consideration as deductible debt for Wealth Tax purposes.
Debt from a non-mortgage loan is deductible provided that the requirement of being duly justified is met. To this end, the existence of the debt and its exclusive application to the acquisition or construction of the real estate property in Spanish territory must be sufficiently proven.
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