Skip to content
Back to index
V1455-23 26 May 2023 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos de capital inmobiliario

Proportional deductibility of interest on a single mortgage following loan consolidation

The taxpayer asks whether, after consolidating three mortgages, they can continue to deduct interest proportionally for properties they rent out. The DGT rules that it is possible to deduct the proportional part of the interest from the new loan that was used to repay the original mortgages of the rented properties.

The question raised

Whether it is possible, once the mortgages have been consolidated, to continue deducting the interest from the gross yields of the real estate capital in the proportional part for the properties intended for rent.

The DGT's ruling

If the mortgages are consolidated, the interest generated corresponding to the proportional part of the principal of the new loan intended to cancel the loans for the acquisition of the rented properties shall be deductible. This deductibility shall be applied proportionally to the number of days in the tax period during which the property is leased. The reality of the expense must be proven by means of evidence admitted in law.

Book your free first meeting