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V1557-24 25 June 2024 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del capital mobiliario

Rental expenses for sublet properties may be deducted from income from movable capital

A taxpayer inquired whether they could deduct the rental cost of a property used for short-term holiday subletting. The Directorate General for Tax (DGT) ruled that, as this does not constitute an economic activity, the income is classified as income from movable capital, which allows for the deduction of expenses necessary to obtain it.

The question raised

Requests to know whether it is possible to deduct the amounts paid for the lease of the dwelling that generates the income.

The DGT's ruling

Income from the subletting of dwellings constitutes returns on movable capital, unless hotel industry services are provided. In such a case, it is possible to deduct from the gross income the expenses necessary for its attainment, including the amounts paid to the owner for the lease of the property, provided that they correspond to the period in which the property has been sublet.

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