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V1761-24 17 July 2024 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos de capital inmobiliario

Rent for a new home is not deductible against income from renting out one's own property

The taxpayer asks whether the rent paid for a new home in a different city can be deducted from the income earned by renting out their primary residence. The Directorate General for Taxes (DGT) rules that this expense is not necessary to generate the real estate capital income from the first property.

The question raised

It requests to know whether the rent paid in the new city can be deducted from the income received from the lease of the property owned by the taxpayer for the purposes of Personal Income Tax.

The DGT's ruling

The rental of a different property is not considered a necessary expense for obtaining the income from real estate capital of the leased property. Only expenses necessary for obtaining said income are deductible, such as interest, repairs, taxes, services, or depreciation, provided they correspond to the period in which the property is leased.

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