Skip to content
Back to index
V1762-20 3 June 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del capital inmobiliario

Deduction of 3% depreciation on the acquisition cost of inherited life usufruct permitted

A taxpayer inquired whether they could deduct the depreciation of a life usufruct on an inherited property that is currently being rented out. The Directorate General for Taxes (DGT) ruled that, as it is a life interest, the taxpayer may deduct 3% of its acquisition cost.

The question raised

Deductible expense for amortization in the determination of net income from real estate capital.

The DGT's ruling

In income from real estate capital, if ownership derives from a right of use or enjoyment, the satisfied acquisition cost may be amortized. If the right is life-long, the amortization shall be the result of applying 3 percent to the satisfied acquisition cost. This cost includes the Inheritance and Gift Tax paid plus the expenses and taxes inherent to the acquisition.

Book your free first meeting