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V1786-24 17 July 2024 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del capital inmobiliario

Lease agreement formalisation costs are deductible for Personal Income Tax (IRPF)

A taxpayer inquired whether train travel expenses and agency commissions incurred during the formalisation of a rental agreement are deductible. The Directorate General for Taxes (DGT) ruled that lease formalisation costs are deductible against income from real estate capital.

The question raised

Deductibility of train travel expenses and lease contract formalization expenses in Personal Income Tax.

The DGT's ruling

Expenses incurred due to the formalization of the lease are deductible for the purpose of determining the net income from real estate capital. This deductibility must be calculated proportionally to the number of days in the tax period during which the property is leased. The necessity and reality of the expense must be substantiated by means of evidence admitted in law.

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