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V1788-24 17 July 2024 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos de capital inmobiliario

Mortgage cancellation costs are deductible from real estate capital income

A landlord has inquired whether notary, registry, and administrative fees arising from the cancellation of a mortgage are deductible. The Directorate General for Taxes (DGT) has ruled that these financing costs are indeed deductible.

The question raised

Taxation of expenses in the Personal Income Tax.

The DGT's ruling

Expenses necessary to obtain income from real estate capital are deductible. In addition to interest, other financing expenses are considered deductible, such as credit cancellation fees, notary fees, and mortgage cancellation fees at the Land Registry.

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