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V1811-24 19 July 2024 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del capital inmobiliario

Repair and maintenance costs for rental properties are deductible if aimed at generating income

A query was raised regarding whether cleaning and maintenance costs due to dampness in a flat intended for rent constitute repairs or improvements. The DGT ruled that repairs maintain the useful life of the asset and are deductible, whereas improvements or extensions increase capacity or habitability and are considered part of the acquisition value.

The question raised

It requests to know whether the expenses presented are considered repair and maintenance expenses or are an improvement for the purposes of Personal Income Tax.

The DGT's ruling

Repairs and maintenance are those intended to maintain the useful life and capacity for use of the property, being deductible from the income from real estate capital. Improvements or expansions, which increase capacity, habitability, or useful life, are integrated into the acquisition value. For maintenance expenses incurred while the property is vacant to be deductible, they must be aimed exclusively at the future generation of income and not at the enjoyment of the owner. The deductible amount may not exceed the total income for the period, and the excess may be offset in the following four years.

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