Skip to content
Back to index
V1891-25 14 October 2025 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimiento neto del capital inmobiliario

Repair and conservation costs deductible; improvements added to acquisition value

The taxpayer asks how to distinguish between repair and improvement works for IRPF rental deductions. The tax authority clarifies that repairs preserve the property's utility and are deductible, while improvements or expansions increase its capacity or useful life and must be added to the acquisition value.

The question raised

A request to determine which works are considered improvements and which are considered repairs and maintenance, as well as the temporal imputation of said expenses to determine the net income from real estate capital in the 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, and are deductible from the net income from real estate capital. Improvements or expansions, which increase capacity, habitability, or useful life, are not deductible as an expense, but rather form part of the acquisition value. To deduct repair expenses carried out prior to the rental, these must be aimed exclusively at the future generation of income and not at the enjoyment of the owner. The deduction of these expenses is subject to a limit based on the gross income obtained, allowing the excess to be offset in the following four years.

Book your free first meeting