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V1936-17 19 July 2017 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del capital inmobiliario

Amortisation of leased properties may be deducted by applying 3% to the higher of cost or cadastral value (excluding land)

A query was raised regarding the calculation of amortisation expenses for two leased properties that do not form part of an economic activity. The DGT clarifies that the deductibility limit is 3% of the higher value between the acquisition cost (excluding land) or the cadastral value (excluding land).

The question raised

Calculation of the depreciation expense for leased properties.

The DGT's ruling

For income from real estate capital, depreciation is deductible if it does not exceed 3% of the higher of two values: the acquisition cost paid or the cadastral value, always excluding the land value in both cases. If the land value is unknown, it shall be calculated by prorating the acquisition cost between the cadastral values of land and construction. This deduction is only applicable in periods where the properties generate income from real estate capital.

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