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V2021-24 23 September 2024 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del capital inmobiliario

Mortgage costs for property acquisition constitute part of the higher acquisition value and are amortisable

A taxpayer has enquired whether expenses associated with a mortgage (notary, registry, taxes, etc.) can be deducted as depreciation of a leased property. The Directorate General for Taxes (DGT) has ruled that these expenses are inherent to the acquisition and, therefore, form part of the acquisition value for depreciation purposes.

The question raised

A request is made to ascertain which expenses are considered part of the higher acquisition value for the purpose of determining the deductible amount as depreciation for the determination of the net yield of real estate capital in Personal Income Tax.

The DGT's ruling

The expenses and taxes associated with the creation of the mortgage to finance the purchase of a property are expenses inherent to the acquisition. By integrating into the acquisition value pursuant to Article 35.1 of the Personal Income Tax Law (LIRPF), these amounts may be deducted through the corresponding depreciation to determine the net yield of real estate capital.

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