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V2061-21 9 July 2021 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del capital inmobiliario

3% depreciation may be deducted on the highest value of a group of properties with a single acquisition price

A property owner sought guidance on calculating deductible depreciation for three properties (one primary and two ancillary) acquired for a single price and leased under a single contract. The DGT ruled that, as there is a single contract and price, it is treated as a single lease. Consequently, depreciation is calculated by applying 3% to the higher of the acquisition cost or the cadastral value (excluding land value).

The question raised

How to compute the deductible depreciation expense in the determination of real estate capital income.

The DGT's ruling

When properties are acquired jointly for a single price and leased under a single contract, they may be treated as a single lease to determine real estate capital income. In this case, the deductible depreciation is calculated by applying 3 percent to the higher of two values: the satisfied acquisition cost (excluding land value) or the cadastral value (excluding land value).

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