Skip to content
Back to index
V2165-24 9 October 2024 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del capital inmobiliario

Cancellation and new mortgage costs may be deducted from real estate income

A property owner inquired whether the costs incurred from replacing a mortgage loan with another under better terms were deductible. The DGT ruled that they are deductible, provided the new loan is used to repay the previous one.

The question raised

Whether said expenses would be considered financing expenses and therefore would be deductible for the purpose of calculating the net yield of real estate capital.

The DGT's ruling

The substitution of one loan for another does not conclude the financing process, but rather modifies its conditions, provided that the new credit is used to amortize the previous one. Therefore, early cancellation fees, notary fees, registration fees, and appraisal costs for the new mortgage are deductible. The taxpayer must prove that the loan is linked to the property and justify its repayment.

Book your free first meeting