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V2198-20 29 June 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del capital inmobiliario

Depreciation of property and furniture may be deducted from real estate income

A query was raised regarding the deductibility of depreciation within real estate income for Personal Income Tax (IRPF) purposes. The Directorate General for Tax (DGT) clarifies that it is possible to deduct the depreciation of both the property and the leased movable assets, provided they represent effective depreciation and are calculated in accordance with legal limits.

The question raised

Deductible depreciation of real estate capital income in Personal Income Tax (IRPF).

The DGT's ruling

To determine the net income from real estate capital, amounts allocated to the depreciation of the property and of the movable assets leased with it may be deducted. The depreciation of the property is effective if it does not exceed 3 percent of the higher of the acquisition cost or the cadastral value (excluding land). Movable assets are depreciated by applying the coefficients from the simplified depreciation table, taking into account the number of days of the lease.

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