Skip to content
Back to index
V2248-18 26 July 2018 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · estimación directa

Loan repayments for studies incurred prior to commencement of activity are not deductible

A query was raised regarding whether instalments for a loan taken out for university studies are deductible as business expenses. The DGT ruled that, as the debt was incurred before the start of the activity, neither the principal nor the interest is deductible.

The question raised

Whether, for the purposes of Personal Income Tax, the amounts corresponding to the repayment of the credit, which is still being paid, are considered a deductible expense.

The DGT's ruling

Income and expenses must be attributed to the period in which they accrue, respecting the correlation between them. Since the study loan accrued prior to the commencement of the economic activity, the amounts paid for the principal and interest are not deductible from the net income of said activity.

Book your free first meeting