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V2393-20 13 July 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos de capital inmobiliario

Personal income tax payments cannot be deducted as necessary expenses for income from real estate capital

A query was raised regarding whether personal income tax (IRPF) paid on income from real estate capital derived from a tourist rental property can be deducted. The Directorate General for Taxes (DGT) ruled that IRPF is not a deductible expense for the calculation of such income.

The question raised

Whether payments for Personal Income Tax self-assessments may be deducted as expenses for the calculation of income from real estate capital in respect of tourist rental housing.

The DGT's ruling

Personal Income Tax (IRPF) is not included in the list of taxes and fees deductible as necessary expenses for obtaining income. The payment of the tax is a personal obligation and its deductibility would imply paying the Tax Administration an amount lower than that legally provided. Furthermore, the tax liability derives from various sources of income and contains elements unrelated to specific yields, which prevents the calculation of a theoretical amount attributable to a single type of income.

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