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V2401-20 14 July 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del capital inmobiliario

Soundproofing costs for rental properties are classified as improvements and are deductible via depreciation

A landlord inquired whether the cost of soundproofing a wall and repainting it in a rental property was a deductible expense. The DGT has determined that the work constitutes an improvement rather than a repair expense.

The question raised

Whether the work performed is considered a deductible expense from income from real estate capital in the Personal Income Tax (IRPF).

The DGT's ruling

Repairs and maintenance are those intended to maintain the useful life and capacity for use of the property. Improvements are those that increase capacity, habitability, or extend the useful life. Soundproofing is classified as an improvement; therefore, its deductibility must be carried out through depreciation.

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