Skip to content
Back to index
V2421-23 7 September 2023 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · ganancia patrimonial

The acquisition value of a property must be reduced by tax-deductible depreciation

A taxpayer inquired how to account for the depreciation of a leased property when calculating capital gains upon sale, given that these were not deducted during the rental period. The Directorate General of Taxes (DGT) ruled that the acquisition value must be reduced by such depreciation, even if it was not actually claimed.

The question raised

Taking into account that the acquisition cost of the property is higher than the cadastral value, the method for computing the property depreciation for the purpose of determining its acquisition value for the calculation of the capital gain in Personal Income Tax.

The DGT's ruling

The acquisition value is determined by adding the actual purchase amount, investments, improvements, and inherent expenses, reducing this value by the tax-deductible depreciation. For the calculation of the capital gain, the minimum depreciation must be computed, regardless of whether it was considered an expense or not. In this case, as the acquisition cost is higher than the cadastral value, the depreciation percentage shall be applied to said cost.

Book your free first meeting