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V2483-20 21 July 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del capital inmobiliario

Property depreciation must be deducted proportionally to the rental period

A query was raised regarding whether property depreciation expenses used to calculate income from real estate assets must be prorated based on the duration of the lease. The Directorate General for Taxes (DGT) ruled that the deduction is only permissible for the portion of the tax period during which the property is rented.

The question raised

Whether the real estate depreciation expenses deductible from income from real estate capital in Personal Income Tax (IRPF) must be prorated according to the period of time during which said property has been leased.

The DGT's ruling

The deductibility of real estate depreciation expenses shall only apply to the portion of the tax period during which the property is rented. Therefore, these amounts must be calculated proportionally to the number of days in the tax period during which the property is leased, by virtue of the necessary correlation between expenses and income.

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