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V2499-14 24 September 2014 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · imputación de rentas inmobiliarias

Repair expenses for an unoccupied premises are not deductible under the imputed real estate income regime

A property owner inquires whether repair works carried out on a commercial premises that is not leased may be deducted. The DGT responds that the imputed income regime does not allow for the deduction of expenses, although they may be deductible once the premises is leased.

The question raised

Question posed Given that the property is intended for lease but remains unoccupied and the imputed real estate income regime applies, an inquiry is made regarding the deductibility of the expenses incurred for the performance of the aforementioned works.

The DGT's ruling

The imputed real estate income regime does not allow for the deduction of any expense. Repair and maintenance expenses carried out on a premises in expectation of lease will be deductible to determine the net yield of real estate capital once income is obtained from its lease. If the works are considered improvements, their cost shall be deducted through depreciation from the time the premises is leased. In the event that expenses exceed the gross yields, the excess may be deducted in the following four years, respecting the legal limits.

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