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V2580-25 18 December 2025 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimiento neto del capital inmobiliario

Cancellation of mortgage costs can be deducted from rental property income

A property owner asks whether notary, registration and management fees from cancelling a mortgage on a rented property are deductible. The DGT confirms they are, as they are considered financing expenses.

The question raised

Possibility of deducting said expenses for the calculation of the net yield of real estate capital in the Personal Income Tax.

The DGT's ruling

Mortgage loan cancellation expenses, including notary, registry, and administrative fees, are deductible for the purpose of determining the net yield of real estate capital. This is because they are considered financing expenses, along with the interest on third-party capital invested in the acquisition of the asset.

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