Back to index
V2690-20 2 September 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del capital inmobiliario

Deductibility of expenses and depreciation in the letting of rooms in a primary residence

A homeowner has enquired about the deductibility of expenses and the application of tax reductions when renting out rooms in their home. The Directorate General for Taxes (DGT) has ruled that only expenses and depreciation proportional to the time and space rented are deductible, and that the 60% reduction applies provided the contract is for residential purposes and exceeds one year.

The question raised

(1) Deductibility of community fees, taxes, interest, utilities, and depreciation for Personal Income Tax (IRPF).

The DGT's ruling

Necessary expenses, utilities, and interest are only deductible in proportion to the time and space of the rented rooms. The depreciation of the property is limited to 3% of the higher value between the acquisition cost or the cadastral value (excluding land), and the depreciation of furniture is governed by the simplified depreciation table. The 60% reduction of the net yield applies if the lease is for a dwelling and the duration exceeds one year, excluding seasonal leases.

Book your free first meeting