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V2871-18 5 November 2018 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del capital inmobiliario

Utility expenses are only deductible for the period the property is rented

A owner of a tourist accommodation property asked whether utility expenses can be deducted for the entire year. The Directorate General for Taxes (DGT) ruled that, as these constitute income from real estate capital, only the expenses corresponding to the period the property is leased are deductible.

The question raised

Whether the expenses corresponding to electricity, water, gas, and telecommunications utilities may be considered deductible expenses during the 365 days of the year.

The DGT's ruling

To determine the net yield from real estate capital, the expenses necessary for obtaining the yields are deducted. Therefore, utility expenses may only be deducted for the portion of the tax period in which the property is rented.

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