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V2955-18 14 November 2018 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del capital inmobiliario

A 3% rate must be applied to the higher of the acquisition cost (excluding land) or the cadastral value (excluding land)

The taxpayer asks which value to use when deducting depreciation for a property rented in France for which no cadastral value is available. The DGT rules that the deductible depreciation is 3% of the higher of the acquisition cost or the cadastral value, always excluding the value of the land.

The question raised

Which value must be taken for the deduction of the depreciation expense of said property which is being rented.

The DGT's ruling

To determine the deductible depreciation of a property, 3% shall be applied to the higher of two values: the satisfied acquisition cost (including expenses and taxes, but excluding the land value) or the cadastral value (excluding the land value). If the land value is unknown, it shall be calculated by prorating the acquisition cost between the cadastral values of the land and the construction. Each owner shall determine their depreciation based on their ownership coefficient.

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