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V3072-23 24 November 2023 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · capital inmobiliario

Façade repair works due to falling panels are classified as repair and maintenance expenses

A query was raised regarding whether works on the façade of a rental property constitute repair or improvement expenses. The DGT has determined that, as the works involve repairing fixings due to panels detaching, they are deductible repair and maintenance expenses.

The question raised

It is asked "whether they are considered repair and maintenance expenses for the fiscal year or improvement expenses".

The DGT's ruling

The works to repair the fixings of the stone slabs on the facade, prompted by a detachment and a municipal order, are considered repair and maintenance expenses. These expenses are deductible for the purpose of determining the net yield of real estate capital pursuant to Article 13 of the Personal Income Tax Regulations. They are not considered improvement expenses, as their purpose is to maintain the normal use of the asset.

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