Skip to content
Back to index
V3146-18 11 December 2018 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del capital inmobiliario

Pre-rental repair costs are deductible if intended solely for future income generation

A query was raised regarding whether expenses incurred on a property before renting it out (air conditioning, boiler, flooring, and painting) are deductible. The DGT ruled that they are deductible provided they are carried out exclusively to prepare the property for lease and not for the owner's personal use.

The question raised

Whether, for the purposes of determining the net income from real estate capital, the aforementioned expenses incurred prior to the lease are considered deductible expenses.

The DGT's ruling

Repair and maintenance expenses incurred prior to the lease are deductible as income from real estate capital if they are directed exclusively toward the future generation of income and not toward the enjoyment of the owner. Deductibility is contingent upon the generation of rental income. The deductible amount may not exceed the total income obtained, although any excess may be offset in the following four years.

Book your free first meeting