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V3198-20 26 October 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · estimación directa

Deductibility of household utilities and subsistence expenses for the self-employed

The taxpayer inquires about the deductibility of utilities and subsistence costs in a property used partially for their business activity. The Directorate General for Taxes (DGT) clarifies the calculation method for utilities and the application of limits for subsistence expenses.

The question raised

Deductibility of utility expenses corresponding to the dwelling leased as a habitual residence and which is partially used for the development of the taxpayer's activity.

The DGT's ruling

Utility expenses (water, gas, electricity, telephony, and Internet) are deductible by applying 30% of the proportion of square meters allocated to the activity relative to the total. Subsistence expenses are deductible if incurred in catering and hospitality establishments using electronic payment methods, following the limits for employee per diems without requiring them to be in a municipality different from the place of residence or work. Expenses must be linked to the activity, correctly recorded, and justified.

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