Professionals may deduct investment in new premises if used for their business activity

The application of investment deductions in Personal Income Tax (IRPF) often raises doubts when the acquired asset is not a new building, but rather an existing commercial premises. The Dirección General de Tributos (DGT) has recently clarified the scope of this tax benefit regarding real estate investments used for economic activities.

What the DGT has ruled

The query focused on determining whether the deduction for investment in new elements of tangible fixed assets or real estate investments used for business could be applied to premises that do not constitute a new building. The advisory body has ruled that the taxpayer may apply said deduction provided that all requirements demanded by current regulations are met and the acquired premises are considered a real estate investment used for their economic activity.

Furthermore, the criteria establish an important clarification regarding shared ownership: in the event that the asset is acquired jointly with a spouse, the amount of the deduction will only correspond to the ownership percentage held by the taxpayer.

What this means for you

If you are a self-employed professional or an individual carrying out an economic activity, the acquisition of commercial premises for the exercise of your activity may lead to tax benefits, even if the property is not a new construction from scratch. The determining factor is not the age of the building, but the nature of the investment and its direct use for the owner's economic activity.

This criterion confirms that a real estate investment used for business is a valid scenario for accessing the deduction, provided that the condition of being a new element is maintained within the parameters set by Law 35/2006 (IRPF Law).

What you should do

To ensure the correct application of this benefit, it is essential to carry out the following checks:

• Verify business use: Ensure that the premises are fully linked and used for the economic activity being carried out.
• Check ownership: If the purchase is made under a co-ownership regime with a spouse, calculate the deduction based exclusively on your own share of ownership.
• Documentation: Maintain documentation proving that the investment meets the requirements for new elements demanded by the regulations of Law 35/2006.

Since the application of deductions depends on the particular circumstances of each activity and the ownership structure, it is necessary to assess each situation individually.