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Principle of Correlation: DGT doctrinal evolution

How the DGT's position on this topic has evolved, and the rulings it rests on.

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How the DGT's position has evolved

Settled doctrine High confidence 8 rulings · 2014–2023

Current position

Expenses are deductible for IRPF (Personal Income Tax) if they are correlated with the generation of income, are recorded in the accounts, and are imputed on an accrual basis. In the case of housing utilities, a proportional deduction is applied based on professional use and the area allocated to the activity. Mixed-use motives are not considered deductible for failing to comply with the principle of correlation with income.

The DGT's position remains stable in the application of the principle of correlation, always requiring a link to income and accounting records. The doctrine has moved from treating generic cases of deductibility to applying specific proportionality criteria for housing utilities and the exclusion of mixed-use elements.

Turning points

  1. V2554-23

    Establishes the application of a proportionality criterion for housing utilities and determines that mixed-use motives do not comply with the principle of correlation with income.

Analysis based on 8 of 8 rulings with a stated position. Updated 1 October 2026.

Rulings on this topic

8
V2075-21 12 Jul 2021

VAT and IRPF deductions depend on exclusive allocation to professional activity

SG de Impuestos sobre la Renta de las Personas Físicas
sectores diferenciados de actividadprincipio de correlacióngastos de manutenciónactividades exentasdeducción de cuotas LIRPF — Ley 35/2006 del IRPF art. 28.1LIRPF — Ley 35/2006 del IRPF art. 30.2.c
Affects CompanyExpat · Non-residentIndividual
V3276-14 5 Dec 2014

Property tax (IBI) is deductible for Corporation Tax if it is a contractual obligation

SG de Impuestos sobre las Personas Jurídicas
deducibilidad de gastosimpuesto sobre bienes inmueblesprincipio de correlacióndevengoobligación contractual TRLIS — RDLeg 4/2004 (derogado por la Ley 27/2014) art. 10.3TRLIS — RDLeg 4/2004 (derogado por la Ley 27/2014) art. 14
Affects CompanyExpat · Non-residentIndividual

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