Doctrine by topic · DGT Observatory

Utilities: 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

Refined position High confidence 21 rulings · 2014–2024

Current position

Utilities for the primary residence (water, electricity, telephone, etc.) are not deductible if they are used simultaneously for private needs. In the case of partial use, the deduction of utilities through the 30% rule of the area allocated to the activity is only applicable if the requirements for economic use are met. If the payer assumes electricity and gas consumption that can be individualized, these constitute additional income from employment for the employee.

The DGT's position has moved from requiring proof of exclusive connection for the deduction of utilities to applying the rule of 30% of the area allocated to the activity as of 2018. However, recent doctrine points out once again that the deduction is not appropriate if the utilities are used simultaneously for private purposes. The latest ruling clarifies the treatment of these consumptions when they are assumed by the payer in the employment context.

Turning points

  1. V1957-19

    Introduces the application of the 30% percentage based on the proportion of square meters allocated to the activity for the deduction of utilities as of 2018.

  2. V1201-24

    Establishes that individualizable electricity and gas consumption assumed by the payer constitutes additional income from employment.

Analysis based on 20 of 21 rulings with a stated position. Updated 25 September 2026.

Rulings on this topic

21
V0771-23 31 Mar 2023

VAT deduction for home use in business activity possible

SG de Impuestos sobre el Consumo
bien de inversiónderecho a la deducciónafectación parcialregularizaciónactividad económica LIVA — Ley 37/1992 del IVA art. 4.unoLIVA — Ley 37/1992 del IVA art. 5.uno
Affects CompanyExpat · Non-residentIndividual
V0376-15 2 Feb 2015

Telecommunications expenses are only deductible if used exclusively for economic activity

SG de Impuestos sobre la Renta de las Personas Físicas
rendimientos del capital inmobiliariorendimientos de actividades económicasgastos deduciblesafectación de elementos patrimonialessuministros LIRPF — Ley 35/2006 del IRPF art. 22.1LIRPF — Ley 35/2006 del IRPF art. 23.1.a).1º
Affects CompanyExpat · Non-residentIndividual

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