Deductible expenses

To determine the net income from real estate, taxpayers can deduct from the total earnings all of the expenses necessary for its acquisition, as well as sums corresponding to the depreciation of the building and other goods transferred along with it, provided that these are in accordance with the real depreciation.

In the case of leases of properties subject to and not exempt from Value Added Tax (VAT) or the Canary Islands General Indirect Tax (IGIC), deductible expenses will be computed excluding the VAT or, where appropriate, the IGIC.

1. Expenses necessary to obtain returns: interest and other financing and conservation and repair expenses
2. Other expenses necessary to obtain returns
3. Amounts intended for amortization
4. Compensation for lease contracts prior to May 9, 1985