Deductible expenses
In order to determine the net return on real estate capital all expenses necessary to obtain may deducted from the gross returns, as well as the amounts allocated to the amortization of the property and other assets transferred it, provided that they correspond to its effective 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.
Covid-19: In the case of modification of the amount set as the rental price or deferral of its enforceability, the taxpayer may deduct the expenses incurred in said period, without the imputation of real estate income provided for in article 85 of the LIRPF, resulting in the application of the reduction established in the aforementioned article 23.2 of the Law of PIT when it comes to leasing real estate intended for housing.