Other expenses necessary to obtain returns
Regulations: Articles 23.1 a) 2 to 4 Law Personal Income Tax and 13 b) ag) Regulation Personal Income Tax
1. Taxes, surcharges and fees
Non-state taxes and surcharges are deductible, as well as state fees and surcharges such as, for example, IBI , fees for cleaning, collection of garbage, lighting, etc., provided that:
They affect the computed returns or the goods or rights producing them.
They do not have a sanctioning nature.
2. Amounts earned by third parties as a result of personal services
Amounts accrued by third parties in direct or indirect consideration or as a consequence of personal services, such as administration, security, concierge, garden care, etc are deductible. ##2##.
In particular, the fees of the community of owners when it comes to properties under horizontal ownership.
3. Expenses for formalizing the contract and legal defense
Expenses incurred by the formalization of the lease contract, sublease, assignment or constitution of the right and those of legal defense relating to the assets, rights or income are deductible.
4. Doubtful balances
Doubtful balances are deductible in 2022, provided that this circumstance is sufficiently justified. This circumstance is considered sufficiently justified:
When the debtor is in bankruptcy.
When more than six months have passed between the time of the first collection process carried out by the taxpayer and the end of the tax period, and a credit renewal has not occurred.
The operation of the deductibility of doubtful balances is conditioned on the prior inclusion of their amount as full income from real estate capital, since these income are attributed to the tax period in which they are payable by the recipient, as provided in article 14.1. a) of the Personal Income Tax Law .
When a doubtful balance is collected after its deduction, it will be computed as income in the year in which said collection occurs.
5. Insurance contract premiums
Premiums for insurance contracts are deductible, whether for civil liability, fire, theft, glass breakage or others of a similar nature on the assets or rights producing the income.
6. Services or supplies
Amounts destined for services or supplies (water, electricity, gas and internet, etc.) are deductible.
These expenses will only be deductible to the extent that they are effectively supported and paid by the lessor , in such a way that, if it were the lessee who pays and bears them, the lessor will not no amount could be deducted. However, it must be taken into account that, if the amounts of these expenses are passed on to the tenant, they will be computed as a full return on the real estate capital, and will, in turn, be deductible from said return.
7. Other necessary tax-deductible expenses
In addition to the concepts specifically listed above, any other expense is considered tax deductible as long as it is necessary to obtain the corresponding income.
Important: in relation to the annual expenses referred to with above, only and exclusively the expenses corresponding to the period of time in which the property is rented and generates income will be deductible, in the corresponding proportion in virtue of the principle of correlation of income and expenses. Consequently, they are not considered deductible expenses for the purposes of article 23.1 of the Income Tax Law , those generated during the time in which the property is not rented, even if it is available be able to be rented (in expectation of rent). Interpretative criterion established by the Supreme Court in Sentence number 270/2021, of February 25 (ROJ: STS 910/2021).