Compensation for lease contracts prior to May 9, 1985

Regulations: Third transitional provision Law IRPF

In determining the income from real estate capital derived from lease contracts entered into prior to May 9, 1985, which do not enjoy the right to a rent review of the contract, the amount corresponding to the amortization of the property will additionally be included as a deductible expense, while this situation persists and as compensation. Thus, in these situations, the amortization expense may be computed twice: once as a tax-deductible expense in accordance with the rules for determining net income from leased properties discussed above, and once again as compensation.