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Practical manual for Income Tax 2023.

Deductible expenses

Regulations: Articles 26.1 b) Law IRPF and 20 Regulation IRPF

In the following cases:

  • Income from the provision of technical assistance.

  • Income from the leasing of movable property, businesses or mines.

  • Income from subleasing received by the sublessor.

The expenses necessary to obtain them, as well as the amount of the deterioration suffered by the assets or rights from which the income comes, will be deductible from the total income.

For these purposes, the expenses considered deductible are those provided for as such for the real estate capital gains discussed in the previous chapter, the exception that the limit provided for interest and other financing expenses and repair and maintenance expenses is not applicable, so in this case they may give rise to negative returns.

Likewise, the determination of deductible expenses does not include the amortization of the real estate to be subleased, since it is necessary that the amortization falls on real estate owned by the taxpayer, which does not occur in the case of subleasing.