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 rentals of properties subject to and not exempt from the Value Added Tax (VAT) or the Canary Islands General Indirect Tax (IGIC), the deductible expenses will be computed excluding VAT or, where applicable case, the IGIC .
Covid-19: In the event of a change in the amount set as the rental price or a deferral of its due date, 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 being applicable, with the reduction established in the aforementioned article 23.2 of the Income Tax Law being applicable when it concerns the leasing of real estate intended for housing.