The General Directorate of Taxes clarifies that being a co-debtor on a mortgage does not allow for rental expense deductions if one is not the owner. Only interest and financing expenses can be deducted.
According to information published by elperiodico.com, the General Directorate of Taxes (DGT), under the Ministry of Finance, has specified that being listed as a co-debtor on a mortgage loan does not entitle one to deduct financing expenses against the rental income from a property when one does not own the property or pay the installments.
This clarification is found in binding consultation V0576-26, dated March 11, 2026. The case presented involves a son who is listed alongside his mother as a co-debtor on the mortgage of a property she is going to buy to rent out. However, the mother will be the sole owner and will assume all payments.
According to the DGT's criteria, the rental income should be attributed solely to the mother. The son will not be able to declare it nor deduct financing expenses on his IRPF merely for being listed on the mortgage contract. The ownership of the property is the decisive factor, according to Article 11.3 of Law 35/2006.
Article 22 of the same law states that if a person is the sole owner of a rented property, the income belongs to them, even if another person is liable for the loan used to purchase it.
Some expenses can be deducted. Article 23 of the IRPF Law allows for the deduction of interest on borrowed capital invested in the purchase or improvement of the property and other financing expenses, provided that the legal requirements are met. What is not deductible is the full mortgage payment, as the repayment of the principal is not considered a rental expense.
Additionally, interest, financing expenses, and maintenance and repair costs cannot exceed the gross income obtained from each property. Any excess can be deducted in the four subsequent tax years, within the limits set by the regulations.
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