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A taxpayer inquired whether they could continue to claim a tax deduction for investments in their main residence after switching banks to obtain better loan conditions. The Directorate General for Taxes (DGT) ruled that the novation or replacement of a loan does not interrupt the financing process nor exhaust the right to the deduction.
The ruling provides legal certainty for taxpayers seeking to refinance or switch mortgage providers without losing existing tax benefits related to their primary residence.
The tax team reviews your specific situation.
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