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A taxpayer asks whether they can continue to claim a tax deduction for investment in their main residence after cancelling an old mortgage and taking out a new one with better terms. The Directorate General for Taxes (DGT) rules that replacing one loan with another does not exhaust the right to the deduction, provided the substitution is carried out simultaneously and the new loan is used to repay the previous one.
This ruling provides legal certainty for taxpayers refinancing their mortgages, ensuring that the transition to new financing terms does not result in the loss of existing tax benefits related to their primary residence.
The tax team reviews your specific situation.
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