Skip to content
V0285-24 ·4 March 2024 ·consulta-vinculante Medium impact
Tax

Right to tax deduction for main residence investment maintained if current mortgage is cancelled and a new one is taken out simultaneously

A taxpayer inquired whether switching banks by cancelling an existing mortgage and taking out a new one would result in the loss of the tax deduction for investment in their main residence. The Directorate General for Tax (DGT) ruled that if the cancellation and the new contract are executed as a single transaction, the right to the deduction is maintained for the instalments paid.

In 6 key points

How it affects those involved

This ruling provides legal certainty for taxpayers refinancing their mortgages, ensuring that switching lenders does not trigger the loss of tax benefits related to main residence investment, provided the process is continuous.

Lifecycle

2024-03-04PublishedPublished in the BOE
Official text Based on BOE data (boe.es). Information, not advice.

Does this provision affect you?

The tax team reviews your specific situation.

Talk to the tax team
This analysis is informational only and does not constitute legal advice or create a client-adviser relationship. BM Consulting.
Email
Contact