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A taxpayer inquired whether they could continue to claim the tax deduction for investment in their principal residence after cancelling their current mortgage to take out a new one with a different entity, switching from a variable to a fixed rate. The Directorate General for Taxes (DGT) ruled that replacing one loan with another does not exhaust the right to the deduction, provided it is carried out in a single transaction and the new loan is used to repay the previous one.
The tax team reviews your specific situation.
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