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A taxpayer inquired whether they could continue to claim the tax deduction for investment in their principal residence after changing lenders through subrogation or a new loan agreement. The Directorate General for Taxes (DGT) ruled that modifying financing conditions does not exhaust the right to the deduction, provided the new loan is used to repay the previous one.
This ruling provides legal certainty for taxpayers refinancing their mortgages, ensuring that changing lenders or terms does not result in the loss of tax benefits related to their primary residence.
The tax team reviews your specific situation.
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