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A taxpayer inquired whether they could continue to claim a tax deduction for investment in their principal residence after redeeming their current mortgage and taking out a new one with a different lender. The Directorate General for Taxes (DGT) ruled that replacing one loan with another does not exhaust the right to the deduction, provided the substitution is carried out simultaneously.
This ruling provides legal certainty for taxpayers refinancing their mortgages, ensuring that the transition between lenders does not result in the loss of tax benefits related to principal residence investments.
The tax team reviews your specific situation.
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