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A taxpayer inquired whether they could continue to claim the deduction for investment in their primary residence after acquiring their ex-spouse's share and refinancing the mortgage. The Directorate General for Taxes (DGT) ruled that the new acquisition does not entitle the taxpayer to a deduction; however, the right to the deduction is maintained for the portion of the loan that finances the original acquisition made prior to 2013.
This ruling clarifies that refinancing or changing ownership shares does not trigger a new deduction right, but preserves the existing deduction for the specific portion of the debt linked to the original qualifying purchase.
The tax team reviews your specific situation.
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