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V1455-23 ·26 May 2023 ·consulta-vinculante Medium impact
Tax

Proportional deductibility of interest on a single mortgage following loan consolidation

The taxpayer asks whether, after consolidating three mortgages, they can continue to deduct interest proportionally for properties they rent out. The DGT rules that it is possible to deduct the proportional part of the interest from the new loan that was used to repay the original mortgages of the rented properties.

In 6 key points

How it affects those involved

This ruling clarifies that consolidating multiple mortgages into a single loan does not prevent the proportional deduction of interest related to rental properties, provided the funds were used to settle the original property-specific debts.

Lifecycle

2023-05-26PublishedPublished in the BOE
Official text Based on BOE data (boe.es). Information, not advice.

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This analysis is informational only and does not constitute legal advice or create a client-adviser relationship. BM Consulting.
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