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A taxpayer wishes to cancel an old mortgage loan to enter into a new one, ensuring that a garage space is no longer included as collateral. The Directorate-General for Tax (DGT) rules that replacing one loan with another does not exhaust the right to the tax deduction, provided the new loan is used to repay the previous one.
The ruling provides legal certainty for taxpayers looking to refinance mortgages or change collateral terms without losing existing tax benefits related to main residence investments.
The tax team reviews your specific situation.
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