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A taxpayer inquired whether the right to claim a tax deduction for investment in their main residence remains valid after switching from a variable-rate mortgage to a fixed-rate mortgage through subrogation or a new contract. The Directorate General for Tax (DGT) ruled that the right is preserved if the operation is carried out as a single transaction or via loan subrogation.
The ruling provides legal certainty for taxpayers switching mortgage types, ensuring that the transition from variable to fixed rates does not result in the loss of existing tax benefits related to main residence investment, provided specific procedural conditions are met.
The tax team reviews your specific situation.
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