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A taxpayer inquired whether replacing an existing mortgage with a new one from a different entity would forfeit the right to the tax deduction for investment in their main residence. The Directorate General for Tax (DGT) ruled that substituting one loan for another does not exhaust the right to the deduction, provided the new loan is used to repay the previous one.
This ruling provides legal certainty for taxpayers looking to refinance their mortgages, confirming that switching lenders or terms does not trigger the loss of tax benefits related to their primary residence.
The tax team reviews your specific situation.
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