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A taxpayer inquired whether they could deduct the full amount of a €5,000 early repayment made over three months, or only the portion corresponding to the period the property served as their primary residence. The Directorate General for Taxes (DGT) ruled that the full amount is deductible provided the repayment was completed while the property maintained its status as a primary residence.
This ruling clarifies the eligibility criteria for tax deductions related to early mortgage repayments, confirming that the status of the property as a primary residence at the time of the transaction is the determining factor.
The tax team reviews your specific situation.
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