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V4728-16 ·8 November 2016 ·consulta-vinculante Medium impact
Tax

Early repayment cannot be applied exclusively to debt for assets other than the main residence

The inquirer asked whether it was possible to make early repayments only on the portion of a loan used for assets other than the main residence, so that the outstanding principal would only relate to the home. The Directorate-General for Tax (DGT) responded that it is not possible to individualise the debt for each asset financed within a single loan.

In 5 key points

How it affects those involved

This ruling clarifies that taxpayers cannot separate components of a single mortgage to isolate debt for tax deduction purposes, limiting the ability to claim deductions for investment in the main residence if the loan covers multiple assets.

Lifecycle

2016-11-08PublishedPublished 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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