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V0166-14 27 January 2014 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · deducción por inversión en vivienda habitual

Deduction for investment in main residence may be restarted if new investment exceeds previous amounts

A taxpayer inquired whether they could apply the deduction for investment in their main residence to a new property after having previously applied it to another, and at what threshold. The DGT ruled that this is possible when the amounts paid for the new residence exceed those invested in the previous properties for which the deduction was claimed.

The question raised

A. Possibility of applying the deduction for the amounts paid for the acquisition of the dwelling starting from the commencement of its status as a new habitual residence, having previously applied it for a prior habitual residence. If affirmative, from what volume of investment may the deduction be initiated.

The DGT's ruling

When a dwelling begins or re-establishes itself as a habitual residence, the taxpayer may apply the deduction for the amounts paid for its acquisition. However, the deduction may only be initiated or restarted when the total amount paid for the new dwelling exceeds the amounts invested in previous habitual dwellings that were subject to deduction. Furthermore, the requirement must be met that the net worth at the end of the tax period exceeds the value at the beginning by the amount of the investments made.

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