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V0197-21 9 February 2021 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · deducción por inversión en vivienda habitual

Tax relief for main residence investment cannot be applied if construction is completed after the four-year deadline

A taxpayer purchased a plot of land in 2011 to build a home, but construction was halted and only completed in 2017. The Directorate General for Tax (DGT) ruled that the taxpayer cannot benefit from the transitional regime for the main residence investment deduction.

The question raised

Whether the current transitional regime is applicable to allow for the deduction for investment in a primary residence.

The DGT's ruling

To apply the transitional regime, construction works must be completed within a period not exceeding four years from the start of the investment. The four-year period does not allow for extensions due to personal reasons not attributable to the taxpayer. As the works were completed in 2017, having started the investment before 2013, the permitted time limit has been exceeded. Therefore, there is no entitlement to the deduction.

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