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V0392-20 20 February 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos

Debt owed to a parent to finance the construction of a main residence has no impact on Personal Income Tax

A taxpayer inquired whether a debt incurred with their father, who paid the construction company for their home, affects their Personal Income Tax (IRPF). The Directorate General for Taxes (DGT) ruled that such a debt has no bearing on the tax return.

The question raised

Impact on the taxpayer's Personal Income Tax (IRPF) regarding the debt incurred with his father, recognized in a private document and with an agreement for installment payments over the coming years.

The DGT's ruling

The debt incurred with the father for the financing of the construction of the primary residence has no impact on the Personal Income Tax (IRPF) return. This is due to the non-existence of the deduction for investment in the primary residence, as the circumstances required to apply the transitional regime are not met.

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