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V0426-17 17 February 2017 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · deducción por inversión en vivienda habitual

Deduction not permitted for the portion of a property not owned, even if mortgage instalments are paid

A divorced taxpayer inquired whether they could deduct the full amount of mortgage instalments for their main residence, despite only owning half of the property. The Directorate General for Taxes (DGT) ruled that only the portion corresponding to their ownership percentage is deductible.

The question raised

A. Possibility of claiming the deduction for investment in the primary residence for the total amount paid for the loan, and not solely based on the percentage of ownership held over the property which continues to constitute their primary residence.

The DGT's ruling

In cases of divorce or separation, the taxpayer may continue to claim the deduction for investment in the primary residence for the amounts paid for the acquisition of their undivided share of ownership. Any amount paid corresponding to the share of which they are not the owner shall be considered a loan or a gift in favor of the other co-owner. As of 2013, only those who had paid amounts for the acquisition prior to said date and had claimed the corresponding deduction may apply this transitional regime.

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