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V0815-24 22 April 2024 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · ganancia patrimonial

Mortgage repayments are not transfer costs, but reduce the amount eligible for reinvestment relief

The taxpayer asks how to calculate capital gains if there is an outstanding mortgage and whether that loan can be used to reduce the transfer value. The Tax Agency clarifies that mortgage repayments are not considered a sale expense, but they do allow for a reduction in the total amount received when calculating the reinvestment exemption.

The question raised

1. Method of calculating the capital gain in the Personal Income Tax and whether the amount of the loan pending amortization can be considered as a lower transfer value.

The DGT's ruling

The amortization of the mortgage loan is not an expense inherent to the transfer of the dwelling. However, for the exemption due to reinvestment in the primary residence, the total amount obtained shall be calculated by reducing the transfer value by the principal of the loan pending amortization. In the case of reinvestment in construction, the two-year reinvestment period must be met and the works must be completed within the four-year period established in the RIRPF.

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