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V1147-25 1 July 2025 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · deducción por inversión en vivienda habitual

Right to home ownership deduction maintained if mortgage is cancelled and new loan taken simultaneously

A taxpayer asks whether the right to deduct home investment expenses is preserved when switching banks by cancelling the existing mortgage and taking out a new one at the same time. The DGT confirms that if the operation is carried out simultaneously, the right is preserved and associated costs are deductible.

The question raised

Whether, after performing the restructuring operation through cancellation and new loan contracting, the same right to deduct will be held for the amounts it amortizes or satisfies. Whether the expenses generated by the operation are deductible.

The DGT's ruling

The novation, subrogation, or substitution of a loan does not exhaust the possibility of applying the deduction, provided that the new loan is intended to amortize the previous one. If the cancellation and the signing of the new contract are carried out in the same simultaneous act, the annuities, interest, and cancellation or establishment expenses shall be deductible in the proportional part attributable to the investment in the dwelling. However, if a cancellation occurs and subsequently, without a direct connection, a new loan is contracted, the right to the deduction for the new financing shall be lost.

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