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V1283-14 13 May 2014 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · deducción por inversión en vivienda habitual

Fixed-term deposits may qualify as housing accounts for main residence investment tax relief

A taxpayer inquired whether a fixed-term deposit could serve as a housing account to claim tax relief for investment in a future main residence. The Directorate General for Taxes (DGT) confirmed this is possible, provided the requirements of separation, exclusivity, and specific purpose are met, though it noted that this tax relief was abolished for new deposits made after 2013.

The question raised

Question raised A. Whether a fixed-term deposit is a valid product that can be considered a housing account for the purposes of claiming the deduction for investment in the primary residence, even if it is linked to an account where interest and, upon maturity, the principal are credited.

The DGT's ruling

A renewable deposit with one or several fixed-term installments may be considered a housing account if it is kept separate from other funds, allows for the tracking of its movements, and is exclusively intended for the acquisition or renovation of the primary residence. The four-year period to realize the investment is counted from the opening of the first deposit. However, following the abolition of the deduction in 2013, only amounts deposited before that date may be deducted, provided that the requirements of the transitional regime are met.

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