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V1439-17 6 June 2017 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · deducción por inversión en vivienda habitual

Tax deduction for main residence investment can be maintained when replacing a mortgage loan

The taxpayer asks whether they can continue to claim the tax deduction for investment in their main residence after performing a novation or subrogation of their mortgage loan. The Directorate General for Taxes (DGT) responds that this is possible provided the new loan is used to repay the previous one and all legal requirements are met.

The question raised

Possibility of continuing to claim the deduction for investment in the primary residence for the amounts paid for the amortization of the new loan. If affirmative, whether it can also be claimed based on the global expenses incurred in the cancellation and establishment of each loan, respectively.

The DGT's ruling

Replacing one loan with another does not exhaust the right to deduction, as it only modifies the financing conditions. The amortization installments, interest, and expenses of the new loan (including the registry cancellation of the previous one) entitle the taxpayer to deduction in the proportional part attributable to the original investment. However, if a debt cancellation and a new credit acquisition occur without continuity between them, the right to deduction for the new financing would be lost.

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