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V1568-17 19 June 2017 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · deducción por inversión en vivienda habitual

Deduction for primary residence investment may be maintained following split ownership due to spouse's death

A taxpayer inquired whether they could continue to deduct mortgage amortisation for their primary residence following the death of their spouse, in a situation where ownership has been split between them (as usufructuary) and their children (as bare owners). The DGT ruled that this is possible provided the split ownership was involuntary and the property remains the residence of the family unit.

The question raised

Possibility for the taxpayer to apply the deduction for investment in the habitual residence based on the total amounts being paid since the death of their spouse for the 100% amortization of the loan, following the dismemberment of the full ownership held by the deceased between them and the descendants.

The DGT's ruling

Although the deduction requires full ownership, the right to apply it is recognized when the dismemberment of ownership (usufruct and bare ownership) occurs involuntarily due to the death of a spouse. To this end, the dwelling must have been originally acquired in full ownership by the spouses and must continue to be the habitual residence of the family unit. In this case, the right to the deduction is maintained in accordance with the transitional regime of the LIRPF.

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