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V1572-20 26 May 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · deducción por inversión en vivienda habitual

Deduction for principal residence may be applied in the year of relocation if requirements are met

A taxpayer inquired whether they could apply the deduction for investment in their principal residence in 2020, the year they intend to relocate and cancel their current mortgage. The Directorate General for Taxes (DGT) ruled that the deduction base may include amounts paid in 2020, provided they are paid before the property ceases to be the principal residence and the capital increase requirement is satisfied.

The question raised

Possibility of applying the deduction in 2020 based on the maximum deduction limit of 9,040 euros per spouse, having amortized a higher amount and having resided in the property for only a few months of the year.

The DGT's ruling

Taxpayers subject to the transitional regime may include in the deduction base the amounts paid during the tax year, including interest and amortization, provided that they are paid before the property ceases to be a habitual residence. However, to apply the deduction, it must be met that the net worth at the end of the tax period exceeds the value at the beginning by at least the amount of the investments made, without including interest or financing costs.

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