Skip to content
Back to index
V1593-24 1 July 2024 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · deducción por inversión en vivienda habitual

Right to tax deduction for main residence investment maintained when replacing a mortgage loan

The applicant asks whether the right to a tax deduction is maintained when cancelling an old mortgage loan and taking out a new one with a different entity for their main residence. The Directorate General for Tax (DGT) responds that if the cancellation and the new contract are carried out as a single transaction, the right to deduct instalments and expenses is preserved.

The question raised

Whether, after performing the restructuring operation through cancellation and new loan contracting, the same right to deduction will be maintained 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 right to deduction, provided that the new loan is intended to amortize the previous one. If the cancellation and the signing of the new contract occur simultaneously, the annuities and derived expenses (including the registry cancellation) are deductible. However, the portion of the installments corresponding to an increase in the principal intended for other purposes shall not be deductible. In the event that the cancellation and the new contracting occur at different times and without a direct connection, the right to deduction for the new financing would be lost.

Book your free first meeting