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V1609-20 26 May 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · deducción por inversión en vivienda habitual

Tax relief for investment in former main residence after divorce limited to taxpayer's share of ownership

A divorced taxpayer inquired whether they could deduct 100% of mortgage payments for their former main residence, despite only owning 50% of the property. The Directorate General for Taxes (DGT) ruled that they may only deduct amounts paid in proportion to their undivided share of ownership.

The question raised

Possibility of continuing the practice of the deduction in each fiscal year based on 100% of the amount paid or only 50%, based on the percentage of ownership maintained.

The DGT's ruling

In divorce cases, the taxpayer retains the right to the deduction for investment in the primary residence provided that the residence remains the home of the children and the parent with whom they reside. However, the deduction shall only be applied based on the amounts paid for the acquisition of the undivided share of ownership to which they are entitled. Any amount paid for the share of which they are not the owner shall be considered a loan or a gift in favor of the acquirer.

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