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V1666-17 27 June 2017 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · deducción por inversión en vivienda habitual

Loss of tax deduction for investment in main residence when it ceases to be the habitual residence

The taxpayer asks whether they can continue to apply the tax deduction for investment in their main residence after ceasing to reside there in 2017. The Directorate General for Taxes (DGT) rules that the deduction ceases once the property is no longer the habitual residence, except in cases involving employment or professional obligations.

The question raised

Whether the deduction for investment in the habitual residence may be applied for the 2017 tax year, the year in which it ceases to constitute the habitual residence; and whether it may continue to be applied after it ceases to constitute the habitual residence.

The DGT's ruling

To apply the transitional regime, the taxpayer must have applied the deduction for amounts paid prior to 2013. The deduction may be applied in the year of the change until the date on which the dwelling ceases to be a habitual residence. From that moment, the dwelling loses its status as a habitual residence and the right to the deduction is lost, unless the change is due to a position or employment.

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