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V1740-24 15 July 2024 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · cláusula suelo

Tax deduction for main residence must be regularised if floor clause refund is paid into account

The inquirer asks whether they must return the tax deduction for their main residence if the floor clause refund is used to repay the mortgage. The Directorate-General for Tax (DGT) responds that if the funds are deposited into the taxpayer's account, the deduction must be regularised, as the bank did not directly reduce the principal amount.

The question raised

Given that the deduction for investment in the primary residence was applied at the time to the amount refunded, the question is raised regarding the regularization of the situation, taking into account that the refund of the excess paid due to the application of the floor clause will be applied to the amortization of the capital.

The DGT's ruling

If the refund of the floor clause is deposited into the taxpayer's account, it is not excluded from the regularization of deductions. To avoid an addition to the net tax liability, the financial institution must allocate the amounts directly to reduce the principal of the loan. Upon depositing the amount into the account, the taxpayer must add to the state and regional net tax liability the amounts unduly deducted in the non-prescribed fiscal years.

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