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V1798-18 21 June 2018 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · cláusula suelo

No need to adjust main residence tax deduction if floor clause refund is used to repay mortgage principal

A taxpayer inquired whether receiving a refund due to a floor clause requires adjusting the tax deduction for investment in the main residence, provided the funds are used to repay the loan principal. The Directorate General for Taxes (DGT) ruled that no adjustment is necessary if the funds are applied directly to the amortisation of the principal.

The question raised

Having applied the deduction for investment in the primary residence regarding the refunded amount at the time, the question concerns the regularization of the situation.

The DGT's ruling

If the amounts received from the refund of floor clauses are directly allocated by the financial institution to reduce the principal of the loan, the obligation to add the unduly deducted amounts to the net tax liability shall not apply. For this to be valid, the allocation to early repayment must be carried out immediately. Otherwise, the regularization of the deduction must be carried out for the non-prescribed tax years.

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