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V1917-25 15 October 2025 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · deducción por inversión en vivienda habitual

Deduction for home ownership can be maintained upon loan replacement

The consultant asked whether the deduction for home ownership could continue after replacing a personal loan with a mortgage to pay off the first. The DGT confirms that loan replacement does not extinguish the right to deduction, provided the new loan is used to repay the previous one.

The question raised

Possibility of continuing to claim the deduction for investment in the primary residence for the amounts paid towards the amortization of the new loan.

The DGT's ruling

The substitution of one loan for another with different conditions does not imply the conclusion of the investment financing process. The installments of the new loan (principal and interest) entitle the taxpayer to the deduction in the proportional part attributable to the original loan intended for the primary residence. However, if a debt cancellation occurs followed by the subsequent obtaining of credit without direct continuity, it would be understood that these are distinct operations and the right to the deduction would be lost.

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