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V1928-17 19 July 2017 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · deducción por inversión en vivienda habitual

Deduction for investment in main residence cannot be applied if the building is constructed on a spouse's separate property

A taxpayer inquired whether they could deduct 50% of mortgage loan amortisations for a home built on land owned privately by their spouse. The Directorate General for Taxes (DGT) ruled that the taxpayer is not entitled to the deduction as they do not hold full ownership of the property.

The question raised

Whether the taxpayer is entitled to claim the deduction for investment in the primary residence, based on 50% of the amounts allocated to amortizing said loan.

The DGT's ruling

To apply the deduction for investment in the primary residence, it is necessary to hold full ownership of the property, even if held jointly. Under the community property regime, buildings constructed on the private land of one spouse belong to said spouse, pursuant to Article 1,359 of the Civil Code. Therefore, if the taxpayer is not the owner of the building, they cannot apply the deduction regardless of their right to reimbursement.

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