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V1950-17 19 July 2017 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · deducción por inversión en vivienda habitual

Right to deduction for investment in primary residence exercised via IRPF declaration

The consultant asks whether the right to deduction for investment in primary residence is exercised by filing the IRPF declaration or by notifying the payer via form 145. The DGT responds that the right is exercised exclusively through submission of the IRPF declaration.

The question raised

When is the right to the deduction for investment in the primary residence understood to be exercised: is it when the IRPF return is filed, including the amounts paid for mortgage loans eligible for deduction, or is said right also exercised through the communication made via Form 145.

The DGT's ruling

The exercise of the right to the deduction for investment in the primary residence (transitional regime) is carried out through the filing of the Personal Income Tax (IRPF) return, pursuant to the eighteenth transitional provision of the Personal Income Tax Law (LIRPF). The communication of data to the payer via Form 145 serves only to enable the application of a reduction in the withholding rate. Therefore, a taxpayer wishing to apply said deduction is obliged to file the IRPF return, even if their income does not exceed the legal thresholds for the obligation to file.

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