Skip to content
Back to index
V1956-20 16 June 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · deducción por inversión

Investment deduction for new companies cannot be applied to housing cooperative contributions

A taxpayer inquired whether contributions made to a housing cooperative for the construction of a primary residence qualify for the tax deduction for investment in new or recently created companies. The Directorate General for Taxes (DGT) ruled that this deduction cannot be applied.

The question raised

Whether, regarding the amounts contributed to a housing cooperative as a member for the construction of their future primary residence, the taxpayer may apply the deduction for investment in newly or recently created companies as regulated in Article 68.1 of the Personal Income Tax Law.

The DGT's ruling

To apply the deduction under Article 68.1 of the Personal Income Tax Law (LIRPF), the entity must take the form of a Public Limited Company, a Limited Liability Company, a Labor Public Limited Company, or a Labor Limited Liability Company. Since a housing cooperative does not comply with any of these prescribed legal forms, the contributions are not subject to the deduction.

Book your free first meeting