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V2016-18 5 July 2018 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · cláusula suelo

Refunds for floor clauses are non-taxable but require regularising main residence tax relief

A taxpayer has enquired about regularising their tax position after receiving a €5,082.12 refund following the removal of floor clauses. The Tax Agency has clarified that while the amount received does not constitute income, the taxpayer must repay any main residence tax relief previously applied incorrectly to those interest payments.

The question raised

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

The DGT's ruling

The refund of amounts due to floor clauses and compensatory interest is not included in the personal income tax (IRPF) taxable base. However, if such interest formed part of the base for the deduction for investment in the primary residence in non-prescribed tax years, the right to the deduction is lost. The amount to be regularized shall be the portion of the refund that effectively formed part of the deduction base, which shall be added to the state and regional net tax liability for the tax year in which the refund was received, without late payment interest.

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