Skip to content
Back to index
V2091-14 31 July 2014 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · deducción por inversión en vivienda habitual

Tax relief for main residence investment may be maintained after replacing a mortgage loan

Consultants have enquired whether they can continue to claim tax relief for investment in their main residence after replacing their mortgage with a new personal loan. The Directorate General for Tax (DGT) has ruled that replacing one loan with another to repay the previous one allows the right to the deduction to be maintained under the transitional regime.

The question raised

Possibility of continuing to claim the deduction from 2014 onwards following the cancellation of the loan used for the acquisition through the contracting of a new one; furthermore, considering the fact that the deduction for investment in the primary residence was abolished with effect from 2013.

The DGT's ruling

The substitution of one loan for another with the same guarantees and conditions does not exhaust the possibility of claiming the deduction, provided that the new loan is effectively used to amortize the previous one. The amounts paid through the new loan shall entitle the taxpayer to a deduction in proportion to the capital used to replace the original loan. To apply this right after 2013, it is necessary to comply with the requirements of the transitional regime of the eighteenth transitional provision of the LIRPF.

Book your free first meeting