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V2092-20 23 June 2020 · 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 may be maintained following mortgage novation

The taxpayer asks whether they can continue to claim the deduction for investment in their main residence after the dissolution of a co-ownership agreement and a subsequent change in mortgage terms. The Directorate General for Taxes (DGT) rules that the taxpayer may continue to deduct the proportional part of the new loan used to repay the original loan acquired before 2013.

The question raised

Whether, following the change in mortgage conditions, the deduction for investment in the primary residence may continue to be applied, as has been done until now.

The DGT's ruling

The modification of financing through novation, subrogation, or substitution of a loan does not exhaust the right to deduction, provided that the new loan is intended to amortize the previous one. The amounts paid may be deducted in the proportional part corresponding to the principal of the original loan attributable to the taxpayer. The part of the new loan corresponding to an increase in the principal or to the acquisition of new undivided shares of the dwelling carried out after 2012 shall not be deductible.

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