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V2093-20 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 main residence investment may be maintained after mortgage novation under certain conditions

A taxpayer who previously claimed the deduction based on 66% ownership of a property acquired before 2013 seeks clarification on whether they can continue to do so following a dissolution of co-ownership and a mortgage novation. The Directorate General of Taxes (DGT) rules that the taxpayer may continue to deduct the proportional part linked to the property acquired before 2013, provided the new loan is used to repay the previous one.

The question raised

Whether, following a change in mortgage conditions, the deduction for investment in primary residence may continue to be applied, and in what percentage and under what conditions.

The DGT's ruling

The deduction for investment in primary residence is maintained for amounts linked to the undivided share acquired before 2013, provided that the legal requirements are met. The novation or substitution of a loan does not exhaust the right to the deduction if the new loan is effectively used for the amortization of the original loan. Only the annuities corresponding to the proportional part of the original loan capital attributable to the taxpayer shall be deductible. The part of the new loan corresponding to an increase in the principal or to the part of the property acquired after 2012 shall not be deductible.

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