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V2103-14 1 August 2014 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · deducción por inversión en vivienda habitual

Transitional tax relief for main residence deduction cannot be applied if the purchase is formalised in 2013

A query was raised regarding whether a rent-to-buy contract signed in 2012 allows for the application of the transitional regime for the main residence tax deduction. The Directorate General for Taxes (DGT) ruled that the transfer of ownership did not occur in 2012, but rather in 2013 upon the execution of the public deed.

The question raised

Whether, given the existence of a purchase commitment prior to the beginning of 2013, the transitional regime regulated in the eighteenth additional provision of the Personal Income Tax Law is applicable, thereby allowing the deduction for investment in the primary residence.

The DGT's ruling

The transfer of real estate requires title and mode; therefore, the delivery of keys under a rental agreement does not transfer ownership. The transfer occurs when both title and mode concur, which in this case occurred in the public deed of January 2013. As the property was legally acquired in 2013, the transitional regime of the eighteenth additional provision of the Personal Income Tax Law is not applicable.

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