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V2115-17 10 August 2017 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · cláusula suelo

Floor clause refunds are not included in the tax base and no regularisation is required if they reduce the principal

A query was raised regarding the tax treatment of interest refunds resulting from floor clauses that had previously been deducted as investments in the main residence. The DGT clarifies that these amounts are not taxable and explains how to regularise any improperly applied deductions.

The question raised

Regularization of the amounts applied as a deduction for investment in housing in previous years, which correspond to interest from a mortgage loan refunded to the taxpayer by the lending bank, pursuant to an agreement entered into between both parties for the refund of excess amounts paid due to the application of a floor clause.

The DGT's ruling

The refund of amounts due to floor clauses and their compensatory interest shall not be included in the personal income tax (IRPF) taxable base. If the refunded interest formed part of the base for deductions for primary residence or regional deductions in non-prescribed tax years, the amounts unduly deducted must be added to the state and regional net tax liability for the tax year in which the agreement is reached. No regularization shall be required if the financial institution applies the amounts directly to reduce the principal of the loan.

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