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V2289-20 6 July 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 changes, subject to certain conditions

A taxpayer who was already claiming the deduction for having acquired their home before 2013 asks whether they can continue to do so after dissolving a co-ownership and replacing their mortgage with a new one. The DGT rules that they may continue to deduct the proportional part linked to the property acquired before 2013, provided that 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 the primary residence may continue to be applied, as has been done until now.

The DGT's ruling

The substitution of one loan for another does not exhaust the right to deduction if the new loan is effectively used for the amortization of the previous one. The amounts paid for the new loan may be deducted in the proportional part allocated to the amortization of the principal of the original loan attributable to the portion of the dwelling acquired before 2013. The portion of the new loan corresponding to an increase in the principal shall not be deductible. The acquisition of a new undivided interest after 2012 does not entitle the taxpayer to the deduction for that specific part.

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