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V2394-20 13 July 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · deducción por inversión en vivienda habitual

Main residence investment tax relief unavailable for property shares acquired after 2012

A taxpayer inquired whether they could deduct the full mortgage repayments after being awarded 100% ownership of their home through the termination of a co-ownership agreement. The Directorate General for Taxes (DGT) ruled that the newly acquired share does not qualify for the deduction as it was acquired after 2013.

The question raised

Whether, for the 2019 tax year, regarding the undivided share acquired in 2018 upon the termination of the co-ownership, they also have the right to apply the deduction for investment in the primary residence, being able to begin deducting based on the totality of the amounts paid in connection with the loan. Or whether, conversely, from the year in which the spouse resumes residing in the dwelling, they have the right to deduct 50 percent of the installments, as they appear as a borrower.

The DGT's ruling

The acquisition of a new undivided share of the dwelling after December 31, 2012, does not allow access to the transitional regime for the deduction for investment in the primary residence. The taxpayer may only continue to apply it for the amounts linked to the share acquired prior to 2013, if they were already applying it before. The spouse loses the right to the deduction from the moment the dwelling ceases to be their primary residence or from the moment they transfer their ownership, regardless of whether they continue to appear as a borrower in the loan.

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