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V2409-22 18 November 2022 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · deducción por inversión en vivienda habitual

Right to main residence investment tax relief preserved when cancelling and contracting a new loan simultaneously

A taxpayer inquired whether they could continue to claim tax relief for investment in their main residence after cancelling their current mortgage and entering into a new one to change the terms. The Directorate General for Taxes (DGT) ruled that if the cancellation and the new contract are carried out simultaneously, the right to the deduction is maintained.

The question raised

Whether, after carrying out the restructuring operation through the cancellation and new contracting of a loan, the same right to deduction will be held for the amounts amortized or satisfied by it. Likewise, it asks whether the expenses generated by the operation are deductible.

The DGT's ruling

The novation or substitution of a loan does not exhaust the right to deduction, provided that the new loan is intended to amortize the previous one. If the cancellation and the signing of the new contract occur in a single act, the installments (principal and interest) and the expenses generated by the operation are deductible. However, the proportional part of the annuities corresponding to an increase in the principal intended for purposes other than the acquisition of the dwelling shall not be deductible.

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