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V2533-14 29 September 2014 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · deducción por inversión en vivienda habitual

IBI, community fees and bank postage costs are not deductible for main residence investment tax relief

The taxpayer asks whether home insurance, community fees, IBI (Property Tax), and bank postage costs can be included in the main residence investment deduction. The DGT rules that IBI, community fees, and postage costs are not deductible, whereas home insurance is only partially deductible if it covers mandatory risks, or fully deductible if it is a condition of the loan.

The question raised

Possibility of including in the base for the deduction for investment in the primary residence the expenses for the following concepts: home insurance, community fees, Real Estate Tax (IBI), and postage expenses charged by the bank.

The DGT's ruling

IBI and community fees are not deductible as they are not inherent to the sale and purchase transaction. Bank postage expenses are not deductible as they are not directly linked to the mortgage loan. Regarding home insurance, only the portion covering mandatory risks under mortgage regulations is deductible, unless the contracting of insurance with additional coverage is a condition imposed by the lender.

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