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V2648-23 29 September 2023 · 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 maintained if current loan is cancelled and a new one is taken out simultaneously

A taxpayer inquired whether they could continue to claim tax relief for investment in their main residence when switching banks by cancelling their existing loan and taking out a new one. The Directorate General for Taxes (DGT) ruled that if the transaction is carried out simultaneously, the right to the deduction is not lost.

The question raised

Whether, after performing the restructuring operation through cancellation and new loan contracting, the same right to deduct will be held for the amounts it amortizes or satisfies. Whether the expenses generated by the operation are deductible.

The DGT's ruling

The novation, subrogation, or substitution of a loan does not exhaust the possibilities of applying the deduction, provided that the new loan is intended to amortize the previous one. If the cancellation and the signing of the new contract are carried out in a single act, the expenses generated by both operations are deductible. However, if a cancellation occurs and subsequently, without a direct connection, a new loan is contracted, the right to the deduction for the new financing would be lost. The portion of the new loan intended to finance purposes other than housing shall not be deductible.

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