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V2837-23 19 October 2023 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · deducción por inversión en vivienda habitual

The right to the deduction for investment in primary residence is maintained if the current loan is cancelled and a new one is contracted simultaneously

A taxpayer inquires whether, by changing banking entities through the cancellation of their current mortgage and the contracting of a new one, they maintain the right to the deduction for investment in primary residence and whether the expenses of the operation are deductible. The DGT responds that, if the operation is simultaneous, the right is maintained and the associated expenses are deductible.

The question raised

Question posed: Whether, after performing the restructuring operation through the cancellation and new contracting of a loan, the taxpayer will have the same right to deduct the amounts that this 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 for the amortization of the previous one. If the cancellation and the signing of the new contract are carried out in the same simultaneous act, the annuities, interest, and cancellation expenses shall be deductible in the proportional part attributable to the original loan. The part of the new principal intended to finance concepts other than the acquisition of the residence shall not be deductible. If the cancellation and the new contracting occur at different times and without a direct connection, the right to the deduction for the new financing would be lost.

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