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V2989-20 5 October 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · deducción por inversión en vivienda habitual

Deduction for investment in main residence may be resumed if it exceeds previous deducted amounts

The taxpayer asks whether they can reapply the deduction for investment in their main residence after returning to live in a property acquired in 2006. The DGT rules that this is possible provided that the amounts paid for the new property exceed those invested in previous properties for which deductions were previously claimed.

The question raised

A) Whether it is possible to resume the deduction as of January 1, 2019, given the intention to reside in it for more than three years.

The DGT's ruling

Taxpayers who acquired their residence before 2013 may apply the transitional regime of the eighteenth transitional provision of the Personal Income Tax Law (LIRPF). To initiate or restart the deduction, the amounts paid for the acquisition must exceed the sum of the amounts invested in previous primary residences that were subject to effective deduction, plus any capital gains exempt due to reinvestment, if applicable. Upon re-establishing the residence as their primary residence, the deduction may be applied to the amounts paid from that date onwards, provided that the legal requirements are met.

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