Skip to content
Back to index
V3038-21 7 December 2021 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · deducción por inversión en vivienda habitual

Possibility of claiming main residence investment tax relief on loans with non-acquiring joint debtors

A married couple enquired whether they could deduct the full amount of mortgage instalments for a loan where their parents-in-law were also listed as joint debtors. The Directorate General for Taxes (DGT) explains how to apportion the deduction and how loan modifications affect the investment and other taxes.

The question raised

Whether the total amounts paid by the owners of the property, the applicants, are subject to deduction for investment in the primary residence until the total amortization of the loan, given its status as a primary residence.

The DGT's ruling

In a joint and several loan involving non-acquirers, each acquirer may deduct the portion of the principal corresponding to them and the portion lent to them by the other borrowers for the purchase, provided it is proven that the funds are their own. Following a novation that releases the non-acquirers, the deduction remains possible for both the novated mortgage loan and the new personal loan intended to amortize the former. To avoid Inheritance and Gift Tax upon novation, it must be proven that the assumption of the debt constitutes the repayment of a prior loan from the parents to the children.

Book your free first meeting