Skip to content
Back to index
V3076-18 28 November 2018 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · deducción por inversión en vivienda habitual

Deduction for main residence investment split 50/50 if mortgage payments are made with community property funds

A taxpayer inquired whether they could claim a 100% deduction for mortgage payments on a home acquired before marriage, even though payments are now made using community property funds. The Directorate General of Taxes (DGT) ruled that, as these are community funds, the amount of each payment must be attributed equally to each spouse.

The question raised

Whether the taxpayer is entitled to the deduction for investment in the primary residence based on 100% of the amounts paid for the mortgage loan or on half of said amounts.

The DGT's ruling

For the deduction for investment in the primary residence, ownership of the property and its use as the primary residence are required. Under the community property regime, if the property is a family home, ownership is distributed according to the contributions of each spouse and the community property. Payments made with community funds to amortize a mortgage loan must be attributed 50% to each spouse, regardless of who is the holder of the bank account. The spouse who acquired the property before marriage may only deduct half of the payments made with community funds and the portion corresponding to their own separate funds.

Book your free first meeting