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V3083-21 9 December 2021 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · deducción por inversión en vivienda habitual

Right to tax deduction for main residence investment maintained when replacing or increasing a mortgage under certain conditions

A taxpayer inquired whether they could continue to claim tax deductions for the repayment of their main residence after cancelling their current mortgage to take out a new one, even if the principal amount is increased. The Directorate General for Tax (DGT) ruled that replacing or increasing a loan does not exhaust the right to the deduction, provided the new loan is used to repay the previous one.

The question raised

Whether, after carrying out the restructuring operation through cancellation and new contracting, due to the resulting form of indebtedness, the same right to deduction will be maintained for the amounts amortized or satisfied. And whether, in the case of increasing the principal, the deduction would also be maintained.

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