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V3095-19 4 November 2019 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · deducción por inversión en vivienda habitual

100% of mortgage instalments may be deductible if proof is provided that the other borrower lent their share to the holder

A taxpayer asked whether she could claim the deduction for investment in her primary residence for the full amount of mortgage payments, despite being a joint borrower alongside her mother, while being the sole owner. The DGT ruled that, as joint and several borrowers, mortgage instalments are legally understood to be paid in equal shares, unless it can be proven that the other borrower lent their portion to the holder.

The question raised

Possibility for the consultant to apply the deduction for investment in the primary residence at 100%, based on the entirety of the payments made in connection with the mortgage loan, given that they are made in their capacity as the sole owner of the property.

The DGT's ruling

To deduct the entirety of the payments from a loan involving joint and several borrowers, the taxpayer must prove that the other borrower provided them with a loan for the amount necessary to complete the financing. Such proof must include a repayment agreement with the same interest rate as that of the entity and the coverage of inherent expenses. If this loan between private individuals is not proven, the deduction may only be applied to the portion that directly corresponds to them as a borrower.

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