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V3379-14 23 December 2014 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · deducción por inversión en vivienda habitual

Converting cooperative contributions into capital does not affect housing construction tax relief if legal nature is maintained

A member of a housing cooperative inquired whether converting members' contributions into capital would affect the tax relief for investment in a main residence. The Directorate General for Taxes (DGT) ruled that the right is not lost if the conversion does not alter the legal nature of the funds as advance payments.

The question raised

Whether said transformation would affect the deduction for the construction of a primary residence.

The DGT's ruling

To deduct the construction of a dwelling, the amounts paid to the developer must be advances on the future dwelling. If the transfer of members' balances to capital does not alter the legal nature of said amounts as advances, maintaining the rights of the cooperative members and the obligations of the cooperative, the transformation does not affect the right to deduction. The transitional regime must be complied with if the amounts were paid before 2013.

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