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V4805-16 10 November 2016 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · deducción por inversión en vivienda habitual

99.5% deduction for main residence investment possible if parental loan is proven

A taxpayer who owns 99.5% of a property but is listed as a joint borrower alongside their parents (who own 0.5%) asks whether they can deduct the percentage of mortgage instalments they actually pay. The DGT rules that they may deduct their share of the mortgage, as well as their parents' share, provided they can prove that the parents lent them the capital required to cover that portion of the mortgage.

The question raised

Given that the consultant satisfies at least 99.5% of all amounts linked to the loan, the possibility on their part to claim the deduction for investment in the primary residence based on the amounts satisfied for said 99.5%, coinciding with the percentage of ownership acquired of the residence, even though there are still three borrowers.

The DGT's ruling

The taxpayer may claim the deduction for the amounts corresponding to them as a joint borrower (one third). To deduct the remainder of the installments paid (99.5% in total), they must prove that the other borrowers have lent them their portion of the loan, agreeing on repayment with the same interest rate and covering the inherent expenses. This proof must demonstrate that the money received from the parents is used to reduce the debt with them through deposits into the loan account.

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