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V5440-16 23 December 2016 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · deducción por inversión en vivienda habitual

Interest-based benefits in kind may be included to determine the start of the main residence investment tax relief

The taxpayer asks whether benefits in kind received through preferential loan interest rates can be counted when determining when the investment in a new home exceeds that of the previous one. The DGT rules that they can, provided these benefits were included in the deduction base for the previous residences.

The question raised

Having acquired a new primary residence prior to January 1, 2013, in order to determine from what amount of investment the deduction for investment in a primary residence may begin to be applied, whether the amount of such benefits in kind, which have already been included in the subsequent deduction bases, may be included among those invested and deducted for the previous primary residence.

The DGT's ruling

To determine when the deduction for investment in a primary residence may be initiated, the amounts paid for the new residence must exceed the sum of those invested in the previous residences that were subject to deduction. In this calculation, both the interest actually paid and the benefits in kind for interest included by the taxpayer in their tax return may be included. This is applicable both to the regulations in force as of December 31, 2012, and to the subsequent transitional regime.

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