Deduction for investment in primary residence: possibility of reapplying it

The Directorate General of Taxes (DGT) has issued a relevant ruling for taxpayers who own homes acquired before 2013 and who, after a period of absence, decide to reside in them again. The inquiry focused on determining whether it is possible to once again claim the deduction for investment in the primary residence under these circumstances.

What the DGT has ruled

The advisory body has ruled that if a home has already consolidated the deduction in the past, the taxpayer is entitled to reapply it at the moment said property once again constitutes their primary residence. For this to be effective, certain technical requirements must be met:

• Calculation base: The amounts serving as the base for the deduction will be those paid since the new commencement of residency.
• Consolidation: For these new deductions to be consolidated, the home must regain its status as a primary residence through effective and permanent use for a minimum period of three years.

This criterion is based on the regulations of Personal Income Tax (LIRPF Law 35/2006) and its Regulation (RD 439/2007).

What it means for you

This ruling directly affects individuals who own a home acquired under the deduction regime prior to 2013 and who have temporarily ceased to reside in it. If you return to your former home, you do not lose the right to the deduction definitively; instead, you can begin a new application cycle based on the new payments made.

What you should do

In a situation involving a return to the primary residence in a home with a previous deduction, it is necessary to document the start of the new residency period. It is essential to prove the effective and permanent use of the home to comply with the three-year period required for the consolidation of the new deductions. Since each residency situation and the payments made may vary, it is recommended to assess each case individually to ensure compliance with legal requirements.