Impossibility of applying the deduction for investment in primary residence in 2024

The Directorate General of Taxes (DGT) has issued a ruling that clarifies the situation of taxpayers attempting to apply the deduction for investment in primary residence in their Personal Income Tax (IRPF) returns. The inquiry focused on the possibility of claiming this deduction for amounts paid through a loan for the acquisition of a home.

What the DGT has resolved

The advisory body has determined that the deduction for investment in primary residence was abolished from current regulations by Law 16/2012. According to the eighteenth transitional provision of the Personal Income Tax Law (LIRPF), this tax benefit is reserved exclusively for those taxpayers who met one of the following conditions before January 1, 2013:

• The acquisition of the primary residence.
• The payment of amounts intended for its construction.

In the specific case analyzed, since the acquisition of the home took place in the year 2024, the taxpayer does not meet the temporal requirement demanded by the regulations to access this tax incentive.

What it means for you

For individuals who purchase a primary residence in the current fiscal year or in years following the 2012 reform, this tax benefit is non-existent. It is not possible to apply the deduction for payments made, whether through own funds or through the amortization of a mortgage loan, if the acquisition date is after December 31, 2012.

What you should do

Given the non-existence of this deduction for new acquisitions, it is necessary to carry out tax planning based on current regulations. It is fundamental to verify the exact date of acquisition and compliance with the requirements of the transitional provision if one intends to apply this concept. Since tax regulations are strict regarding deadlines, it is recommended to assess each particular situation to ensure that the tax return strictly adheres to what is established in the LIRPF and the General Tax Law.