Impossibility of deducting primary residence investment after 2013

The Dirección General de Tributos (DGT) has issued a relevant ruling regarding the applicability of the deduction for investment in a primary residence in Personal Income Tax (IRPF). The inquiry focused on determining whether the use of a family loan, intended for the acquisition of a new home, allowed access to this tax benefit.

What the DGT has resolved

The advisory body has determined that there is no right to the deduction for investment in a primary residence in the cases presented. The basis for this decision lies in the fact that the deduction was abolished by Law 16/2012, effective from January 1, 2013.

The regulations establish a transitional regime through the eighteenth transitional provision of the IRPF Law. This regime only allows those taxpayers who acquired their home prior to the date the reform entered into force to continue applying the deduction. Since this is an acquisition after 2013, current regulations prevent the exercise of this tax right, regardless of the source of the funds or the nature of the loan used.

What it means for you

This ruling has a direct impact on individuals purchasing their primary residence today. If you acquire a property after 2013, you will not be able to count acquisition costs or loan amortization to reduce your IRPF taxable base through this specific deduction.

It is important to understand that the suppression of this incentive is absolute for new acquisitions. The fact that the financing comes from a family loan or that specific funds are allocated to the purchase does not alter the acquisition date, which is the determining factor for the application of the transitional rule.

What you should do

Given the non-existence of this deduction for recent purchases, it is necessary to carry out tax planning based on current regulations. It is recommended to:

• Verify the exact date of the purchase deed to confirm the application of current regulations.
• Analyze other possible deductions or tax benefits applicable to each taxpayer's particular situation.
• Evaluate each case individually to optimize the tax burden within the permitted legal framework.