Land buyers in 2025 will not be able to apply the deduction for investment in primary residence

The application of the deduction for investment in a primary residence under the transitional regime is subject to strict temporal limits that condition the possibility of reducing the tax burden in the construction or acquisition of a residence.

What the DGT has ruled

The Dirección General de Tributos (DGT) has clarified the possibility of applying this deduction when funds are used for the acquisition of land for the construction of a home. The criteria establish that, to benefit from the transitional regime, both the acquisition of the land and the payment of amounts for construction must have occurred before January 1, 2013.

In the specific case analyzed, since the acquisition of the land took place in the 2025 tax year, the administration determines that it is not possible to apply the deduction for investment in a primary residence. Current regulations require that the temporal milestone of the investment falls within the permitted period to maintain the right to the tax benefit.

What this means for you

If you are an individual acquiring land to build your future primary residence at current dates, you will not be able to count the cost of said land to obtain the deduction for investment in a primary residence. This tax benefit is reserved exclusively for those cases where the initial investment or the purchase of the land materialized before the entry into force of Law 16/2012, which modified the treatment of these deductions.

This ruling confirms that the temporal factor is decisive. It does not matter how the land is used or if construction begins later; what the regulations value is the date on which the acquisition or the disbursement of funds for the land was made.

What you should do

Since the application of this tax benefit depends on the date of the transaction, it is necessary to verify the chronology of all investments made in the home. In the case of land acquisitions made in recent years, it must be considered that the cost of the plot will not be deductible under this concept. It is recommended to assess the tax situation of each land purchase and sale operation to avoid errors in the Personal Income Tax (IRPF) return.