Main residence deduction: right to apply it in future tax years

The application of the deduction for investment in the main residence has raised doubts regarding the validity of rights acquired under the transitional regime. Recently, the Dirección General de Tributos (DGT) has clarified the situation of those taxpayers who, having met the requirements before the current regulations came into force, did not exercise this benefit at the time.

What the DGT has ruled

The inquiry analyzes whether a taxpayer can apply the transitional regime of the eighteenth Transitional Provision of the Personal Income Tax (IRPF) Law in upcoming years, such as the 2023 tax year, if the acquisition of the property and the fulfillment of the requirements occurred before 2013. The DGT has ruled that the right to the transitional regime is maintained if the conditions were met within the established period.

The criteria establish that the fact of not having applied the deduction in previous years does not prevent the exercise of this right in the future. For this to be possible, two fundamental conditions must be met:

• The taxpayer must be required to file an income tax return or decide to file it voluntarily.
• The property must maintain its status as the habitual residence.

What this means for you

This criterion has a direct impact on individuals who acquired their main residence before 2013. If you meet the requirements of the Transitional Provision of Law 35/2006 but did not apply the deduction in the years immediately following the purchase, you retain the possibility of claiming it in your current tax return.

The regulations allow for this right not to be lost simply through the passage of time, provided that the nature of the property as the primary residence is maintained and the obligation or willingness to file the tax return is met in accordance with the General Tax Law (Ley General Tributaria).

What you should do

It is necessary to verify whether the acquired property strictly meets the requirements of the 18th Transitional Provision of the IRPF Law. Since the application of this benefit depends on the particular situation of each taxpayer and the accreditation of habitual residence, it is recommended to assess each case individually to ensure that all conditions required by the Administration are met.