Mortgage installments may be deducted as long as the property is the primary residence

The transitional regime for the deduction for investment in the primary residence allows certain taxpayers to continue applying this tax benefit. A recent binding ruling from the Directorate General of Taxes (DGT) has clarified the scope of this right regarding payments made during the tax year.

What the DGT has ruled

The tax authority has determined that, under the transitional regime, it is possible to include in the deduction base the amounts paid for the acquisition of the property during the tax period. This criterion includes both amortization installments and interest paid, provided that the property retains its status as the taxpayer's primary residence.

However, the ruling is categorical on one key point: amounts paid once the status of primary residence is lost cannot be subject to deduction. For these amounts to be valid, the requirements established in Article 70 of the Personal Income Tax Law (LIRPF) must be strictly met.

What this means for you

If you acquired your home before the end date of the transitional regime, you maintain the right to apply the deduction for your mortgage installments. This implies that the tax benefit does not stop simply due to the passage of time, but is directly linked to the effective use of the property as your main residence.

The key lies in the continuity of the residency status. As long as the property is your habitual residence, you may continue to deduct the interest and the amortization of the mortgage debt accrued during the tax year.

What you should do

It is necessary to verify that all requirements of Article 70 of the LIRPF are met to avoid errors in your tax return. Since deductibility depends on maintaining primary residence, any change in tax domicile or in the use of the property will have an immediate impact on your ability to apply this benefit. It is recommended to assess the particular situation of each case to ensure that the amounts declared strictly correspond to the period in which the status of resident is held.