Owners of homes acquired before 2013 may apply the investment deduction

The possibility of applying the deduction for investment in the primary residence for properties acquired before the entry into force of Law 16/2012 has been recently clarified by the Tax Administration. The focus of the matter lies with those taxpayers who, having made the investment in previous periods, did not exercise this right because they were not obligated to file an income tax return.

What the DGT has resolved

The Dirección General de Tributos (DGT) has determined that taxpayers who acquired their primary residence before 2013 can apply the deduction through the transitional regime. This is applicable even if, in the tax years in which the investment was made, the individual was not required to file a Personal Income Tax (IRPF) return.

The criteria establish that the deduction applies to the amounts paid for acquisition or rehabilitation, which includes both the amortization and the interest of the linked loans. Likewise, it is clarified that loan novations or substitutions do not exhaust the right to the deduction, provided that the new loan is specifically intended to amortize the previous one. However, any part of the annuities that corresponds to an increase in the principal intended for other purposes unrelated to the housing is excluded from the deduction.

What this means for you

If you are the owner of a home acquired before 2013 and were unable to benefit from this deduction at the time, you have the possibility of requesting the rectification of the self-assessments for non-prescribed tax years. This allows you to recover part of the investment made in the property, integrating both the capital and the associated financial costs.

This scenario is especially relevant for individuals who have moved from a situation of not being required to file a tax return to a situation where filing is mandatory, or who simply were unaware of the application of this transitional regime for their previous investments.

What should be done

It is necessary to perform a detailed analysis of the payments made for the acquisition or rehabilitation of the home and the composition of the mortgage loan installments. It must be verified that any debt novation maintains its exclusive purpose of amortizing the original loan so as not to lose the right to the deduction on the corresponding part.

Each situation presents technical particularities regarding prescription periods and the documentation necessary to prove the investment; therefore, it is recommended to assess each case individually.