Taxpayers may deduct housing payments in 2025 if they maintain their habitual residence

The right to a deduction for investment in a habitual residence under the transitional regime of Personal Income Tax (IRPF) raises doubts when a taxpayer's residency status changes during the fiscal year. The Dirección General de Tributos (DGT) has clarified the limits of this tax benefit in a recent binding ruling.

What the DGT has resolved

The tax authority has confirmed that, under the transitional regime of the IRPF Law, amounts paid during the 2025 fiscal year for the acquisition of the home are deductible. This includes both ordinary payments and the early repayment of the associated mortgage loan.

However, the resolution establishes an essential condition: the property must maintain its status as the taxpayer's habitual residence. The moment the individual loses this status, the amounts paid will no longer be deductible. Likewise, it must be verified that the net worth at the end of the tax period is higher than at the beginning by the amount of the investments made, in accordance with current regulations.

What this means for you

If you are covered by the transitional regime for the habitual residence deduction, the treatment of your 2025 payments will depend strictly on your residency status. If you make payments or amortizations, you may apply them to your tax return as long as the property remains your primary residence.

If for any reason you cease to reside in said property during the year, the right to the deduction ceases regarding payments made after the loss of that status. It is fundamental to monitor this change of residence, as it directly affects the calculation of the taxable base.

What you should do

It is necessary to maintain precise tracking of payments made during the year and your actual residency status. To ensure compliance with regulations, you must verify that the increase in net worth at the close of the fiscal year is consistent with the investments made. Since the application of this regime depends on personal circumstances and the regulations of Law 35/2006, it is necessary to assess each particular situation to determine the exact tax impact.