Taxpayers who did not apply the main residence deduction before 2013 cannot use the transitional regime

Following the reform of the Personal Income Tax (IRPF) regulations introduced in 2013, many taxpayers have attempted to benefit from the transitional regime to maintain the deduction for investment in the main residence. However, the Dirección General de Tributos (DGT) has precisely delimited the requirements necessary to access this tax benefit.

What the DGT has ruled

The binding ruling analyzes whether it is possible to begin applying the deduction for investment in the main residence in the current tax period under the transitional regime. The administration's criteria establish that, to access the provisions of the Eighteenth Transitional Provision of the IRPF Law, it is an indispensable condition to have practiced the deduction for investment in the main residence in a tax period prior to January 1, 2013.

The resolution clarifies that the act of replacing a mortgage loan does not constitute an impediment to accessing the regime. Nevertheless, failure to meet the requirement of having applied the deduction in the years prior to the reform prevents its current application. The only exception occurs if the conditions of article 68.1.2º of the LIRPF, as drafted on December 31, 2012, are strictly met.

What this means for you

If you are an individual who acquired your home before 2013 but never applied the deduction for investment in the main residence in your previous tax returns, you will not be able to opt for the transitional regime to apply it now. This regime is not an option open to new beneficiaries, but rather a continuity for those who were already exercising that right before the measure was abolished.

What you should do

It is necessary to verify your tax return history to confirm whether this deduction has been exercised in years prior to 2013. Should there be any doubt regarding the application of the regulations in force at that time or the validity of a mortgage substitution, the specific situation should be assessed with a specialist to avoid errors in the tax settlement.