Taxpayers with homes acquired before 2013 may only apply the deduction if they did not claim it due to having no tax liability

The possibility of applying the deduction for investment in a primary residence following the 2013 tax reform has raised doubts about who maintains this right under the transitional regime. The Dirección General de Tributos (DGT) has specified the circumstances in which a taxpayer may begin to apply this deduction in the current fiscal year.

What the DGT has resolved

The regulations establish that, to benefit from this transitional regime, the taxpayer must have acquired the home before the entry into force of Law 16/2012 and must have applied the deduction for the amounts paid in a period prior to that date.

Following the criteria of the Tribunal Económico-Administrativo Central (TEAC), the DGT clarifies that only those taxpayers who did not record this deduction before 2013 for specific reasons may apply it, such as:

• Not being required to file a Personal Income Tax (IRPF) return.
• Not having a full tax liability to determine in previous fiscal years.

Conversely, the administration establishes that those who were required to file and had a full tax liability, but did not apply the deduction at the time, will not be able to do so.

What this means for you

If you acquired your primary residence before 2013, your right to the deduction is neither automatic nor unlimited. Access to this benefit depends on your tax situation prior to the repeal of the incentive. If in previous years you were already required to file and had a full tax liability, but omitted the deduction, you will not be able to begin applying it now under the transitional regime.

What you should do

It is necessary to verify the tax situation of the fiscal years prior to 2013 to confirm whether the requirements of no obligation to file or the absence of a full tax liability are met. Each situation must be analyzed individually to determine whether the right to the transitional regime remains valid or if it has been lost due to the failure to exercise the deduction when it was appropriate.