Doctrine by topic · DGT Observatory

Principal Increase: DGT doctrinal evolution

How the DGT's position on this topic has evolved, and the rulings it rests on.

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How the DGT's position has evolved

Settled doctrine High confidence 14 rulings · 2020–2026

Current position

The novation, subrogation, or substitution of a loan does not exhaust the right to the deduction for investment in a primary residence if the new loan is used to amortize the previous one. The installments of the new loan are deductible in the proportional part attributable to the amortization of the original loan. In the case of an increase in principal, only the part intended to cover the cancellation costs of the original loan shall be deductible.

The DGT's position has remained constant since 2020. The criterion establishes that an increase in principal only allows for the deduction of the portion intended to cover the cancellation costs of the previous loan. No changes are observed in the interpretation of the deductibility of proportional installments.

Analysis based on 9 of 14 rulings with a stated position. Updated 26 September 2026.

Rulings on this topic

14
V0469-26 27 Feb 2026

Only the portion of the new loan attributable to the original home loan is deductible

SG de Impuestos sobre la Renta de las Personas Físicas
deducción por inversión en vivienda habitualrégimen transitoriosustitución de préstamoampliación de principalamortización LIRPF — Ley 35/2006 del IRPF art. 68.1.1ºLIRPF — Ley 35/2006 del IRPF art. 70.1
Affects CompanyExpat · Non-residentIndividual
V0521-25 28 Mar 2025

Right to deduction for home investment maintained on loan replacement

SG de Impuestos sobre la Renta de las Personas Físicas
deducción por inversión en vivienda habitualrégimen transitorioamortización de préstamoampliación de principalsustitución de préstamo LIRPF — Ley 35/2006 del IRPF art. 68.1.1ºLIRPF — Ley 35/2006 del IRPF art. 70.1
Affects CompanyExpat · Non-residentIndividual

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