Doctrine by topic · DGT Observatory

Mortgage Cancellation: 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 11 rulings · 2022–2026

Current position

The novation, subrogation, or substitution of a loan does not exhaust the right to deduction if the new loan is used to amortize the previous one. If the cancellation and the new signing occur in a single act, the expenses and installments are deductible. However, the portion of the annuities used to finance concepts other than the dwelling will not be deductible.

The DGT's position remains constant across all analyzed rulings. The criterion establishes that the continuity of the deduction depends on the allocation of the new loan to the amortization of the previous one and the simultaneity of the cancellation and new contracting acts.

Turning points

  1. V1235-26

    Clarifies that in successive and linked substitutions, such as the use of family financing to release the registry burden, there is continuity in the investment.

Analysis based on 11 of 11 rulings with a stated position. Updated 27 September 2026.

Rulings on this topic

11
V1235-26 22 May 2026

Right to deduct home investment maintained after loan replacement

SG de Impuestos sobre la Renta de las Personas Físicas
deducción por inversión en vivienda habitualrégimen transitoriosustitución de préstamofinanciación ajenaamortización LIRPF — Ley 35/2006 del IRPF art. 68.1LIRPF — Ley 35/2006 del IRPF art. 70
Affects CompanyExpat · Non-residentIndividual

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