Doctrine by topic · DGT Observatory

Cancellation Expenses: 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 · 2020–2026

Current position

The replacement of a loan does not exhaust the right to deduction if the new credit is used to amortize the previous one. If the cancellation and the signing of the new contract occur in a single act, the installments, interest, and cancellation expenses are deductible. Likewise, the appraisal, notary, and registry expenses derived from the new operation are also deductible. The portion of the new principal intended for purposes other than the acquisition of the dwelling is not deductible.

The DGT's position remains constant at the core of the criterion: novation or replacement does not extinguish the right to deduction. Throughout the rulings, it has been specified that simultaneity in the act of cancellation and signing is key to the deductibility of expenses. The most recent rulings expand deductibility to explicitly include the appraisal, notary, and registry expenses of the new operation.

Turning points

  1. V5303-26

    It is explicitly established that the appraisal, notary, and registry expenses of the new operation are also deductible.

Analysis based on 10 of 11 rulings with a stated position. Updated 27 September 2026.

Rulings on this topic

11
V5325-26 28 Jul 2026

Right to deduction for home ownership investment maintained on loan replacement

SG de Impuestos sobre la Renta de las Personas Físicas
deducción por inversión en vivienda habitualrégimen transitorioamortización de préstamosustitución de préstamogastos de cancelación LIRPF — Ley 35/2006 del IRPF art. 68.1LIRPF — Ley 35/2006 del IRPF art. 70.1
Affects CompanyExpat · Non-residentIndividual
V5303-26 28 Jul 2026

Right to deduction for home ownership investment maintained on loan replacement

SG de Impuestos sobre la Renta de las Personas Físicas
deducción por inversión en vivienda habitualrégimen transitorioamortizaciónsustitución de préstamogastos de cancelación LIRPF — Ley 35/2006 del IRPF art. 68.1LIRPF — Ley 35/2006 del IRPF art. 70
Affects CompanyExpat · Non-residentIndividual
V2837-23 19 Oct 2023

The right to the deduction for investment in primary residence is maintained if the current loan is cancelled and a new one is contracted simultaneously

SG de Impuestos sobre la Renta de las Personas Físicas
deducción por inversión en vivienda habitualrégimen transitorioamortización de préstamosustitución de préstamogastos de cancelación LIRPF — Ley 35/2006 del IRPF art. 68.1.1ºLIRPF — Ley 35/2006 del IRPF art. 70.1
Affects CompanyExpat · Non-residentIndividual
V0889-20 16 Apr 2020

Deduction for main residence can be maintained when replacing a mortgage loan

SG de Impuestos sobre la Renta de las Personas Físicas
deducción por inversión en vivienda habitualsubrogación hipotecariaamortización de principalrégimen transitoriofinanciación ajena LIRPF — Ley 35/2006 del IRPF art. 68.1LIRPF — Ley 35/2006 del IRPF art. 70
Affects CompanyExpat · Non-residentIndividual

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