Doctrine by topic · DGT Observatory

Undivided Share: 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 21 rulings · 2015–2022

Current position

The deduction for investment in the primary residence applies only to the proportional part that each borrower has allocated to the acquisition of their respective undivided share of ownership. If a co-owner pays installments exceeding their ownership percentage, the excess is considered a loan or a gift to the other co-owner. In divorce cases, the imputation of real estate income for the undivided share is not applicable if the use of the dwelling has been attributed to the former spouse through a judicial settlement agreement.

The DGT's position remains stable regarding the limitation of the deduction for investment in housing to the proportional part of the undivided ownership. Throughout the rulings, it has been specified that payments exceeding the ownership share do not generate a right to deduction, but are instead classified as loans or gifts. The doctrine confirms that ownership of the undivided share is determined at the time of the contribution or acquisition.

Turning points

  1. V2742-21

    Specifies that the deduction is limited to the proportional part of the capital allocated to the undivided share of ownership, classifying the excess paid as a loan or a gift.

Analysis based on 19 of 21 rulings with a stated position. Updated 25 September 2026.

Rulings on this topic

21
V2742-21 10 Nov 2021

Full mortgage deduction unavailable if only 50% ownership of property is held

SG de Impuestos sobre la Renta de las Personas Físicas
deducción por inversión en vivienda habitualmitad indivisaprestatario solidariorégimen transitorioparte alícuota LIRPF — Ley 35/2006 del IRPF art. 67.1LIRPF — Ley 35/2006 del IRPF art. 68.1
Affects CompanyExpat · Non-residentIndividual
V3524-20 10 Dec 2020

Full mortgage deduction unavailable if paying the co-owner's share

SG de Impuestos sobre la Renta de las Personas Físicas
deducción por inversión en vivienda habitualprestatario solidariomitad indivisarégimen transitorioparte alícuota LIRPF — Ley 35/2006 del IRPF art. 67.1LIRPF — Ley 35/2006 del IRPF art. 68.1
Affects CompanyExpat · Non-residentIndividual
V2670-17 19 Oct 2017

Properties leased to a company are not exempt from Wealth Tax

SG de Impuestos Patrimoniales, Tasas y Precios Públicos
exenciónmitad indivisaactividad económicavaloraciónvalor catastral LIP — Ley 19/1991 del Impuesto sobre el Patrimonio art. 4-Ocho-DosLIP — Ley 19/1991 del Impuesto sobre el Patrimonio art. 10
Affects CompanyExpat · Non-residentIndividual
V3486-15 12 Nov 2015

Transfer of an autonomous economic unit is not subject to VAT

SG de Impuestos sobre el Consumo
unidad económica autónomano sujeciónrecargo de equivalenciatransmisión de patrimoniomera cesión de bienes LIVA — Ley 37/1992 del IVA art. 4LIVA — Ley 37/1992 del IVA art. 7.1
Affects CompanyExpat · Non-residentIndividual
V3069-15 14 Oct 2015

Legal costs from property auction purchases are not tax deductible

SG de Impuestos sobre la Renta de las Personas Físicas
deducción por inversión en vivienda habitualmitad indivisaadjudicación en subastarégimen transitoriogastos de adquisición LIRPF — Ley 35/2006 del IRPF art. 68.1LIRPF — Ley 35/2006 del IRPF art. 70
Affects CompanyExpat · Non-residentIndividual
V3068-15 14 Oct 2015

Tax relief for main residence investment limited to the taxpayer's undivided share

SG de Impuestos sobre la Renta de las Personas Físicas
deducción por inversión en vivienda habitualmitad indivisarégimen transitoriovivienda habitualproporción de propiedad LIRPF — Ley 35/2006 del IRPF art. 68.1.1ºLIRPF — Ley 35/2006 del IRPF art. 68.1.2º
Affects CompanyExpat · Non-residentIndividual

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