Doctrine by topic · DGT Observatory

Mortgage Novation: 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 34 rulings · 2014–2026

Current position

The novation or substitution of a mortgage loan does not exhaust the right to the deduction for investment in the primary residence. The installments of the new loan allow for the deduction in the proportional part attributable to the amortization of the original loan intended for the housing. If there is an increase in the principal, only the part intended to cover the cancellation costs of the previous loan shall be deductible.

The DGT's position has moved from focusing on the AJD (Stamp Duty) exemption for changes in interest rates or terms, to consolidating the continuity of the right to the deduction for investment in the primary residence. The rulings confirm that novation does not interrupt the financing process nor exhaust the possibility of applying the deduction, provided that the purpose of the funds is maintained.

Turning points

  1. V0340-17

    Specifies that the AJD exemption for changes in interest rates does not extend by analogy to changes in the amortization system.

  2. V2093-20

    Establishes that the novation or substitution of a loan does not exhaust the right to the deduction if the new loan is intended for the amortization of the original loan.

Analysis based on 31 of 34 rulings with a stated position. Updated 23 September 2026.

Rulings on this topic

24
V1337-26 1 Jun 2026

Deduction for home investment applicable for purchases before 2013

SG de Impuestos sobre la Renta de las Personas Físicas
deducción por inversión en vivienda habitualrégimen transitorionovación hipotecariacuota íntegraperiodo impositivo LIRPF — Ley 35/2006 del IRPF art. 68.1LIRPF — Ley 35/2006 del IRPF art. 70.1
Affects CompanyExpat · Non-residentIndividual
V1929-22 12 Sept 2022

Right to tax deduction for main residence maintained when replacing a mortgage loan

SG de Impuestos sobre la Renta de las Personas Físicas
deducción por inversión en vivienda habitualrégimen transitoriosustitución de préstamoamortización de principalnovación hipotecaria LIRPF — Ley 35/2006 del IRPF art. 68.1.1ºLIRPF — Ley 35/2006 del IRPF art. 70.1
Affects CompanyExpat · Non-residentIndividual
V2822-21 16 Nov 2021

Release of mortgage debtor and dissolution of co-ownership subject to Stamp Duty

SG de Impuestos Patrimoniales, Tasas y Precios Públicos
liberación de deudorextinción de condominionovación hipotecariaexceso de adjudicaciónactos jurídicos documentados TRITPAJD — RDLeg 1/1993 de ITP y AJD art. 2TRITPAJD — RDLeg 1/1993 de ITP y AJD art. 4
Affects CompanyExpat · Non-residentIndividual
V3286-18 28 Dec 2018

Tax relief for main residence may be maintained when replacing a mortgage loan

SG de Impuestos sobre la Renta de las Personas Físicas
deducción por inversión en vivienda habitualrégimen transitorioamortización de préstamonovación hipotecariasubrogación LIRPF — Ley 35/2006 del IRPF art. 68.1.1ºLIRPF — Ley 35/2006 del IRPF art. 70
Affects CompanyExpat · Non-residentIndividual
V3285-18 28 Dec 2018

Tax relief for main residence may be maintained when replacing a mortgage loan

SG de Impuestos sobre la Renta de las Personas Físicas
deducción por inversión en vivienda habitualrégimen transitorioamortización de préstamonovación hipotecariafinanciación ajena LIRPF — Ley 35/2006 del IRPF art. 68.1.1ºLIRPF — Ley 35/2006 del IRPF art. 70
Affects CompanyExpat · Non-residentIndividual
V3104-18 29 Nov 2018

Tax relief for main residence may be maintained when replacing a mortgage loan

SG de Impuestos sobre la Renta de las Personas Físicas
deducción por inversión en vivienda habitualrégimen transitorioamortización de préstamonovación hipotecariafinanciación ajena LIRPF — Ley 35/2006 del IRPF art. 68.1.1ºLIRPF — Ley 35/2006 del IRPF art. 70
Affects CompanyExpat · Non-residentIndividual
V1380-18 25 May 2018

Mortgage loan novation to change interest rate is exempt from Stamp Duty

SG de Impuestos Patrimoniales, Tasas y Precios Públicos
novación hipotecariaactos jurídicos documentadoscontenido valuableexención fiscaltipo de interés TRITPAJD — RDLeg 1/1993 de ITP y AJD art. 31.2TRITPAJD — RDLeg 1/1993 de ITP y AJD art. 45.I.C.24
Affects CompanyExpat · Non-residentIndividual
V2131-17 17 Aug 2017

Tax relief for main residence may be maintained when replacing a mortgage loan

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

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