Doctrine by topic · DGT Observatory

Quota Share — evolution of DGT doctrine

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

Refined position High confidence 12 rulings · 2015–2026

Current position

The deduction for investment in the primary residence is applied to the proportional share of the borrowed capital that has been used to acquire the respective undivided interest in the property. In loans with a single debtor and creditor, each payment covers a quota share of each financed asset; therefore, the deductible amount is the proportion that the mortgage debt represents relative to the total outstanding loan. In cases of joint and several debtors, the excess paid by a co-owner over their ownership percentage is considered a loan or a gift in favor of the other.

The position of the DGT remains constant regarding the application of the quota share in loans with multiple financed assets. However, the doctrine has been refined to address the situation of joint and several debtors, strictly limiting the deduction to each individual's ownership percentage. The rulings of 2020 and 2021 introduce this limit regarding payments made in excess by a co-owner.

Turning points

  1. V3524-20

    Introduces the limitation in loans with joint and several borrowers, establishing that the excess paid over the ownership share is considered a loan or a gift and not a deductible expense.

Analysis based on 11 of 12 rulings with a stated position. Updated 27 September 2026.

Rulings on this topic

12
V5304-26 28 Jul 2026

Home ownership investment deduction limited to ownership percentage

SG de Impuestos sobre la Renta de las Personas Físicas
deducción por inversión en vivienda habitualrégimen transitoriotitularidadproindivisoparte alícuota LIRPF — Ley 35/2006 del IRPF art. 68.1.1LIRPF — Ley 35/2006 del IRPF art. disposición transitoria decimoctava
Affects CompanyExpat · Non-residentIndividual
V0707-23 23 Mar 2023

Loan repayments cannot be attributed exclusively to the main residence

SG de Impuestos sobre la Renta de las Personas Físicas
deducción por inversión en vivienda habitualamortización anticipadapréstamo hipotecariobase de deducciónrégimen transitorio LIRPF — Ley 35/2006 del IRPF art. 68.1.1ºLIRPF — Ley 35/2006 del IRPF art. 70.1
Affects CompanyExpat · Non-residentIndividual
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

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