Doctrine by topic · DGT Observatory

Borrower: 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 · 2014–2021

Current position

The deduction for investment in primary residence applies to the amounts paid linked to the undivided share that the taxpayer owns of the property. The novation of a loan to become the sole borrower does not constitute the acquisition of a new undivided share, and therefore does not allow for an increase in the deduction percentage. In loans with multiple borrowers, installments are considered to be paid in equal parts unless proven otherwise.

The DGT's position remains constant regarding the limitation of the deduction for investment in primary residence, strictly linking it to the ownership of the undivided share. No change in criterion is observed, but rather a reiteration that the modification of the status of borrower through novation does not alter the right to the deduction on the part of the property already owned.

Turning points

  1. V2802-21

    Confirms that novation to become the sole borrower does not imply the acquisition of a new undivided share, preventing an increase in the deduction percentage.

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

Rulings on this topic

11
V2802-21 15 Nov 2021

Main residence tax deduction cannot be increased following mortgage novation

SG de Impuestos sobre la Renta de las Personas Físicas
deducción por inversión en vivienda habitualnovación de préstamoparte indivisarégimen transitorioprestatario LIRPF — Ley 35/2006 del IRPF art. 68.1.1ºLIRPF — Ley 35/2006 del IRPF art. 70
Affects CompanyExpat · Non-residentIndividual
V3457-20 30 Nov 2020

Family loans are exempt from ITPAJD but require tax returns to be filed

SG de Impuestos Patrimoniales, Tasas y Precios Públicos
transmisiones patrimonialesactos jurídicos documentadosexenciónobligación de declararpunto de conexión TRITPAJD — RDLeg 1/1993 de ITP y AJD art. 7.1.BTRITPAJD — RDLeg 1/1993 de ITP y AJD art. 7.5
Affects CompanyExpat · Non-residentIndividual
V2846-20 22 Sept 2020

No obligation to withhold IRPF on interest paid by employee to company

SG de Impuestos sobre la Renta de las Personas Físicas
rendimientos del capital mobiliarioretención a cuentaobligación de retenerintereses del préstamoprestatario LIRPF — Ley 35/2006 del IRPF art. 99Reglamento del Impuesto
Affects CompanyExpat · Non-residentIndividual
V1758-18 18 Jun 2018

Mortgage loan novation does not affect tax relief for main residence investment

SG de Impuestos sobre la Renta de las Personas Físicas
deducción por inversión en vivienda habitualnovaciónprestatariotitularidadpleno dominio LIRPF — Ley 35/2006 del IRPF art. disposición transitoria decimoctavaLGT — Ley 58/2003 General Tributaria art. 106.1
Affects CompanyExpat · Non-residentIndividual
V2487-17 4 Oct 2017

Loans between individuals are exempt from ITPAJD but require a tax return

SG de Impuestos Patrimoniales, Tasas y Precios Públicos
transmisiones patrimonialesactos jurídicos documentadosexenciónsujeto pasivoconstitución de préstamo TRITPAJD — RDLeg 1/1993 de ITP y AJD art. 7.1.BTRITPAJD — RDLeg 1/1993 de ITP y AJD art. 8.d
Affects CompanyExpat · Non-residentIndividual
V2484-17 4 Oct 2017

Loans between individuals are exempt from ITPAJD but require a tax return

SG de Impuestos Patrimoniales, Tasas y Precios Públicos
transmisiones patrimonialesactos jurídicos documentadosexención fiscalsujeto pasivoprestatario TRITPAJD — RDLeg 1/1993 de ITP y AJD art. 7.1.B)TRITPAJD — RDLeg 1/1993 de ITP y AJD art. 45.I.B).15
Affects CompanyExpat · Non-residentIndividual
V2159-14 5 Aug 2014

Spouses may each claim the main residence tax deduction on half of a family loan

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

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