Doctrine by topic · DGT Observatory

Mortgage Subrogation: 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 45 rulings · 2014–2024

Current position

The novation, subrogation, or substitution of a loan does not conclude the financing process nor exhaust the possibility of claiming the deduction. The installments of the new loan (amortization and interest) entitle the taxpayer to a deduction in the proportional part attributable to the original loan intended for the dwelling. 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 remained constant since 2019, confirming that the substitution of loans is a modification of the financing conditions and not the end of the process. Since 2020, the criterion has been refined to exclude from the deduction the part of the installments corresponding to the increase in principal due to expansion, limiting it solely to the coverage of cancellation costs.

Turning points

  1. V1544-20

    Introduces the limitation of the deduction in the event of an expansion, stating that the proportional part of the annual installments corresponding to the increase in principal shall not be subject to deduction.

Analysis based on 43 of 45 rulings with a stated position. Updated 23 September 2026.

Rulings on this topic

24
V2219-20 30 Jun 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 principalintereses hipotecariosrégimen transitorio LIRPF — Ley 35/2006 del IRPF art. 68.1LIRPF — Ley 35/2006 del IRPF art. 70
Affects CompanyExpat · Non-residentIndividual
V1658-20 28 May 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. 68.1.1ºLIRPF — Ley 35/2006 del IRPF art. 70
Affects CompanyExpat · Non-residentIndividual
V1596-20 26 May 2020

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 habitualsubrogación hipotecariaamortización de principalintereses hipotecariosrégimen transitorio LIRPF — Ley 35/2006 del IRPF art. 68.1.1ºLIRPF — Ley 35/2006 del IRPF art. 70
Affects CompanyExpat · Non-residentIndividual
V1595-20 26 May 2020

Tax relief 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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