Doctrine by topic · DGT Observatory

Loan Substitution: DGT doctrinal evolution

How the DGT's position on this topic has evolved, and the rulings it rests on.

← DGT Observatory

How the DGT's position has evolved

Settled doctrine High confidence 50 rulings · 2020–2026

Current position

The substitution of a loan does not exhaust the right to deduction if the new loan is intended to amortize the previous one. To maintain the right, the cancellation of the original loan and the signing of the new contract must occur in a single act. Only the proportional part of the installments and expenses attributable to the loan intended for the dwelling is deductible, excluding any increase in the principal for other purposes.

The DGT's position remains constant at the core of the criterion, confirming that substitution does not extinguish the deduction. The evolution shows greater precision by explicitly including the deductibility of appraisal, notary, and registry expenses when the operation is carried out in a single act. The requirement of simultaneity is maintained to avoid the loss of the right.

Turning points

  1. V2054-22

    It is specified that if the cancellation and the signing of the new contract occur in a single act, the expenses generated by the operation are also deductible.

  2. V1323-23

    The necessity is established that the cancellation and the signing of the new contract must occur in a single act or simultaneously to maintain the right.

Analysis based on 46 of 50 rulings with a stated position. Updated 18 September 2026.

Rulings on this topic

24
V5325-26 28 Jul 2026

Right to deduction for home ownership investment maintained on loan replacement

SG de Impuestos sobre la Renta de las Personas Físicas
deducción por inversión en vivienda habitualrégimen transitorioamortización de préstamosustitución de préstamogastos de cancelación LIRPF — Ley 35/2006 del IRPF art. 68.1LIRPF — Ley 35/2006 del IRPF art. 70.1
Affects CompanyExpat · Non-residentIndividual
V5303-26 28 Jul 2026

Right to deduction for home ownership investment maintained on loan replacement

SG de Impuestos sobre la Renta de las Personas Físicas
deducción por inversión en vivienda habitualrégimen transitorioamortizaciónsustitución de préstamogastos de cancelación LIRPF — Ley 35/2006 del IRPF art. 68.1LIRPF — Ley 35/2006 del IRPF art. 70
Affects CompanyExpat · Non-residentIndividual
V1235-26 22 May 2026

Right to deduct home investment maintained after loan replacement

SG de Impuestos sobre la Renta de las Personas Físicas
deducción por inversión en vivienda habitualrégimen transitoriosustitución de préstamofinanciación ajenaamortización LIRPF — Ley 35/2006 del IRPF art. 68.1LIRPF — Ley 35/2006 del IRPF art. 70.1
Affects CompanyExpat · Non-residentIndividual
V0509-26 5 Mar 2026

Deduction for home investment can be maintained upon loan replacement

SG de Impuestos sobre la Renta de las Personas Físicas
deducción por inversión en vivienda habitualrégimen transitoriosustitución de préstamoamortizaciónbase de deducción LIRPF — Ley 35/2006 del IRPF art. 68.1.1ºLIRPF — Ley 35/2006 del IRPF art. 70
Affects CompanyExpat · Non-residentIndividual
V0469-26 27 Feb 2026

Only the portion of the new loan attributable to the original home loan is deductible

SG de Impuestos sobre la Renta de las Personas Físicas
deducción por inversión en vivienda habitualrégimen transitoriosustitución de préstamoampliación de principalamortización LIRPF — Ley 35/2006 del IRPF art. 68.1.1ºLIRPF — Ley 35/2006 del IRPF art. 70.1
Affects CompanyExpat · Non-residentIndividual
V1917-25 15 Oct 2025

Deduction for home ownership can be maintained upon loan replacement

SG de Impuestos sobre la Renta de las Personas Físicas
deducción por inversión en vivienda habitualrégimen transitorioamortizaciónsustitución de préstamofinanciación ajena LIRPF — Ley 35/2006 del IRPF art. 68.1.1ºLIRPF — Ley 35/2006 del IRPF art. 70
Affects CompanyExpat · Non-residentIndividual
V0521-25 28 Mar 2025

Right to deduction for home investment maintained on loan replacement

SG de Impuestos sobre la Renta de las Personas Físicas
deducción por inversión en vivienda habitualrégimen transitorioamortización de préstamoampliación de principalsustitución de préstamo LIRPF — Ley 35/2006 del IRPF art. 68.1.1ºLIRPF — Ley 35/2006 del IRPF art. 70.1
Affects CompanyExpat · Non-residentIndividual
V0727-24 16 Apr 2024

Right to tax deduction for main residence investment maintained if current mortgage is cancelled and a new one is taken out simultaneously

SG de Impuestos sobre la Renta de las Personas Físicas
deducción por inversión en vivienda habitualrégimen transitorioamortización de préstamosustitución de préstamocancelación registral hipotecaria LIRPF — Ley 35/2006 del IRPF art. 68.1.1ºLIRPF — Ley 35/2006 del IRPF art. 70.1
Affects CompanyExpat · Non-residentIndividual

Apply this to your case

Beckham Law & impatriate taxationTalk to the team applying this doctrine daily.
IRPF Spain 2026 CalculatorEstimate the impact on your case in two minutes.
Talk to the tax teamWe check whether this criterion affects you and what it means in your situation.
Email
Contact