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Form 100. 2020 Personal Income Tax Return Declaration

10.8.2. For the acquisition of housing by young people in rural areas

15 percent of the amounts paid in the period in question for the acquisition or rehabilitation of the home that will constitute the taxpayer's habitual residence in the territory of the Community of Castilla y León. The deduction will also be applicable to cases of construction of a primary residence, when the taxpayer directly covers the costs arising from the execution of the works, or pays amounts on account to the developer, provided that they are completed within a period of no more than four years from the start of the investment.

The concept of housing rehabilitation for these purposes is that included in article 20.One.22.B of Law 37/1992, of December 28, on Value Added Tax. Building rehabilitation works are those that meet the following requirements: 

  • That its main objective is the reconstruction of the same, understanding that this requirement is met when more than 50 percent of the total cost of the rehabilitation project corresponds to works of consolidation or treatment of structural elements, facades or roofs or with works similar or related to rehabilitation.
  • That the total cost of the works referred to in the project exceeds 25 percent of the purchase price of the building if it had been carried out during the two years immediately prior to the start of the rehabilitation works or, otherwise, of the market value of the building or part thereof at the time of said start. For these purposes, the proportional part corresponding to the land will be deducted from the purchase price or market value of the building.

Requirements

  • That the taxpayer has his habitual residence in the Community of Castilla y León and that on the date of accrual of the tax he is under 36 years of age.

  • That it is your first home. The taxpayer is considered to have acquired his or her first home when he or she does not have or has not had any right of full ownership equal to or greater than 50% over another home.

  • That the home is located in a town (municipality) of the Community of Castilla y León, excluding those with more than 10,000 inhabitants, or those with more than 3,000 inhabitants and less than 30 kilometers from the provincial capital.

    This requirement must be met at the time of acquisition or rehabilitation of the home, in the case of construction, it must be met at the time when the first payment of the expenses derived from the execution of the works is made or, where appropriate, the first payment of amounts on account to the developer of the home.

  • That the property has a value, for the purposes of the tax levied on its acquisition, of less than 135,000.00 euros for purchases made after January 1, 2016.

  • Whether it is a newly built home or a renovation classified as a protectable action in accordance with the corresponding state or regional housing plans. A newly built home is considered to be one whose acquisition represents the first transfer of the same after the declaration of new construction, provided that three years have not passed since this. Likewise, housing is considered to be newly built when the taxpayer directly covers the expenses derived from the execution of the works.

  • That the acquisition or rehabilitation of the home takes place after January 1, 2005.

  • That the total taxable base, less the personal and family minimum, does not exceed 18,900 euros if taxation is individual or 31,500 euros if taxation is joint. This requirement will be controlled by the program.

  • The application of the deduction will require that the verified amount of the taxpayer's assets at the end of the tax period exceeds the value shown by its verification at the beginning of the same by at least the amount of the investments made, in accordance with the requirements established in general terms in the regulations on Personal Income Tax.

Maximum deduction base

The maximum base for this deduction will be 9,040 euros per year, and will consist of the amounts paid for the acquisition or renovation of the home, including the expenses incurred by the purchaser and, in the case of external financing, the amortization, the interest, the cost of the instruments to cover the variable interest rate risk of mortgage loans regulated in article nineteen of Law 36/2003, of November 11, on Economic Reform Measures, and other expenses derived therefrom. In the event of application of the aforementioned hedging instruments, the interest paid by the taxpayer will be reduced by the amounts obtained by application of the aforementioned instrument.

Loss of the right to deduction

When, in tax periods after the period of application, the right to the deductions made is lost, in whole or in part, the taxpayer will be obliged to add to the autonomous net tax rate accrued in the year in which the requirements were not met, the amounts unduly deducted, plus the late payment interest referred to in article 26.6 of Law 58/2003, of December 17, General Tax Law.

Completion

The window will reflect the amounts paid with the right to the deduction.

In the case of marriage when the amount paid corresponds to the spouses in equal parts, 50% of the total amounts paid by both will be reflected.

List of populations excluded from the application of the deduction

  1. 10.8.2.1. Towns with more than 10,000 inhabitants, or with more than 3,000 inhabitants, located less than 30 km from the provincial capital