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Form 100. 2020 Personal Income Tax Return Declaration

9.1.2. Construction or extension of habitual residence

The construction or extension of the same is assimilated to the acquisition of housing, in the following terms:

  1. The construction of the habitual residence, when the taxpayer directly pays the expenses derived from the execution of the works, or delivers amounts on account to the promoter of the works, provided that they are completed within a period of no more than four years from the start of the investment. The deduction will only be applicable when the taxpayer had paid amounts prior to January 1, 2013.

  2. The extension of a habitual residence, when the increase in its habitable surface occurs, by enclosing an open part or by any other means, permanently and during all times of the year. The deduction will only be applicable when amounts for this concept have been paid prior to January 1, 2013, provided that, in addition, the works are completed before January 1, 2017. If this deadline is not met, the deductions made for this concept must be regularized.

The percentage of deduction applicable to the deduction base will in any case be 7.50 per 100 in the state part, and 7.50 per 100 in the regional part, that is, 15 per 100 .

The Autonomous Community of Catalonia has established in certain cases specific percentages for the autonomous section of the deduction.

Extension of the deadline due to exceptional circumstances

  • Contest

    If, as a result of the competition, the developer does not complete the construction works before the four-year period has elapsed or is unable to deliver the homes within the same period, this period will be extended by another four years.

    In these cases, the period of twelve months to effectively and permanently inhabit the home will begin to count from the delivery.

    For the extension provided for in this section to take effect, the taxpayer who is obliged to submit a tax return, in the tax period in which the initial deadline was missed, must accompany it with both the supporting documents that prove their investments in housing as any document justifying the occurrence of any of the aforementioned situations.

    In these cases, the taxpayer will not be obliged to make any income due to non-compliance with the general four-year deadline for completing the construction works.

  • Other exceptional circumstances 

    When, due to other exceptional circumstances not attributable to the taxpayer and that result in the cessation of the works, they cannot be completed before the four-year period to complete the construction has elapsed, the taxpayer may request an extension of the period from the Administration.

    The request must be submitted to the Delegation or Administration of the State Tax Administration Agency corresponding to your tax domicile within thirty days following failure to comply with the deadline.

    The request must include both the reasons that caused the failure to comply with the deadline and the period of time considered necessary to complete the construction works, which may not exceed four years.

    For the purposes indicated in the previous paragraph, the taxpayer must provide the corresponding justification.

    In view of the documentation provided, the Delegate or Administrator of the State Tax Administration Agency will decide both on the origin of the requested extension and with respect to the extension period, which will not necessarily have to adjust to that requested by the taxpayer.

    Extension requests that are not expressly resolved within a period of three months may be deemed to be rejected.

    The extension granted will begin to be counted from the day immediately following the day on which the non-compliance occurs.