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Form 100. Personal Income Tax Declaration 2021

10.7.15. For acquisition or rehabilitation of the habitual residence in rural areas

This deduction will not be applicable to taxpayers who died before June 1, 2021.

Amount

15% of the amounts paid during the tax period for the acquisition or rehabilitation of the home that constitutes or will constitute your habitual residence.

Requirements

  1. That the home is located in one of the municipalities included in sparsely populated areas and that its population is less than 5,000 inhabitants.

    Sparsely populated areas (Decree 108/2021, of October 19, which determines the rural areas of Castilla-La Mancha, in accordance with the typology established in article 11 of the Law 2/2021 of May 7, on Economic, Social and Tax Measures against Depopulation and for the Development of the Rural Environment in Castilla-La Mancha).

  2. That the acquisition or rehabilitation of the home has occurred after January 1, 2021.

Deduction base

  • The amounts paid for the acquisition or rehabilitation of the home, including the expenses incurred that have been borne by the purchaser and, in the case of external financing, amortization, interest, the cost of the interest rate risk hedging instruments. variable interest on regulated mortgage loans, and other expenses derived from it. In the event of application of the aforementioned hedging instruments, the interest paid by the taxpayer will be reduced by the amounts obtained by the application of the aforementioned instrument.

  • The maximum total base of the deduction will be the lesser of: 180,000 euros or the amount of the acquisition or rehabilitation of the home that gives rise to the deduction less by the amounts received from the Community Board of Castilla-La Mancha as subsidies for the acquisition or rehabilitation of the home.

    In the case of homes acquired by several taxpayers, since the base of the deduction refers to the home, the amount of 180,000 euros must be distributed among the purchasers in proportion to their percentage of ownership.

    In turn, the maximum base to be applied in each year will be 12,000 euros. In joint taxation, the maximum base will be 12,000 euros in total, regardless of the number of members of the family unit that satisfy the amounts that give the right to apply the deduction.

  • When a habitual residence is acquired having already enjoyed this deduction, the maximum total base of the deduction will be reduced by the amounts invested in the acquisition of the previous homes, as long as said amounts had been subject to deduction.

  • When, on the occasion of the sale of a habitual residence for which this deduction has been made, an exempt capital gain is generated by reinvestment, the deduction base for the acquisition or rehabilitation of the new home will be reduced by the amount of the capital gain to to which the rollover exemption applies.

    In this case, no deduction may be made for the acquisition of the new one as long as the amounts invested in it do not exceed both the price of the previous one, to the extent that it has been subject to deduction, and the capital gain exempt from reinvestment.

In cases of marital annulment, divorce or judicial separation, the taxpayer may continue to make this deduction, in the terms provided in the state personal income tax regulations, for the amounts paid in the tax period for the acquisition of which was their habitual residence during the duration of the marriage, as long as it continues to have this condition for the common children and the parent in whose company they remain.

The application of this 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 period, at least by the amount of the investments made, without computing interest and other expenses. financing.

For these purposes, the increases or decreases in value experienced during the tax period by the assets that at the end of the period continue to form part of the taxpayer's assets will not be computed.

Concepts for deduction purposes

  • Primary residence: the building that constitutes your residence for a continuous period of at least three years. However, it will be understood that the home was considered habitual when, despite the said period not having elapsed, the death of the taxpayer occurs or other circumstances arise that necessarily require the change of address, such as celebration of marriage, marital separation. , job transfer, obtaining the first job, or change of job, or other justified analogues.

    For the home to constitute the taxpayer's habitual residence, it must be effectively and permanently inhabited by the taxpayer within a period of twelve months, counted from the date of acquisition or completion of the works.

    However, it will be understood that the home does not lose its habitual character when the death of the taxpayer occurs or other circumstances occur that necessarily prevent the occupation of the home, in the terms provided in the previous paragraph. When the exceptions provided for in the two previous paragraphs apply, the deduction for the acquisition of housing will be applied until the moment in which the circumstances arise that necessarily require the change of housing or prevent its occupation.

  • Acquisition of habitual residence : the acquisition in the legal sense of the right of ownership or full ownership of the same, even if this is shared, the legal transaction that originates it being indifferent. The construction or extension of the same is assimilated to the acquisition of housing, in the following terms:

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

    • Housing extension: 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.

    • Construction: 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 the final certificate of work is issued within a period of no more than four years from the start of the investment.

  • Rehabilitation of the habitual residence: those whose main purpose is the reconstruction of the home through the consolidation and treatment of the structures, facades or roofs and other similar ones, provided that the overall cost of the rehabilitation operations exceeds 25% of the acquisition price if this had been carried out. during the two years immediately prior to the start of the rehabilitation works or, otherwise, the market value of the home at the time of said start.

    For these purposes, the proportional part corresponding to the land will be deducted from the acquisition price or market value of the home.

Completion

It will indicate the amount paid with the right to deduction.