9.1.1. Acquisition, rehabilitation and expansion of the habitual residence

Taxpayers who meet the following requirements will be entitled to apply the deduction for investment in primary residence for the amounts paid in the fiscal year:

Those who have legally acquired their habitual residence prior to January 1, 2013.
In the case of renovation works on the habitual residence, amounts have been paid for this concept prior to 1 January 2013, provided that the works are also completed before 1 January 2017.
In the case of extensions to habitual residences, amounts have been paid for this purpose prior to 1 January 2013, provided that, in addition, the works are completed before 1 January 2017.

In addition, the taxpayer must have applied the deduction for said home in 2012 or in previous years, unless he or she has not been able to apply it yet because the amount invested in it has not exceeded the amounts invested in previous homes, to the extent that they have been subject to deduction and, where applicable, the amount of exempt capital gains through reinvestment.

In the event of annulment of marriage, divorce or legal separation, the taxpayer may continue to claim the deduction for the amounts paid in the tax period for the acquisition of what was his or her habitual residence during the marriage, provided that this condition continues to apply to the common children and the parent in whose company they remain.

The deduction may also be made for the amounts paid, where applicable, for the acquisition of the home that constitutes or will constitute your habitual residence, in this case the deduction base will be joint for the two homes (9,040 euros per year).
If, pursuant to the divorce court ruling, the taxpayer makes full payments on the loan for the purchase of the habitual residence that was granted jointly to both spouses and for the amortization of which both spouses were applying the deduction for the purchase of a habitual residence before 1 January 2013, he or she will be entitled to apply the deduction for the full amount paid for this purpose even if he or she only owns 50% of the residence because the joint property has not been settled, both in the event that the residence continues to have the status of habitual residence for him or her and the common children and in the event that the residence has this status for the common children and the other parent.
In the event of the termination of a joint ownership interest in the habitual residence as of 1 January 2013, if one of the parties obtains 100% of the residence, he/she will be entitled to apply 100% of the deduction for the acquisition of a habitual residence up to a total of 9,040 euros as a base, provided that said deduction had been applied in a fiscal year prior to 2013 in the percentage corresponding to his/her participation in the joint ownership interest, limited to the amount that the joint owner who ceases to be the owner of the property would have been entitled to deduct from the date of termination of the joint ownership interest if said termination had not taken place.

The deduction will also be conditional on the fact that the co-owner who ceases to be the owner has not exhausted the possibility of continuing to practice the deduction by the date of termination of the condominium.

Deduction percentages

The deduction percentage applicable to the deduction base will in all cases be 7.50% in the national section, and the percentage established in the respective Autonomous Community and, failing that, 7.50% in the regional section.

These percentages apply both to the amounts paid in the financial year to repay the loan requested, and to the amount paid, where applicable, in cash by the buyer.

The Autonomous Community of Catalonia has established special percentages for the autonomous section of the deduction.

Maximum deduction base

The maximum base will be 9,040 euros per year.

This base will be the same for all amounts invested in habitual housing, with the exception of those destined for works and installations to adapt habitual housing due to disability, for which there is an independent deduction base, both deductions being compatible with each other.

Amounts eligible for deduction

The amounts paid for the acquisition or renovation of the home, including the expenses incurred that have been borne by the purchaser.

In the case of external financing, the amortization, the interest, the cost of the instruments for hedging the variable interest rate risk of the mortgage loans regulated in article nineteen of Law 36/2003, of November 11, on economic reform measures, and other expenses derived therefrom, such as the premiums for life and fire insurance contracts, provided that they are included in the conditions of the mortgage loans obtained for the acquisition or rehabilitation of the habitual residence.

In the event of application of the aforementioned hedging instruments, the interest paid by the taxpayer will be reduced by the amounts obtained from the application of the aforementioned instrument.

They do not form part of the basis of the deduction:

When a primary residence is acquired after having benefited from the deduction for the acquisition of other previous primary residences, no deduction may be made for the acquisition or rehabilitation of the new residence as long as the amounts invested in it do not exceed those invested in the previous residences, to the extent that they were subject to deduction.
When the sale of a habitual residence has generated a capital gain exempt by reinvestment, the deduction base for the acquisition or rehabilitation of the new one will be reduced by the amount of the capital gain to which the exemption for reinvestment is applied.

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 exempt capital gain from reinvestment.

The costs of maintenance or repair. For these purposes, the following will be considered:
- Those carried out regularly for the purpose of maintaining the normal use of material assets, such as painting, plastering or repairing facilities.
- Those for replacing elements, such as heating systems, elevators, security doors or others.
The amounts that, due to the application of floor clauses, have been paid by the taxpayer in the fiscal year, when before the end of the deadline for filing the self-assessment of IRPF for said fiscal year, an agreement is reached to return them with the financial institution, or such return proceeds as a consequence of the execution or compliance with court rulings or arbitration awards.
Those amounts paid in previous years by the taxpayer in application of the floor clauses subject to refund that are directly allocated by the financial institution in the year, following an agreement with the affected taxpayer, judgment or arbitration award, to reduce the principal of the loan.

Checking the assets situation

The application of the deduction for investment in housing 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, without taking into account the interest and other financing costs.

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