9.1.2. Construction of habitual housing

The construction of a habitual residence was considered to be an acquisition when the taxpayer directly paid the costs arising from the execution of the works, or paid amounts on account to the developer of the works, provided that the amounts had been paid before 1 January 2013 and the works had been completed within a period of no more than four years, extendable to a maximum of another four years in exceptional cases, from the start of the investment. The works should therefore be completed by 1 January 2017 or, in the case of an extension, by 1 January 2021.

Due to the health crisis caused by COVID-19, for the purposes of calculating the deadline, in the case of an extension, the period between March 14 and May 30, 2020 (78 days) is not taken into account.

Consequently, taxpayers had until March 19, 2021 to complete the works.

From that date, they will not be able to apply the deduction for habitual residence in the construction modality.

However, those taxpayers who have completed the works and legally acquired ownership of the home before this deadline may continue to claim the deduction for the amounts paid in the year for the acquisition of their habitual residence.