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Form 100. Personal Income Tax Declaration 2022

10.10.2. For acquisition or rehabilitation of habitual residence in rural areas

Amount and requirements

Taxpayers may deduct 10% of the amounts they pay during the tax period for the acquisition or rehabilitation of the home that constitutes or will constitute their habitual residence, provided that they are met, simultaneously , the following requirements:

  • That the home is located in one of the municipalities and minor local entities of Extremadura in which the population as of December 31 is less than 3,000 inhabitants.

  • That the acquisition or rehabilitation of the home occurs from January 1, 2022.

    In the case of construction, the acquisition of the home will occur with the granting of the public deed of completed new construction. In the case of expansion with obtaining the certificate of completion of work.

Deduction base

  • The basis of this deduction will be constituted by the amounts paid for the acquisition or rehabilitation of the home as of January 1, 2022, including the expenses incurred that have been borne by the purchaser and, in the case of third-party financing, the amortization, the interest, the cost of variable interest rate risk hedging instruments for 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 the application of the aforementioned instrument.

  • The maximum total base of the deduction will be 180,000 euros, or the amount of acquisition or rehabilitation of the home that gives rise to the deduction if this is lower, reduced by the amounts received from the Government of Extremadura as subsidies for the acquisition. or rehabilitation of the home. In turn, the maximum base to be applied in each year will be 9,040 euros.

  • The amount of 180,000 euros refers to housing. Therefore, in the case of homes acquired by several taxpayers, said amount must be distributed among the purchasers in proportion to their percentage of ownership.

  • In individual taxation, the maximum annual base of the deduction is 9,040 euros for each of the spouses.

    In joint taxation it will be 9,040 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.

  • The total amount of the subsidies received will be taken into account to determine the maximum total base of the housing deduction and the amount received annually will reduce the amounts paid in each year.

Conditions

  • When a habitual residence is acquired having already enjoyed the deduction provided for in this article, the maximum base of the deduction will be reduced by the amounts invested in the acquisition of the previous homes, as long as they have been subject to tax relief.

  • When, on the occasion of the sale of a habitual home for which the deduction provided for in this article 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 which the reinvestment 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 practice 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 what was during the validity of the marriage their habitual residence, as long as it continues to have this condition for their joint 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.

Items

  • The building that constitutes the taxpayer's residence for a continuous period of at least three years is considered the taxpayer's habitual residence. 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.

  • The acquisition of a habitual residence will be understood as 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:

    • Housing extension: when there is an increase in its habitable surface, 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 they are completed within a period of no more than four years from the beginning of the investment.

  • Rehabilitation works of the habitual residence will be considered 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, of 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.

Incompatibility

This deduction is incompatible with the deduction "For acquisition or rehabilitation of primary residence for young people and for victims of terrorism" and with the deduction "For interest on external financing for investment in primary residence for young people"

Completion

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