Skip to main content
Form 100. Personal Income Tax Return 2022

10.10.2. For the acquisition or rehabilitation of habitual housing 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 the following requirements are met simultaneously:

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

  • That the acquisition or rehabilitation of the home takes place 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 extension, with the obtaining of the certificate of completion of work.

Deduction base

  • The basis for this deduction will be the amounts paid for the acquisition or rehabilitation of the home as of January 1, 2022, including the expenses incurred by the purchaser and, in the case of external financing, the amortization, interest, the cost of the instruments to cover the variable interest rate risk of 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 from the application of the aforementioned instrument.

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

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

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

    In joint taxation, the total amount will be 9,040 euros, regardless of the number of members of the family unit who pay the amounts that entitle them to apply the deduction.

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

Conditions

  • When a primary residence is acquired after 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 residences, provided they have been subject to tax relief.

  • When the sale of a habitual residence for which the deduction provided for in this article has been made generates an exempt capital gain through reinvestment, the deduction base for the acquisition or rehabilitation of the new residence 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.

  • In the event of annulment of marriage, divorce or legal separation, the taxpayer may continue to apply this deduction, under the terms provided for in the state regulations on personal income tax, for the amounts paid in the tax period for the acquisition of what was the 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 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 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.

Items

  • The taxpayer's habitual residence is considered to be the building that constitutes his or her residence for a continuous period of at least three years. However, the dwelling will be deemed to have had a habitual residence status when, despite the aforementioned period not having elapsed, the taxpayer dies or other circumstances occur that necessarily require a change of address, such as a marriage, marital separation, job transfer, obtaining the first job, or change of employment, or other similar justified circumstances.

    For the dwelling to constitute the habitual residence of the taxpayer, it must be effectively and permanently inhabited by the taxpayer within a period of twelve months, counting from the date of acquisition or completion of the works. However, it will be understood that the dwelling does not lose its habitual character when the death of the taxpayer occurs or other circumstances occur that necessarily prevent the occupation of the dwelling, in the terms provided for in the previous paragraph.

    When the exceptions provided for in the two preceding paragraphs apply, the deduction for the acquisition of a home will be applied until the circumstances arise that necessarily require the change of home or prevent its occupation.

  • The acquisition of a habitual residence shall 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, regardless of the legal transaction that originates it.

    The construction or expansion of a home is considered to be the acquisition of a home, in the following terms:

    • Housing extension: when there is an increase in its habitable surface area, by enclosing the uncovered part or by any other means, permanently and at all times of the year.

    • Construction: when the taxpayer directly covers the costs arising from the execution of the works, or pays 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.

  • Rehabilitation works on a habitual residence shall be considered to be those whose main objective is the reconstruction of the residence by consolidating and treating the structures, facades or roofs and other similar works, provided that the overall cost of the rehabilitation operations exceeds 25% of the purchase price if it had been carried out during the two years immediately prior to the start of the rehabilitation works or, otherwise, the market value of the residence at the time of said start. For these purposes, the proportional part corresponding to the land will be deducted from the purchase price or market value of the home.

Incompatibility

This deduction is incompatible with the deduction "For the acquisition or rehabilitation of habitual housing for young people and for victims of terrorism" and with the deduction "For interests from external financing for investment in habitual housing for young people"

Completion

The amount paid will be recorded with the right to deduction.