10.13.17. Due to the acquisition of a new habitual residence or expansion of the current habitual residence by large families

Amount and conditions

Taxpayers who are members of a large family may apply a deduction of 10 % of the amount allocated to the acquisition of a new habitual residence.

Requirements and conditions

• That the acquisition of the new habitual residence takes place within 5 years following the date on which the taxable person's family has achieved legal status as large or, if it was already large, within the following 5 years. upon the birth or adoption of each child.

  The previous case will be understood to include the expansion of the home through the acquisition of an adjacent property, which within the period indicated above is physically joined to the home to form a single one with a larger surface area, even if they are registered in the registry as different properties, or for any reason. another case of extension, such as those contemplated in the state regulations on deduction for habitual residence.

  The concept of habitual residence will be that established by state personal income tax regulations.

• The deduction is only applicable to home acquisitions or expansions that occur after January 1, 2023.

• That the useful surface area of ​​the home increases by more than 10 % according to the information in the Cadastre.

• That within a period of 5 years from the acquisition of the new habitual residence, the previous one must be sold, or its extension carried out. In this last case it will be necessary to distinguish two assumptions:

  1. That another property be acquired to join the current one. The acquisition must be made within 5 years from when the status of a large family is reached or from the birth of the new child. 

  2. That the surface area be expanded without acquiring another property. The expansion works will have to be carried out within a period of 5 years from the moment in which the status of a large family is acquired or from the birth of the new child.

• The legal status of a large family is acquired from the moment the requirements and conditions established in articles 2 and 3 of Law 40/2003, of November 18, on the Protection of Large Families, are met. Accreditation may be carried out through the official large family title, or by any means of proof admissible by law.

• The status of a large family must be met on the accrual date of each of the years in which the deduction is applied.

Deduction base

The basis of the deduction is made up of the amounts paid for the acquisition of the home, including the expenses incurred by the purchaser and, in the case of external financing, amortization, interest, the cost of the instruments to cover the risk of variable interest rate on mortgage loans, and other expenses derived from it. If these hedging instruments are applied, the interest paid by the taxpayer is reduced by the amounts obtained from their application.

The maximum base of the deduction is 5,000 euros per year both in individual and joint taxation, regardless of the number of members of the family unit who pay amounts entitled to apply the deduction.

Period to apply the deduction

The deduction may be applied for a maximum period of fifteen years from the year in which the acquisition of the new home or the property intended for the extension of the current home is carried out.

Loss of the right to deductions made

When the right to deductions made due to non-compliance with the requirement of the sale of the previous home or extension of the habitual residence is lost, within the established period, the taxpayer will be obliged to add to the autonomous liquid quota accrued in the year in which it was have failed to comply with said requirement, the amounts unduly deducted, plus the corresponding late payment interest.

Completion

In the data capture window, it will indicate the amount paid with the right to deduction.