10.13.17. For 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 will be able to apply a 10% deduction. % of the amount allocated to the acquisition of a new primary residence.

Requirements and conditions

• That the acquisition of the new habitual residence takes place within 5 years following the date on which the family of the taxpayer has reached legal consideration of being large or, if it was previously large, within the period of 5 years following the birth or adoption of each child.

  The above assumption will be understood to include the extension of the home by acquiring an adjacent property, which within the period indicated above is physically joined to the home to form a single property of greater surface area, even if they are registered as separate properties, or by any other case of extension, such as those contemplated in the state regulations on the deduction of habitual residence.

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

• The deduction is only applicable to home purchases or extensions made after January 1, 2023.

• That the useful surface of the house increases by more than 10 % in accordance with the information in the Cadastre.

• That within a period of 5 years from the acquisition of the new habitual residence, the previous one is sold or expanded. In this last case, two assumptions must be distinguished:

  1. That another property be acquired to be joined to the current one. The acquisition must be made within 5 years from reaching large family status or from the birth of the new child. 

  2. That the surface area be expanded without acquiring another property. The extension works must be carried out within 5 years from the moment in which the family becomes a large family or from the birth of the new child.

• The legal status of a large family is acquired from the moment in which 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 made through the official title of large family, or by any means of proof admissible under law.

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

Deduction base

The basis for the deduction is the amounts paid for the acquisition of the home, including the expenses incurred by the purchaser and, in the case of external financing, the amortization, the interest, the cost of the instruments to cover the variable interest rate risk of 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 deduction base 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 with the right 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 is lost due to failure to comply with the requirement of selling the previous home or extending the habitual home within the established period, the taxpayer will be obliged to add to the regional net tax accrued in the year in which said requirement was not met, the amounts unduly deducted, plus the corresponding late payment interest.

Completion

The data capture window will indicate the amount paid with the right to deduction.