10.7.15. For acquisition or rehabilitation of the habitual residence in rural areas

Amount

15% of the amounts that during the tax period they pay for the acquisition or rehabilitation of the home that constitutes or will constitute their habitual residence.

Requirements

1. That the home is located in one of the municipalities included in the sparsely populated areas (extreme depopulation and intense depopulation) and that the population thereof is less than 5,000 inhabitants.

2. That the acquisition or rehabilitation of the home has taken place after January 1, 2021.

Deduction base

• The amounts paid for the acquisition or renovation 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 regulated mortgage loans, and other expenses derived from it. 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 total maximum base of the deduction will be the lesser of: 180,000 euros or the amount of the acquisition or renovation of the home that gives rise to the deduction, reduced by the amounts received from the Regional Government of Castilla-La Mancha in the form of subsidies for the acquisition or renovation of the home.

  In the case of homes purchased by several taxpayers, since the deduction base refers to the home, the amount of 180,000 euros must be distributed among the purchasers in proportion to their percentage of ownership.

  In turn, the maximum base to be applied in each fiscal year will be 12,000 euros. In joint taxation, the maximum base will be 12,000 euros in total, regardless of the number of members of the family unit who satisfy the amounts that entitle them to apply the deduction.

• When a primary residence is acquired after having already enjoyed this deduction, the total maximum base of the deduction will be reduced by the amounts invested in the acquisition of the previous residences, as long as said amounts were subject to deduction.

• When the sale of a habitual residence for which this deduction has been applied 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 during the marriage his or her habitual residence, 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.

Concepts for the purposes of deduction

• Habitual housing: the building that constitutes their 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.

• Acquisition of habitual residence : the acquisition in the legal sense of the right of ownership or full ownership thereof, even if this is shared, regardless of the legal transaction that gives rise to it. The construction or expansion of a home is considered to be the acquisition of a home, in the following terms:

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

  • Housing extension: When the habitable surface area is increased 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 expenses derived from the execution of the works, or delivers amounts on account to the promoter of the works, provided that the final certificate of work is issued within a period not exceeding four years from the start of the investment.

• Rehabilitation of the habitual residence: those whose main objective is the reconstruction of the dwelling by consolidating and treating the structures, facades or roofs and other similar operations, 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 dwelling 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.

Completion

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

You can consult the areas that allow the application of the deduction at: