9.1.1. Acquisition, construction, rehabilitation and expansion of the habitual residence

1. Taxpayers who meet the following requirements will be entitled to apply the deduction for investment in primary residence for the amounts paid in the fiscal year:

   1. In the case of an acquisition, it must have been legally acquired before 1 January 2013 or after that date, provided that in the latter case the amounts for construction had been paid before 1 January 2013 and the completion of the works had occurred within a period of no more than four years, extendable to a maximum of another four years in exceptional cases, from the start of the investment.

      Based on the above, the works should have been completed by 1 January 2017 or, in the case of an extension, by 1 January 2021.

      However, due to the health crisis caused by COVID-19, the period between March 14 and May 30, 2020 (78 days) is not taken into account for the purposes of calculating the term. Consequently, taxpayers had until March 19, 2021 to complete the works. 

      From that date, they will not be able to apply the deduction for habitual residence in the construction modality. However, those taxpayers who have completed the works and legally acquired ownership of the home before this deadline may continue to claim the deduction for the amounts paid in the year for the acquisition of their habitual residence.

   2. In the case of renovation works on the habitual residence, amounts have been paid for this concept prior to 1 January 2013, provided that the works are also completed before 1 January 2017.

   3. In the case of extensions to habitual residences, amounts have been paid for this purpose prior to 1 January 2013, provided that, in addition, the works are completed before 1 January 2017.

   In addition, the taxpayer must have claimed the deduction for said home in 2012 or in previous years, unless he or she was unable to claim it because the amount invested in it did not exceed the amounts invested in previous homes, to the extent that they were subject to deduction and, where applicable, the amount of exempt capital gains from reinvestment.

   • In the event of annulment of marriage, divorce or legal separation, the taxpayer may continue to claim the deduction for the amounts paid in the tax period for the acquisition of what was his or her 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 deduction may also be made for the amounts paid, where applicable, for the acquisition of the home that constitutes or will constitute your habitual residence, in this case the deduction base will be joint for the two homes (9,040 euros per year).

   • If, pursuant to a divorce court ruling, the taxpayer makes full payments on the loan for the purchase of the habitual residence that was granted jointly to both spouses and which was being repaid by both spouses before 1 January 2013, the taxpayer will be entitled to apply the deduction for the purchase of a habitual residence for all amounts paid for this purpose, even if he or she only owns 50% of the residence because the joint property has not been settled, both in the event that the residence continues to be considered habitual residence for him or her and in the event that the residence has this status for the common children and the other parent.

   • In the event of the termination of a joint ownership of a primary residence as of 1 January 2013, if one of the parties obtains 100% of the residence, they will be entitled to apply 100% of the deduction for the acquisition of a primary residence up to a total of 9,040 euros as a base, provided that said deduction had been applied in a financial year prior to 2013 in the percentage corresponding to their participation in the joint ownership, limited to the amount that the joint owner who ceases to be the owner of the property would have been entitled to deduct from the date of termination of the joint ownership if said termination had not taken place.

     The deduction will also be conditional on the fact that the co-owner who ceases to be the owner has not exhausted the possibility of continuing to practice the deduction by the date of termination of the condominium.