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Practical manual for Income Tax 2019.

Investment in protected habitual residence

Amount of deduction

2 percent of the amounts paid in the tax period for the acquisition or rehabilitation of the property that constitutes or will constitute the habitual residence of the taxpayer.

Regarding the concept of habitual residence, see article 2 of Legislative Decree 1/2018. Also, please note that the concept of habitual residence established by the state regulations of Personal Income Tax in force on December 31, 2012 is discussed in the section “General conditions and requirements” of the section “Deduction for investment in habitual residence. "Transitional regime" of Chapter 16.

Specific requirements for the application of the deduction

  • That the property has the protected classification in accordance with the regulations of the Autonomous Community of Andalusia on the date of accrual of the tax (normally, December 31).
  • That the annual income of the family unit of which the taxpayer is a member does not exceed 2.50 times the Public Indicator of Income for Multiple Effects (IPREM) in the case of protected housing under a special regime, 3.50 times the IPREM for protected housing under the general regime and 5.50 times the IPREM in protected housing with a limited price, in accordance with the provisions of article 23 of the Andalusian Housing and Rehabilitation Plan 2016-2020, approved by Decree 141/2016, of August 2.

    The amount of the annual IPREM for 2019 taken as a reference amounts to 6,454.03 euros, so the quantitative limit for protected housing is set at 16,135.07 euros (protected housing under a special regime), 22,589.10 euros (protected housing under a general regime) and 35,497.16 euros (protected housing with a limited price).

    The annual income of the family unit is considered to be the income composed of the general tax base and the savings tax base, boxes [0435] and [0460] of the declaration.

  • That the acquisition or rehabilitation of the habitual residence has begun on or after January 1, 2003. For these purposes, it will be understood that the investment in the acquisition or rehabilitation of the habitual residence begins on the date stated in the acquisition or works contract, as appropriate.