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Practical manual for Income Tax 2019.

For amounts invested in the acquisition or construction of habitual housing for young people

Regulations: First transitional provision.b) of Law 10/2017, of October 27, which consolidates the legal provisions of the Autonomous Community of La Rioja regarding own taxes and transferred taxes.

Amount of deduction

  • 3% of the amounts paid in the year for the acquisition of that home that, located in the Autonomous Community of La Rioja, constitutes or will constitute the habitual residence, provided that the taxpayers are considered "young" for the purposes of this deduction in the terms discussed below.
  • 5% of the amounts paid in the year for the acquisition of that home which, being located in the Autonomous Community of La Rioja, constitutes or will constitute the habitual residence, provided that the taxpayers are considered to be "young" for the purposes of this deduction in the terms discussed below, whose general taxable base subject to taxation according to article 56 of the Personal Income Tax Law does not exceed the following amounts:
    • 18,030 euros in individual declaration.
    • 30,050 euros in joint declaration.

    provided that, in addition, the taxable savings base subject to taxation according to article 56 of the Personal Income Tax Law does not exceed 1,800 euros .

    The determination of these amounts is carried out in accordance with the provisions in this regard in the deduction "For investment in the rehabilitation of the habitual residence".

Requirements and other conditions for the application of the deduction

  • The following taxpayers will be entitled to this deduction:
    1. Those who had acquired their habitual residence before January 1, 2013.
    2. Those who had paid amounts prior to that date for its construction.

      In the latter case, except for the exceptional extensions contemplated in the tax regulations in force on December 31, 2012, the works must be completed within four years from the start of the investment, in accordance with the deduction regime applicable in the case of construction of a primary residence.

    3. Taxpayers who have paid amounts prior to January 1, 2013 for works to extend their habitual residence, provided that the aforementioned works are completed before January 1, 2017.
  • In any case, it will be necessary for the taxpayer to have practiced the deduction for investment in a habitual residence in a tax period accrued before January 1, 2013, unless they have not been able to practice it yet because the amount invested in it has not exceeded the amounts invested in previous homes, to the extent that they have been subject to deduction and, where applicable, the amount of exempt capital gains due to reinvestment. The same criteria required by the eighteenth transitional provision of the Income Tax Law must be in order to be entitled to apply the transitional regime of the state deduction for investment in the acquisition or construction of a habitual residence. Specifically:
  • In addition, all requirements established, in general, in the state regulations governing Personal Income Tax must be met, in its version in force on December 31, 2012, on the concepts of habitual residence, acquisition thereof and elements that make up the basis of the applicable deduction, as well as on verification of the taxpayer's financial situation at the end of the tax period.
  • That the purchasers are young people with habitual residence in the Autonomous Community of La Rioja . This category includes taxpayers who have not reached 36 years of age at the end of the tax period (normally, December 31).
  • The maximum annual base of the regional deductions for the acquisition of housing and second homes in rural areas will be constituted by the amount resulting from reducing the amount of 9,040 euros by those amounts that constitute for the taxpayer the base of the deduction for investment in habitual housing contemplated in the state regulations, provided that the taxpayer has the right to apply the transitional regime of the deduction for investment in habitual housing provided for in the eighteenth transitional provision of the Personal Income Tax Law , excluding, where applicable, the amounts destined to works to adapt the habitual residence due to disability.
  • In the case of joint taxation , only taxpayers included in the family unit who are considered "young" in the terms discussed above will be able to benefit from this deduction, for the amounts actually invested by them.

    Note: Those young people who had acquired or renovated their home before 1 January 2013 must continue to apply this deduction instead of the deduction for investment in the habitual residence of young people under 36 years of age, which is incompatible with this deduction.