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Practical manual for Income Tax 2020.

Maximum deductible investment bases

Regulations: Art. 68.1 1 and 4 d) Law IRPF , drafted on 31-12-2012

  • For investments in the acquisition, rehabilitation, construction or expansion of the habitual residence: 9,040 euros per year .

    This limit will be unique for all the investment items mentioned above and will be applied in the same amount for joint taxation.

    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 was applied in a year prior to 2013 in the percentage corresponding to their participation in the joint ownership.

    In this case, the application of the deduction for the acquired part until completing 100% of the full ownership of the property will have as a limit the amount that the co-owner who ceases to be the owner of the property would have had the right to deduct from the date of termination of the condominium 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 apply the deduction for the acquisition of a habitual residence by the date of termination of the condominium. See in this regard the Resolution of the TEAC of October 1, 2020 in an extraordinary appeal for unification of criteria.

  • For amounts used to carry out works or installations to adapt the taxpayer's main residence due to disability: 12,080 euros per year.

    This limit is also applied with joint taxation.

    In both cases, any excess quantity invested above these amounts cannot be transferred to future fiscal years.

    Important : This last limit is independent of the limit of 9,040 euros established for the remaining deductible concepts for investment in habitual residence. Consequently, if the right to deduction for amounts used to carry out works and installations to adapt the taxpayer's habitual residence for reasons of disability were to concur with the right to deduction for investment in habitual residence, the amounts invested in acquisition would give the right to deduction up to the maximum amount of 9,040 euros and those used in works and installations for adaptation would give the right, in turn, to deduction up to the maximum amount of 12,080 euros.