Transitional scheme

Regulations: Transitional provision eighteenth Law Personal Income Tax ; Twelfth transitional provision Regulation

Law 16/2012, of December 27, which adopts various tax measures aimed at consolidating public finances and promoting economic activity ( BOE of the 28th) eliminated, with effect from January 1, 2013, the deduction for investment in habitual residence.

However, for taxpayers who were deducting for habitual residence prior to January 1, 2013 (except for contributions to housing accounts), the aforementioned Law 16/2012 introduced a transitional regime that allows them to continue enjoying the deduction in the same terms and with the same conditions existing as of December 31, 2012.

To whom does the transitional regime apply?

Only the following taxpayers will be entitled to apply the deduction for investment in habitual residence for the amounts paid in the period in question:

1. Taxpayers who had acquired their habitual residence or paid amounts for its construction prior to January 1, 2013.
2. Taxpayers who had paid amounts prior to January 1, 2013 for rehabilitation or expansion works on their habitual residence, provided that the aforementioned works are completed before January 1, 2017.

3. Taxpayers who have paid amounts to carry out works and installations to adapt the habitual residence of people with disabilities prior to January 1, 2013, as long as the aforementioned works or installations are completed before January 1, 2017. .

In any case, in order to apply the transitional deduction regime, it is required that taxpayers have made the deduction for said home in 2012 or in previous years, unless they have not been able to make it yet because the amount invested in it has not exceeded the amounts invested in previous homes, to the extent that they had been subject to deduction and, where applicable, the amount of capital gains exempt from reinvestment.

Remember : Unlike what happens in the cases of acquisition, construction, rehabilitation or expansion of a habitual residence, taxpayers who, prior to January 1, 2013, had deposited amounts in housing accounts designated for them, were excluded from the benefits granted by the transitional regime. to the first acquisition or rehabilitation of the habitual residence.

How the deduction is applied in the transitional regime

The eighteenth transitional provision of the Income Tax Law maintains, for taxpayers who are entitled to the transitional regime, the application of the regulation contained in articles 67.1, 68.1, 70.1, 77.1, and 78 of the Personal Income Tax Law in its wording in force on December 31, 2012, without prejudice to the deduction percentages that, in accordance with the provisions of Law 22/2009, have been approved by the Autonomous community.

Likewise, the new twelfth transitional provision of the Personal Income Tax Regulation provides for the application of the provisions of Chapter I of Title for taxpayers who are entitled to the transitional regime of the deduction for investment in habitual residence. IV, in the wording in force as of December 31, 2012.

Obligation to submit a declaration

Taxpayers who wish to exercise the right to the deduction for investment in habitual residence of the transitional regime will be obliged, in any case, to submit a declaration for Personal Income Tax