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Practical Income Manual 2020.

Investment in protected habitual residence

Deduction amount

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, keep in mind that the concept of habitual residence established by the state regulations of the Personal Income Tax in force on December 31, 2012 is discussed in the section “ General conditions and requirements” of the heading “Deduction for investment in habitual residence. Transitional regime" of Chapter 16.

Specific requirements for the application of the deduction

  • That the home has the classification of protected 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 in which the taxpayer is integrated does not exceed 2.50 times the Multiple Effects Public Income Indicator (IPREM) in the case of subsidized housing. special regime, 3.50 times the IPREM for protected housing under the general regime and 5.50 times the IPREM in limited-price protected housing, in accordance with the provisions of article 23 of the Housing and Rehabilitation Plan of Andalusia 2016-2020, approved by Decree 141/2016, of August 2nd.

    The amount of the annual IPREM for 2020 that is 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 the special), 22,589.10 euros (general regime protected housing) and 35,497.16 euros (limited price protected housing).

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

  • That the acquisition or rehabilitation of the habitual residence has begun as of 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 applicable.