Common requirements for the application of deductions

Base and maximum limit of the deduction

The base and maximum limit of the deductions provided for in the previous sections will be 9,040 euros , in accordance with the requirements and circumstances provided for in the state regulations of Personal Income Tax for the deduction for investment in habitual residence in force on December 31, 2012 and will be constituted by the amounts paid for the acquisition or rehabilitation of the home, including the expenses incurred that have been borne by the purchaser and, in the case of external financing, amortization, interest, the cost of variable interest rate risk hedging instruments for mortgage loans regulated in article nineteen of Law 36/2003, of November 11, on economic reform measures , and other expenses derived from it. In the event of application of the aforementioned hedging instruments, the interest paid by the taxpayer will be reduced by the amounts obtained by the application of the aforementioned instrument.

Other conditions for the application of the deduction

• In cases of marital annulment, divorce or judicial separation, the taxpayer may continue making these deductions, for the amounts paid in the tax period for the acquisition of what was their habitual residence during the term of the marriage, as long as it continues to have this condition. for common children and the parent in whose company they remain.

• When a habitual residence is acquired having enjoyed the deduction for the acquisition of other previous habitual residences , no deduction may be made for the acquisition or rehabilitation of the new one as long as the amounts invested in it do not exceed those invested in the previous ones, to the extent that they would have been subject to deduction.

  When the disposal of a habitual residence would have generated a capital gain exempt from reinvestment , the deduction base for the acquisition or rehabilitation of the new one will be reduced by the amount of the capital gain to which the rollover exemption applies. In this case, no deduction may be made for the acquisition of the new one as long as the amounts invested in it do not exceed both the price of the previous one, to the extent that it has been subject to deduction, and the capital gain exempt from reinvestment.

• Likewise, will be considered rehabilitation of habitual residence which meets the requirements and circumstances established by the state regulations of Personal Income Tax in force on December 31, 2012, specifically, the works carried out there that meet any of the following requirements:

  1. That these are subsidized actions regarding housing rehabilitation in the terms provided for in Royal Decree 106/2018, of March 9, which regulates the State Housing Plan 2018-2021, or Plan that replaces it.
  2. That their main purpose is the reconstruction of the home through the consolidation and treatment of the structures, facades or roofs and other similar ones, provided that the overall cost of the rehabilitation operations exceeds 25% of the acquisition price if this had been carried out. during the two years immediately prior to the start of the rehabilitation works or, otherwise, the market value of the home at the time of said start. For these purposes, the proportional part corresponding to the land will be deducted from the acquisition price or market value of the home.

Note: The deductions for investment in protected primary residence and for investment in primary residence by young people mentioned above are incompatible with each other.