For investment in the habitual residence of young people under 36 years of age

Regulations: Article 32.11 Law 10/2017, of October 27, which consolidates the legal provisions of the Autonomous Community of La Rioja regarding own taxes and assigned taxes.

Amount and requirements for applying the deduction

• 15 percent of the amounts paid in the year for the acquisition, construction, expansion or rehabilitation of the taxpayer's habitual residence provided that they are met the following requirements:

  1. That the home is located in the territory of the Autonomous Community of La Rioja.
  2. That the taxpayer is under 36 years old on the tax accrual date (normally December 31).
  3. That the home constitutes or will constitute the habitual residence of the taxpayer .
  4. That the home must have been acquired after January 1, 2013 or the rehabilitation started after that date

  5. That the general taxable base subject to taxation according to article 50 of the Personal Income Tax Law does not exceed of the following amounts:

     • 18,030 euros in individual declaration.
     • 30,050 euros in joint declaration.

     Provided, furthermore, that the taxable base of savings subject to taxation according to article 50 of the Personal Income Tax Law does not exceed 1,800 euros .

     The amount of the general taxable base subject to taxation according to article 50 of the Personal Income Tax Law is reflected in box [0500] of the statement.

     For its part, the amount of the taxable base of the savings subject to taxation according to article 50 of the Personal Income Tax Law is the one reflected in box [0510] of the statement.

Deduction base

• The base of this deduction 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 third-party 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.

• The maximum annual base of this deduction will be 9,000 euros.

Other conditions for the application of the deduction

• Primary residence will be understood as one in which the taxpayer resides for a continuous period of three years. However, it will be understood that the home had that character when, despite the said period not having elapsed, the death of the taxpayer occurs or circumstances arise that necessarily require the change of home, such as marital separation, job transfer, obtaining first employment or more advantageous employment or other similar ones.

• The concept of acquisition will be that defined in article 58 bis of Law 10/2017, of October 27, which consolidates the legal provisions of the Autonomous Community of La Rioja regarding own taxes and assigned taxes.

  For these purposes, the construction or extension of the same is assimilated to the acquisition of housing, in the following terms:

  • Extension of housing, when the increase in its habitable surface occurs, by enclosing an open part or by any other means, permanently and during all times of the year.
  • Construction, when the taxpayer directly pays the expenses derived from the execution of the works, or delivers amounts on account to the promoter of those works, as long as they are completed within a period of no more than four years from the beginning of the investment.

  On the contrary, the following will not be considered a home purchase:

  1. Conservation or repair costs. For these purposes, the following will be considered repair and conservation expenses:
     • Those carried out regularly with the purpose of maintaining the normal use of material assets, such as painting, plastering or repairing facilities.
     • Those for replacing elements, such as heating installations, elevators, security doors or others.
  2. The best.
  3. The acquisition of parking spaces, gardens, parks, swimming pools and sports facilities and, in general, annexes or any other element that does not constitute the home itself, provided that they are acquired independently of it. The parking spaces acquired with these will be treated as homes, with a maximum of two.
• The concept of rehabilitation must meet the conditions established in article 55 of the Personal Income Tax Regulations , in its current wording as of December 31, 2012.

• 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, in the extent to which 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 home will be reduced by the amount of the capital gain to which the exemption from reinvestment 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.

• In order to apply this deduction, regardless of the taxpayer who is the beneficiary of the measure, it is required that the proven amount of the taxpayer's assets at the end of the tax period exceeds of the value shown by its verification at the beginning of the same at least in the amount of the investments made , without computing interest and other financing expenses.

  For these purposes, the increases or decreases in value experienced during the tax period by the assets that at the end of the period continue to form part of the taxpayer's assets will not be computed, nor will the increase in assets obtained by taxable events subject to the Inheritance and Donation Tax.

Incompatibility

This deduction is incompatible with the regional deductions "For the amounts invested in rehabilitation works of the habitual residence" and "For amounts invested in the acquisition or construction of habitual residence for young people" provided for in sections a) and b) of the transitional provision 1 ª of Law 10/2017 discussed below, for those young people who had acquired or rehabilitated their home before January 1, 2013 .

When the above circumstance occurs, the taxpayer will continue to apply the regional deductions "For the amounts invested in rehabilitation works of the habitual residence" and "For amounts invested in the acquisition or construction of habitual residence for young people", which corresponds, and cannot be applied the present deduction for investment in the habitual residence of young people under 36 years of age.