Deduction limit: verification of the financial situation

Regulations: Art. 70 Law Income Tax

The application of this deduction will require that the verified amount of the taxpayer's assets at the end of the tax period exceeds the value shown by its verification at the beginning of the period by at least the amount of the investments made.

For these purposes, increases or decreases in value experienced during the tax period by assets that at the end of the period continue to form part of the taxpayer's assets will not be computed.

 The aim of this last requirement is to ensure that the amounts invested with the right to deduction come from income generated in the period, whether or not it is subject to personal income tax, avoiding deductions being made based on amounts that come from income generated in previous years.

Note: Regarding verification of the assets situation see what is discussed in the corresponding section of the "Deduction for investment in habitual residence: "Transitional regime" in this Chapter.