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Practical Income Manual 2021.

For investment in habitual residence by young people aged 35 or under

Note: Taxpayers who applied regional deductions for investment in housing prior to January 1, 2013, may apply on the amounts paid in fiscal year , for the same home, the " Transitional regime of the deduction for investment in primary residence ", which is discussed within the deductions of the Region of Murcia.

Regulations: Art. 1. One Text Recast of the legal provisions in force in the Region of Murcia regarding Assigned Taxes, approved by Legislative Decree 1/2010, of November 5.

Deduction amount

5 percent of the amounts paid in the year for the acquisition, construction, extension or rehabilitation of the home that constitutes or will constitute the habitual residence of the taxpayer, including the expenses incurred that have been borne by the purchaser and, in the case of third-party financing, amortization, interest and other expenses derived from it.

Primary residence will be understood as the home 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, most advantageous employment or other analogues.

Requirements and other conditions for the application of the deduction

Note: This deduction will apply to taxpayers who meet the requirements indicated below, regardless of the date on which the home was purchased or the rehabilitation or expansion works began. Therefore, taxpayers who have made the investment in their primary residence as of January 1, 2013 may apply it.

  • That taxpayers have their habitual residence in the Region of Murcia .

  • That taxpayers have an age equal to or less than 35 years at the time of the tax accrual date (normally, December 31).

  • That the sum of the general tax base and the tax base of the taxpayer's savings, boxes [ 0435 ] and [ 0460] of the declaration, is less than 24,107.20 euros , provided that the tax base of the savings , does not exceed the amount of 1,800 euros .

  • In the case of acquisition or extension of housing, it must be newly built homes . For these purposes, a newly built home will be considered a home whose acquisition represents the first transfer thereof after the declaration of new construction, provided that three years have not elapsed since said declaration.

  • In the case of housing rehabilitation , the works in it that meet the following requirements will be considered:

    1. That have been qualified or declared as a protected action in the field of housing rehabilitation in the terms provided for in Royal Decree 2066/2008, of December 12, which regulates the State Housing and Rehabilitation Plan 2009-2012, or with those state or regional regulations that replace them.

    2. Those established in the regulations governing the Personal Income Tax in the wording in force as of December 31, 2012.

  • The deduction will require that the verified amount of the taxable person's assets, at the end of the tax period, exceeds the value that its verification would yield at the end of the period, at least by the amount of the investments made, in accordance with the requirements generally established by the state regulations regulating Personal Income Tax .

Applicable limits:

A. Maximum base of investments with the right to deduction

The maximum base of the amounts paid with the right to this deduction will be constituted by the result of subtracting from the amount of 9,040 euros , those amounts that constitute the base for the taxpayer of said state deduction , excluding, where applicable, the amounts destined for works to adapt the habitual residence due to disability, and in no case can the difference be negative.

The rules established in state legislation in the wording in force as of December 31, 2012 are also applicable in relation to this deduction for cases in which deductions have been made for a previous habitual residence or the latter has been transferred obtaining a capital gain. that has been considered exempt due to reinvestment, as well as the requirement to increase the taxpayer's assets, at least in the amount of the investments entitled to the deduction.

B. Absolute maximum limit

The amount of this deduction may not exceed the amount of 300 euros per year , both in individual and joint taxation.