Regulations: Transitional provision eighteenth Law Personal Income Tax ; Twelfth transitional provision Regulation IRPF
Law 16/2012, of December 27, which adopts various tax measures aimed at consolidating public finances and promoting economic activity ( BOE of December 28 ) eliminated, with effect from January 1, 2013, the deduction for investment in habitual residence.
However, for taxpayers who were deducting for habitual residence prior to January 1, 2013 (except for contributions to housing accounts), the aforementioned Law 16/2012 introduced a transitional regime that allows them to continue enjoying the deduction in the same terms and with the same conditions existing as of December 31, 2012.
To whom does the transitional regime apply?
Only the following taxpayers will have the right to apply the deduction for investment in habitual residence in 2022 for the amounts paid in the period:
Taxpayers who had acquired their habitual residence prior to January 1, 2013, or after said date, provided that in the latter case amounts had been paid for its construction before January 1, 2013 and the completion of the works would have been produced within the deadlines established by the applicable Personal Income Tax regulations.
Note: The modality of “construction of the habitual residence” is no longer possible in fiscal year 2022, having concluded the four-year period, plus the extension, if applicable, of another four additional years and adding the 78 days corresponding to the period between on March 14 and May 30, 2020, during which the calculation of deadlines provided for in the ninth Additional Provision of Royal Decree-Law 11/2020 was suspended.
In accordance with the above, the taxpayer must have completed the construction works of their habitual residence and have legally acquired it before March 20, 2021 to continue being entitled to the transitional regime of this deduction. However, the right to apply the transitional regime continues with respect to the amounts that the taxpayer continues to pay in relation to the construction or acquisition, when external financing has been used, as long as the requirements for completion on time, occupation and residence are met. effective and permanent.
In these cases, taxpayers must include the amounts paid in the year within the “acquisition and/or construction of habitual residence” modality in Annex A.1 of the declaration , indicating the date of the deed of acquisition or new construction of the home.
Taxpayers who had paid amounts prior to January 1, 2013 for rehabilitation or expansion works on their habitual residence, provided that the aforementioned works had been completed before January 1, 2017.
Taxpayers who had paid amounts to carry out works and installations to adapt the habitual residence of people with disabilities before January 1, 2013, as long as the aforementioned works or installations were completed before January 1, 2017. .
In any case, in order to apply the transitional deduction regime, it is required that taxpayers have made the deduction for said home in 2012 or in previous years, unless they have not been able to make it yet because the amount invested in it has not exceeded the amounts invested in previous homes, to the extent that they had been subject to deduction and, where applicable, the amount of capital gains exempt from reinvestment.
How the deduction is applied in the transitional regime
The eighteenth transitional provision of the Income Tax Law maintains, for taxpayers who are entitled to the transitional regime, the application of the regulation contained in articles 67.1, 68.1, 70.1, 77.1, and 78 of the Personal Income Tax Law in its wording in force on December 31, 2012, without prejudice to the deduction percentages that, in accordance with the provisions of Law 22/2009, have been approved by the Autonomous community.
Likewise, the new twelfth transitional provision of the Personal Income Tax Regulation provides for the application of the provisions of Chapter I of Title for taxpayers who are entitled to the transitional regime of the deduction for investment in habitual residence. IV, in the wording in force as of December 31, 2012.
Obligation to submit a declaration
Taxpayers who wish to exercise the right to the deduction for investment in habitual residence of the transitional regime will be obliged, in any case, to submit a declaration for Personal Income Tax .