For acquisition or rehabilitation of the habitual residence in rural areas

Regulations: Art. 12 ter and Second Additional Provision of Law 8/2013, of November 21, of the Autonomous Community of Castilla-La Mancha, on Tax Measures

Deduction amount

15 per 100 of the amounts that during the tax period are paid by the taxpayer for the acquisition or rehabilitation of the home that constitutes or will constitute his habitual residence

Requirements for applying the deduction

To be entitled to the deduction, the following requirements must be met simultaneously:

• That the home is located in one of the municipalities included in the sparsely populated areas referred to in article 12 of Law 2/2021, of May 7, on Economic and Social Measures and Tax Laws against Depopulation and for the Development of the Rural Environment in Castilla-La Mancha, and that its population is less than 5,000 inhabitants .

  In accordance with article 12 of Law 2/2021, those groups of municipalities or population centers made up mainly of small municipalities, with a joint population density of less than 12.5 inhabitants per km2, high aging rates and intense population losses, with significant geographic isolation with respect to municipalities with more than 30,000 inhabitants, a high percentage of land used for forestry, and a high significance of agricultural activity.

  Considering the degree of depopulation, the following categories of sparsely populated areas are established:

  a) Areas of intense depopulation : Those groupings of municipalities with a density greater than 8 inhabitants per km2.

  b) Areas of extreme depopulation : Those groups of municipalities with a population density of less than 8 inhabitants per km2.

  Note: For the application of this deduction, the population of the municipalities will be taken as the population that, according to their respective municipal register, they had on January 1 of each year.

  For the purposes indicated in the previous paragraph, population variations with respect to the 2021 municipal register that entail a reduction or non-application of the deductions that are appropriate according to it will not be taken into consideration. In such cases, said deductions may continue to be applied under the conditions and amounts that are appropriate according to the population of the aforementioned municipal registry.

  List of sparsely populated areas

  See Decree 108/2021, of October 19, which determines the rural areas of Castilla-La Mancha , in accordance with the typology established in article 11 of Law 2/ 2021 of May 7, on Economic, Social and Tax Measures against Depopulation and for the Development of the Rural Environment in Castilla-La Mancha (BOCL 10-25-2021)

• That the acquisition or rehabilitation of home has occurred after January 1, 2021 .

• 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, at least by the amount of the investments made, without computing interest and other expenses. financing.

  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.

Base of deduction and maximum base of deduction

• Deduction base

  It will consist of the amounts paid for the acquisition or rehabilitation of the home, including the expenses incurred that have been borne by the purchaser.

  When the acquisition or rehabilitation is carried out with external financing, amortization, interest, and the cost of variable interest rate risk coverage instruments for mortgage loans regulated in article nineteen of the Law will form part of the basis of the deduction. 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.

• Maximum total base of the deduction

  a) For all the years in which the deduction is applied:

  It will be the lesser of:

  • 180,000 euros , or

    Note: In the case of homes acquired by several taxpayers, the amount of 180,000 euros refers to the home, so said amount must be distributed among the purchasers in proportion to the percentage of ownership they have in the home.

  • The amount of acquisition or rehabilitation of the home that gives rise to the deduction, reduced by the amounts received from the Community Board of Castilla-La Mancha as subsidies for the acquisition or rehabilitation of housing.

  b) In each exercise :

  The maximum base to be applied in each year will be 12,000 euros .

  This maximum annual base of the deduction will be 12,000 euros for both individual and joint taxation. That is, in joint taxation the maximum annual base (12,000 euros) is applied regardless of the number of members of the family unit that satisfy the amounts that give the right to apply the deduction.

  c) Other conditions

  • When a habitual residence is acquired having already enjoyed this same deduction , the maximum total base of the deduction will be reduced by the amounts invested in the acquisition of the previous homes, as long as said amounts had been subject to deduction.

  • When, on the occasion of the sale of a habitual residence for which this deduction has been made, an exempt capital gain is generated by reinvestment, the deduction base for the acquisition or rehabilitation of the new home It will be reduced by the amount of the capital gain to which the reinvestment 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.

  • In the cases of marital annulment, divorce or judicial separation , the taxpayer may continue to make this deduction, in the terms provided in the state regulations for the Personal Income Tax, by the amounts paid in the tax period for the acquisition of what was their habitual residence during the duration of the marriage, as long as it continues to have this condition for the common children and the parent in whose company they remain.

Concepts that give the right to deduction

For the application of the deduction provided for in this article, the following concepts will be taken into account:

• Main residence

  In general, the building that constitutes the taxpayer's residence for a continuous period of at least three years is considered the taxpayer's habitual residence. However, it will be understood that the home was considered habitual when, despite the said period not having elapsed, the death of the taxpayer occurs or other circumstances arise that necessarily require the change of address, such as celebration of marriage, marital separation. , job transfer, obtaining the first job, or change of job, or other justified analogues. For the home to constitute the taxpayer's habitual residence, it must be effectively and permanently inhabited by the taxpayer within a period of twelve months, counted from the date of acquisition or completion of the works. However, it will be understood that the home does not lose its habitual character when the death of the taxpayer occurs or other circumstances occur that necessarily prevent the occupation of the home, in the terms provided in the previous paragraph. When the exceptions provided for in the two previous paragraphs apply, the deduction for the acquisition of housing will be applied until the moment in which the circumstances arise that necessarily require the change of housing or prevent its occupation.

• Acquisition of habitual residence

  The acquisition of a habitual residence will be understood as the acquisition in the legal sense of the right of ownership or full ownership of the same, even if this is shared, the legal transaction that originates it being indifferent.

• Construction and expansion

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

  Housing extension: 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 the works, provided that the final certificate of work is issued within a period of no more than four years from the start of the investment.

• Rehabilitation works of the habitual residence

  Rehabilitation works of the habitual residence will be considered those whose main objective is the reconstruction of the dwelling 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 percent. cent 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, of 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.