For acquisition or rehabilitation of the habitual residence in rural areas

Regulations: Art. 11 bis Consolidated text of the legal provisions of the Autonomous Community of Extremadura regarding taxes transferred by the State, approved by Legislative Decree 1/2018, of April 10

Amount and maximum limit of the deduction

10 percent of the amounts paid during the tax period for the acquisition or rehabilitation of the home that constitutes or will constitute the taxpayer's habitual residence, reduced by the amount of subsidies received from the Government of Extremadura in the form of subsidies for the acquisition or rehabilitation of housing.

Requirements for applying the deduction

That the home is located in one of the municipalities and minor local entities of Extremadura in which the population as of December 31 is less than 3,000 inhabitants.

You can consult the municipalities and smaller local entities with a population of less than 3,000 inhabitants at the following link: " Municipalities and smaller local entities with a population of less than 3,000 inhabitants ".
That the acquisition or rehabilitation of the home has occurred as of January 1, 2022.

Deduction base

The base of the deduction will be constituted by the amounts paid as of January 1, 2022 for the acquisition or rehabilitation of the home, including the expenses incurred that have been borne by the purchaser, and reduced by the amount of subsidies received from the Government of Extremadura in the form of subsidies for the acquisition or rehabilitation of housing.
When the acquisition or rehabilitation of the home is carried out with external financing, amortization, interest, and the cost of variable interest rate risk hedging instruments for mortgage loans regulated in article nineteen will form part of the deduction base. 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.

Maximum base of the deduction

Total maximum base for all years in which the deduction is applied:

Will be the smallest of the following quantities:
- 180,000 euros, or
- The amount of acquisition or rehabilitation of the home that gives rise to the deduction, reduced by the amounts received from the Government of Extremadura as subsidies for the acquisition or rehabilitation of the home.
Precision: The total maximum base amount is applied per home, not per taxpayer, so in the case of homes acquired by several taxpayers, the amount of 180,000 euros, established to determine the maximum base of the deduction, will be prorated in proportion to the ownership percentage. that they have in the aforementioned home.
Maximum base in each exercise:

The maximum base to be applied in each year will be 9,040 euros , both in individual taxation and in joint taxation.

Other conditions for the application of the deduction

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 they had been subject to deduction.
When, on the occasion of the sale of a habitual residence for which this deduction had been made an exempt capital gain is generated by reinvestment , the deduction base For the acquisition or rehabilitation of the new home, the amount of the capital gain to which the reinvestment exemption applies will be reduced. 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 to take into account for the application of the deduction

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:
1. 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.
  
  For the purposes of determining whether the taxpayer has the right to apply the deduction for expanding the habitual residence, the acquisition will be deemed to have occurred at the time the certificate of completion of work is obtained.
2. 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.
  
  For the purposes of determining whether the taxpayer has the right to apply the deduction, in cases of construction, the acquisition of the habitual residence will be deemed to have occurred with the granting of the public deed of completed new construction.
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.

Verification of the financial situation: effective deductible investment base

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 , 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.

See chapter 16 for verification of the financial situation .

Incompatibility

This deduction cannot be combined, for the same taxpayer, with the deductions "For the acquisition of housing for young people and for victims of terrorism residing in the Autonomous Community of Extremadura" and "For interest on external financing for investment in habitual housing for young people ".