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Practical manual for Income Tax 2022.

Due to the increase in the costs of external financing in the investment of the habitual residence

Regulations: Art. 4.One.u) Law 13/1997, of December 23, regulating the autonomous section of the Personal Income Tax and other transferred taxes, of the Valencian Community

Note: This deduction is not applicable in the case of taxpayers who died before October 28, 2022.

Subjective scope of deduction

This deduction may only be applied by taxpayers with a loan established:

  • For the acquisition or rehabilitation of a home that constitutes or will constitute your habitual residence, or

  • For the adaptation of the home that constitutes your habitual residence due to disability.

The concept of habitual residence is the one contained in the current state regulations governing IRPF .

Amount and requirements for applying the deduction

  • 50% of the positive difference between the amounts paid during the tax period and those paid during the previous year, provided that the state deduction for investment in primary residence has not been applied.

  • The deduction will only be applicable to taxpayers whose sum of the general taxable base and the savings taxable base , boxes [0500] and [ 0510 ] of the declaration, respectively, is not greater than:

    • - 30,000 euros in individual declaration.

    • - 47,000 euros in joint declaration.

Special case: loans granted during 2021

In the event that the loan was established during the calendar year prior to the tax period, the interest paid during that year will be subtracted from the result of apportioning the amount of interest paid during the tax period by the quotient derived from dividing by 360 the number of days elapsed from the day following the date of the loan grant and the last day of the year of grant, without this calculation being able to result in an amount greater than that actually paid in this year.

Deduction limits based on taxable base

  • maximum annual amount of the deduction will be 100 euros.

  • The maximum deduction limit (100 euros) will only be applicable to taxpayers whose sum of the general taxable base and the savings taxable base is less than 27,000 euros, in individual taxation, or 44,000 euros, in joint taxation.

  • When the sum of the general taxable base and the savings taxable base of the taxpayer is between 27,000 and 30,000 euros , in individual taxation, or between 44,000 and 47,000 euros, in joint taxation, the deduction limits will be as follows:

    1. In individual taxation, is the result of multiplying the deduction limit (100 euros) by a percentage obtained by applying the following formula:

      100 × (1 – the coefficient resulting from dividing by 3,000 the difference between the sum of the general taxable base and the family unit savings and 27,000)

    2. In joint taxation , the result of multiplying the deduction limit (100 euros) by a percentage obtained by applying the following formula:

      100 × (1 – the coefficient resulting from dividing by 3,000 the difference between the sum of the general taxable base and the family unit savings and 44,000)