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Practical manual for Income Tax 2023.

Principal Residence item

Regulations: Articles 68.1 3 and 4 f) Law IRPF , drafted on 31-12-2012; 54 and 55.2 Regulation IRPF , edited on 31-12-2012

For the purposes of this deduction, a habitual residence is understood to be a building that meets the following requirements:

1. That constitutes the taxpayer's residence for a continuous period of at least three years

However, the dwelling will be deemed to have been habitual residence when, despite the three years indicated not having elapsed, the taxpayer dies or other circumstances occur that necessarily require a change of address, such as marriage, marital separation, job transfer, obtaining the first job, change of employment, or other justified similar circumstances.

It will also be understood as a circumstance that necessarily requires a change of residence, the fact that the previous one is unsuitable as a result of the disability of the taxpayer himself or his spouse or a relative, in a direct or collateral line, consanguineous or by affinity, up to the third degree inclusive, who lives with him.

See the comments on this issue that appear when explaining the concept of habitual residence in Chapter 11 of this Manual within the exemption for the transfer of the habitual residence with reinvestment of the amount obtained in another habitual residence.

The three-year period is for the purposes of classifying the home as habitual residence, without it being necessary for said period to have elapsed to begin applying the corresponding deduction in the terms discussed below. However, if once the property has been occupied the three-year residence period is not met, the deductions made would have to be repaid, unless any of the aforementioned situations apply.

Note: For the purposes of tax benefits related to the habitual residence, in cases of acquisition of the property in undivided ownership, if the taxpayer has resided uninterruptedly in the home since its acquisition, to calculate the three-year period to determine whether or not the property is considered a habitual residence, the date on which the undivided share was acquired must be taken into account, without the date on which the remaining share was acquired to complete 100% of the ownership of the common property being of any importance for these purposes. See in this regard the Resolution of the TEAC of September 10, 2015, Claim number 00/06331/2013, filed in an extraordinary appeal for unification of criteria.

2. That the taxpayer inhabits it effectively and permanently, for a period not exceeding twelve months, counted from the date of acquisition or completion of the works.

However, it will be understood that the dwelling does not lose its habitual character, despite not being occupied within the period of twelve months, in the following cases:

  • When the taxpayer dies or any other of the circumstances mentioned in number 1 above occur (marriage celebration, marital separation, job , ) that prevent the occupation of the home.

  • When the housing is unsuitable due to the disability suffered by the taxpayer, his/her spouse or relatives, in a direct or collateral line, consanguineous or by affinity, up to the third degree inclusive, who live with him/her.

  • When the taxpayer enjoys a habitual residence due to position or employment and the acquired residence is not used. In this case, the twelve-month period shall start to run from the date of termination of the relevant post or employment.

When any of the circumstances indicated in this number or the previous one occur, determining the change of address or preventing the occupation of the home, the deduction will be applied until the moment in which said circumstances occur. As an exception, when the taxpayer enjoys a habitual residence due to position or employment, deductions may continue to be made for this concept as long as this circumstance is maintained and the residence is not used.

3. Concepts that are considered habitual residence, for the purposes of the deduction

  • Annexes or any other element that does not constitute the actual dwelling, such as gardens, parks, swimming pools and sports facilities, provided that they are acquired together with the dwelling.

  • Parking spaces purchased jointly with this one, with a maximum of two . For the purposes of the deduction, parking spaces that meet the following requirements are deemed to be acquired with the home:

    1. That they are located in the same building or real estate complex and are delivered at the same time.

    2. That its transmission is carried out in the same act, even if it is in a different document.

    3. That they are used or are available to be used by the purchaser, that is, that their use is not transferred to third parties.