For investment in habitual housing that is considered protected and for young people

Regulations: Articles 9 and 2 and Additional Provision first Law 5/2021, of October 20, on Assigned Taxes of the Autonomous Community of Andalusia

Amount of deduction

5% of the amounts paid in the tax period for the acquisition or rehabilitation of the property that constitutes or will constitute the habitual residence of the taxpayer.

Regarding the concept of habitual residence, see article 2 of Law 5/2021, of October 20, on Transferred Taxes of the Autonomous Community of Andalusia. Likewise, please note that the concept of habitual residence, in accordance with the first Additional Provision of the aforementioned Law 5/2021, is that established by articles 54.1 and 2 and 55.2 c) of the Personal Income Tax Regulation , in force as of December 31, 2012, which is discussed in section “ General conditions and requirements ” of the section “Deduction for investment in habitual residence. "Transitional regime" of Chapter 16.

See in "Deduction for investment in habitual residence: "Transitional regime" of Chapter 16 of this Manual, the concept of acquisition of habitual housing within the section " Acquisition, construction, rehabilitation and expansion of habitual housing ".

Keep in mind that the construction and expansion of the home are NOT assimilated to the acquisition of the home, so the amounts paid for these concepts do not give the right to make the deduction.

• Specific requirements for the application of the deduction

  • To be eligible for the deduction, one of the following conditions must be met on the date the tax is due:

    1. That the property has the protected classification in accordance with the regulations of the Autonomous Community of Andalusia

    2. That the purchaser is under 35 years of age . In the case of joint taxation, the age requirement must be met by at least one of the spouses or, where applicable, the father or mother in the case of single-parent families.

       For the concept of single-parent family, see article 4 of Law 5/2021, of October 20, on Transferred Taxes of the Autonomous Community of Andalusia.

  • That the sum of the general and savings tax bases , boxes [0435] and [0460] of the declaration, does not exceed the following amounts:

    • - 25,000 euros in individual taxation.

    • - 30,000 euros in joint taxation.

  Maximum deduction base

  • The basis for this deduction will be the amounts paid for the acquisition or renovation of the home, including the expenses incurred by the purchaser and, in the case of external financing, the amortization, the interest, the cost of the instruments to cover the variable interest rate risk of mortgage loans regulated in article nineteen of Law 36/2003, of November 11, on economic reform measures, and other expenses derived therefrom. In the event of application of the aforementioned hedging instruments, the interest paid by the taxpayer will be reduced by the amounts obtained from the application of the aforementioned instrument.

  • The maximum base of this deduction will be 9,040 euros, in accordance with the requirements and circumstances provided for in the state regulations of Personal Income Tax for the deduction for investment in habitual residence in force on December 31, 2012 .

  Other conditions for the application of the deduction

  • In the event of marital annulment, divorce or legal separation , the taxpayer may continue to apply this deduction for amounts paid in the tax period for the acquisition of what was their habitual residence during the marriage, provided that this condition continues to apply to their common children and the parent in whose company they remain.

  • When a primary residence is acquired after having benefited from the deduction for the acquisition of other previous primary residences , no deduction may be made for the acquisition or rehabilitation of the new residence as long as the amounts invested in it do not exceed those invested in the previous residences, to the extent that they were subject to deduction.

    When the sale of a habitual residence has generated an exempt capital gain due to reinvestment , the deduction base for the acquisition or rehabilitation of the new residence will be reduced by the amount of the capital gain to which the exemption for reinvestment is applied. 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 exempt capital gain from reinvestment.

  • Likewise, will be considered a rehabilitation of a habitual residence that meets the requirements and circumstances established by the state regulations of Personal Income Tax in force on December 31, 2012, specifically, the works carried out therein that meet any of the following requirements:

    1. That these are subsidized actions in the field of housing rehabilitation under the terms provided for in Royal Decree 106/2018, of March 9, which regulates the State Housing Plan 2018-2021, or the Plan that replaces it.

    2. Those whose main objective is the reconstruction of the dwelling by consolidating and treating the structures, facades or roofs and other similar works, provided that the overall cost of the rehabilitation operations exceeds 25% of the purchase price if this had been carried out during the two years immediately prior to the start of the rehabilitation works or, otherwise, the market value of the dwelling at the time of said start. For these purposes, the proportional part corresponding to the land will be deducted from the purchase price or market value of the home.