For the purchase of new construction property for primary residence

Regulations: Fifth transitional provision Text consolidated of the legal provisions of the Community of Castile and Leon on own and transferred taxes, approved by Legislative Decree 1/2008, of September 25

Amount and requirements for applying the deduction

7.5 percent of the amounts paid during the year 2023 for the acquisition of the home that will constitute your habitual residence, provided that the following requirements are met simultaneously:

1. That the taxpayer has his habitual residence in the Community of Castilla y León .

2. Let it be your first home .

   The taxpayer is considered to have acquired his or her first home when he or she does not have, nor has he or she had, any right of full ownership equal to or greater than 50% over another home.

3. That the property is located in Castilla y León .

4. That it is newly built dwelling .

   New construction dwellings will be considered to be those located in buildings for which the visa for the new construction execution project referred to in article 2.a) of Royal Decree 1000/2010, of August 5, on mandatory professional approval, or the regulation that replaces it, has been obtained between September 1, 2011 and December 31, 2012.

Deduction base

• The basis of this deduction will consist of:

  • The amounts paid for the acquisition, including the expenses incurred that have been borne by the purchaser.

  • In the case of external financing, the amortization, the interest, the cost of the instruments for hedging the variable interest rate risk of mortgage loans regulated in article nineteen of Law 36/2003, of November 11, on economic reform measures, or the law that replaces it, 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 from the application of the aforementioned instrument.

• The maximum deduction base will be 9,040 euros annually.

Note: The deduction is applicable to amounts paid both for the acquisition of the home itself and for amounts paid while the home is under construction, and is not applicable to cases of expansion or rehabilitation. Taxpayers entitled to the deduction must indicate the date of approval of the project in Annex B.4 of the declaration.

Other conditions for the application of the deduction

• When a primary residence is acquired after having benefited from this deduction for the acquisition of other previous primary residences, no deduction may be made for the acquisition 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 primary residence has generated an exempt capital gain through reinvestment, the deduction base for the acquisition 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.

Temporal scope of application of the deduction

The deduction may be applied in the tax year in which the first amount is paid for the acquisition of the home and in the four following tax years .

Loss of the right to the deduction made

When, in tax periods after the period of application, the right to the deductions made is lost, in whole or in part, the taxpayer will be obliged to add to the autonomous net quota accrued in the year in which the deduction requirements were not met, the amounts unduly deducted, plus the late payment interest referred to in article 26.6 of the LGT , or the regulation that replaces it.

In relation to the LGT see Law 58/2003, of December 17, General Tax.