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Practical manual for Income Tax 2024. Volume 2. Autonomous community deductions
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For the acquisition of habitual residence in municipalities at risk of depopulation

Regulations: Articles 10 ter and 18.2 Consolidated Text of the legal provisions of the Community of Madrid regarding taxes ceded by the State, approved by Legislative Decree 1/2010, of October 21

Amount, time scope of application and maximum limit of the deduction

  • 10% of the purchase price of homes acquired by taxpayers in municipalities in the Community of Madrid at risk of depopulation .

    Such consideration will be given to municipalities in the Community of Madrid that have a population of less than 2,500 inhabitants as of January 1 of the year prior to the year in which the deduction is due, according to the data published by the INE .

    You can consult the official population figures for Spanish municipalities in accordance with the Local Government Basic Law ( art. 17) at the following link: Madrid: Population by municipality and sex .

    The purchase price of the home ## will be considered to be the actual amount for which such purchase is made plus the inherent expenses and taxes, excluding interest, that have been paid by the taxpayer.

    Important : The basis for the deduction will consist exclusively of those amounts intended to satisfy the actual purchase price of the home, plus the expenses and taxes inherent to said acquisition, such as direct and indirect taxes, registration, notary, etc., but not those expenses generated by the application and granting of the mortgage loan that finances its acquisition, as they do not form part of the price of the home.

  • The total amount of deduction shall be prorated in tenths and shall be applied in the tax period in which the acquisition occurs and the nine subsequent periods.

    In cases where amounts are invested in several tax periods in the acquisition of a home under construction the amount of the deduction corresponding to each investment will be prorated by tenths and will be applied in the tax period in which said investment is made and the following nine tax periods.

  • An annual maximum limit of 1,546.50 euros is established .

Requirements for applying the deduction

  • That the taxpayers are under thirty-five years of age .

  • That acquire from January 1, 2024 in a municipality of the Community of Madrid at risk of depopulation a property that will constitute their habitual residence.

    Clarifications :

    - habitual residence will be considered as one that meets the definition and requirements established in the regulations governing IRPF .

    - The deduction is also applicable in cases where amounts are invested in the acquisition of a home under construction , that is, prior to the legal acquisition of the home, provided that the investment is made from January 1, 2024.

  • That taxpayers maintain their habitual residence in said municipality and their home during the tax period in which the acquisition occurs and in the 3 following tax periods .

  • That the sum of the general tax base and the savings of the taxpayer , together with that corresponding to the rest of the members of his family unit , sum of the boxes [0435] and [0460] of the declaration, does not exceed the amount in euros resulting from multiplying by 30,930 the number of members of said family unit .

Loss of the right to deductions made

Failure to comply with any of the required requirements will result in the loss of the right to the deduction, and the regularization will be carried out in accordance with the provisions of the state regulations of IRPF .

Provided that the taxpayer has maintained their habitual residence in the municipality and their home during the tax period in which the acquisition takes place and in the following three tax periods, the deduction will be applicable pro rata by tenths in the tax period in which the acquisition (or investment) takes place and the following nine tax periods. You will not lose the right to apply the deduction if you move your residence after the last of the three tax periods mentioned. 

Compatibility

This deduction is compatible, for the same investments, with the application of the regional deductions “For change of residence to a municipality at risk of depopulation” and “For the payment of interest on loans for the purchase of housing by young people under thirty years of age”.