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Practical Guide to Income Tax 2025. Part 2. Autonomous community deductions

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 cover the actual cost of acquiring the property, plus the expenses and taxes inherent to said acquisition, such as direct and indirect taxes, registration, notary fees, etcHowever, this does not include expenses related to the application for and granting of the mortgage loan that finances its acquisition, as these are not part of the price of the property.

  • 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 .

    The age requirement must be met exclusively in the tax period in which the acquisition of a property that will constitute their main residence takes place. That age requirement is not required in each of the nine subsequent years to which the application of the deduction extends.

  • 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 :

    - It will be considered habitual residencel which complies with the definition and requirements established in the regulations governing the PIT.

    - 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 .

    Rules for its application:

    • If it is a conjugal family unit (of those regulated in article 82.1.1 of the Law of PIT), the tax bases of each of the members of the family unit included in it must be added, regardless of whether or not they opt for the joint taxation regime and whether or not they are required to file a tax return.

      Thus, for each spouse, the taxable base will be that corresponding to both of them plus that of the children (minors or legally incapacitated adults subject to extended or rehabilitated parental authority), common or not, who live with the couple.

      In the case of joint taxation, the taxable base of said declaration will be the one taken into account for the purposes of the established limit.

    • If it is a single-parent or non-marital family unit, only the taxable bases of the members of the family unit that theoretically correspond to each taxpayer must be added, in accordance with the provisions of article 82.1.2 of the Law of PIT: the taxpayer himself and his children (minors or legally incapacitated adults subject to extended or rehabilitated parental authority) who live with him. And all of this, also, regardless of whether or not they choose to pay taxes under the joint tax regime and whether or not they are required to file a return. In the case of joint taxation, the taxable base of said declaration will be the one taken into account for the purposes of the established limit.

    The requirement of the taxpayer's taxable income, together with that of the other members of their family unit, must be met both in the tax period in which the acquisition of the property takes place that will constitute their main residence, as in each of the following nine exercises in which the deduction is applicable.

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 regularization will be carried out in accordance with the provisions of the state regulations. PIT.

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 and incompatibility

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”.

Additionally, the present deduction results incompatible, for the same investments, with the application of the regional tax deduction "For the acquisition of housing due to the birth or adoption of children".