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

For the acquisition of a habitual residence due to the birth or adoption of children

Regulations: Articles 13 and 18.2 Revised Text of the legal provisions of the Community of Madrid on taxes transferred by the State, approved by Legislative Decree 1/2010, of October 21

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

  • Total amount: 10 percent of the purchase price of homes acquired by taxpayers as a consequence of the birth or adoption of children .

    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.

  • Time frame and method of applying said amount: The total amount of the deduction will be prorated in tenths and will be applied in the tax period in which the acquisition occurs and the following nine.

    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.

  • Annual maximum limit: 1,546.50 euros, both in individual taxation and in joint taxation.

    Note: The amount of this deduction will be prorated in tenths and will be applied in the tax period in which the acquisition takes place and the following nine, without the applicable annual deduction being able to exceed 1,546.50 euros.

Requirements for applying the deduction

  • That the acquired home constitutes or will constitute the habitual residence of the taxpayer's family unit.

    For this purpose, it will be considered habitual residence which complies with the definition and requirements established in the Twenty-third Additional Provision of the Law of PITand in its implementing regulations, as amended since January 1, 2013.

  • That the acquisition of the home takes place from January 1, 2023 .

    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, 2023.

  • That the sum of the general tax base and the taxpayer's savings, together with that corresponding to the rest of the members of his family unit , sum of 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 either, in their case, the investment of quantities in the acquisition of a dwelling Under construction, as in each of the following nine exercises in which the deduction is applicable.

    He right to apply the deduction It is generated in the tax period in which the acquisition of the property occurs. and this requires compliance with the limit of the taxable bases of each of the members of the taxpayer's family unit integrated into it, without prejudice to the fact that, in any of the following nine tax periods in which its amount must be prorated, the deduction may or may not be applicable depending on compliance with said limit in each year.

    Therefore, if the income limit has been exceeded in the year of acquisition of the property, the deduction will not be transferable to the following nine tax periods.

  • The home must also be acquired within the following three years , counted from date to date, from the date of the birth or adoption of a child of the taxpayer for which he or she is entitled to apply the minimum for descendants in the year in which said acquisition takes place and must be actually inhabited within twelve months of said acquisition.

    In cases where amounts are invested in the acquisition of the home under construction , the deduction will be applied prior to the legal acquisition of the home provided that the investment is made from the birth or adoption of the children and during the following three years, counted from date to date, from the date of the birth or adoption.

Loss of the right to deduct

There are two situations to be distinguished.

  • Loss of the right to the deduction that remains to be applied within the ten-year period

    If taxpayer transfers property within the period between the year of acquisition and the following nine years will lose the right to the remaining deduction in the tax period in which said transfer occurs and the following ones.

    The same will happen in the tax period in which the child born or adopted who gives rise to the deduction ceases to be part of the taxpayer's family unit.

  • Loss of the right to deductions made

    If the housing It is not actually inhabited within twelve months since its acquisition or construction or not actually inhabited for a minimum continuous period of three years, unless the circumstances indicated in the Twenty-third Additional Provision of the Law of the PIT, the acquirer will lose the right to the deduction, proceeding to regularization in accordance with the provisions of the state regulations of the PIT.

    Regarding the circumstances that necessarily require a change of address, see the twenty-third Additional Provision of the Law of PITwhich establishes the concept of habitual residence.

Incompatibility

The present deduction results incompatible, for the same investments, with the application of the regional deduction "For the acquisition of a primary residence in municipalities at risk of depopulation".