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

Due to the increase in the costs of external financing for investment in primary housing derived from the rise in interest rates

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

Amount and maximum limit of the deduction

  • The amount of the deduction will be the result of applying the percentage of 25 percent on the excess corresponding to the interest paid in the tax period , according to the specific conditions of the mortgage loan, on the interest that would have been paid if the aforementioned conditions had been applied in that fiscal year the Euribor corresponding to the month of December 2022 .

    This excess must be calculated by comparing month by month the interest actually paid would have been paid by applying the Euribor corresponding to the month of December 2022 to the loan conditions, that is, applying said Euribor plus the spread established in the conditions.

    If, due to the review or update of the interest rate throughout the year, there are months in the tax period in which the excess of interest paid does not occur with respect to that which would have been paid by applying the Euribor of December 2022 plus the agreed differential, the deduction will not be allowed for those months.

  • The maximum limit of the deduction is 300 euros per year, both for individual and joint taxation.

Requirements for applying the deduction

  • That taxpayers pay sums in the form of interest arising from a mortgage loan taken out for the acquisition of the habitual residence.

    It will be considered habitual residence which complies with the definition and requirements established in the Twenty-third Additional Provision of the Law of PIT and in its implementing regulations.

  • That the purchase price of the home , without considering the expenses and taxes inherent to the acquisition, is equal to or less than 390,000.00 euros.

  • That the mortgage loan has been arranged with a financial institution at variable interest rate and made before the start of the tax period .

  • That at the time of applying deduction the property continues to have the status of habitual residence .

  • 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.

Incompatibility

This deduction is incompatible with the application of the regional deduction "For the payment of interest on loans for the purchase of housing by young people under thirty years of age."

The incompatibility falls on each taxpayer , regardless of the taxation method chosen.