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Form 100. Personal Income Tax Return Declaration 2017

10.8.8. For the purchase of new construction property for primary residence

The taxpayer may deduct for five years, 7.5 percent of the amounts paid for the acquisition of the home that will constitute his habitual residence, having to simultaneously meet the following requirements :

  • That the taxpayer has his habitual residence in Castilla y León.

  • That it is your first home.

  • That the property is located in Castilla y León.

  • That it is a newly built home. Housing located in buildings for which the approval for the new construction project was obtained between September 1, 2011 and December 31, 2012 will be considered as new construction housing.

The basis for the deduction will be the amounts paid for the acquisition, including the expenses charged to the purchaser, and in the case of external financing, the amortization, the interest, the cost of the variable interest rate risk hedging instruments of the mortgage loans 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 by the application of the aforementioned instrument.

The maximum deduction base will be 9,040 euros per year.

When a primary residence is acquired after having benefited from the 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.

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

When the right to the deductions applied is lost, in whole or in part, in tax periods subsequent to the period in which they were applied, the taxpayer will be obliged to add the amounts unduly deducted, plus late payment interest, to the regional net tax rate accrued in the year in which the deduction requirements were not met.

Completion:

A window will open in which you must complete the following three fields: The total amount paid with the right to deduction must then indicate the date of the approval of the new construction project for the home, and finally, indicate the year in which the first amount was paid for the acquisition, for the purposes of calculating the deduction for the established period of 5 years.