The tax deduction for investment in a primary residence remains in effect for those who purchased their home before 2013 and were already claiming it. This incentive allows for a maximum annual reduction of 1.356 euros en the personal income taxprovided that all the conditions required by the transitional regulations are met.
A recent ruling by the Central Economic-Administrative Court (TEAC) broadens the scope of this benefit: in addition to the usual fees, the following can also be deducted: mortgage loan cancellation carried out with part of the money obtained from selling the home, provided that it is the main residence and the deduction has been applied in previous years.
What is a deduction and what is its limit?
The general rule of transitional regime It is clear: one can deduce the 15% of the amounts paid for the mortgage on the home (principal and interest), with a maximum base of 9.040 euros by declarant and year.
Thus, the annual limit achievable per taxpayer amounts to 1.356 Eurosprovided that the computable investment reaches the base limit indicated in the IRPF declaration.
Requirements to be able to apply it
To qualify for the transitional regime, it is essential to meet several conditions that the Tax Agency strictly verifies, including those related to the acquisition date and the use of the property.
- Purchase prior to January 1, 2013Subsequent acquisitions do not entitle you to this deduction.
- Habitual residence: effective and permanent residence for a continuous period of at least three years.
- Previous application: having enjoyed the deduction in previous years under the current regulations.
- Destination of payments: mortgage payments (principal and interest) and, according to the new TEAC criteria, cancellation of the loan with the money from the sale.
Change of criteria by the TEAC and the role of the AEAT
Until now, the practice of the Administration was to allow deductions only for the amounts paid until the day before to the transfer of the property, excluding the cancellation of the loan with the amount obtained from the sale.
With the TEAC resolution, it is recognized that the purpose of this cancellation is identical to that of ordinary fees: it is about to pay off the mortgage on the main residenceTherefore, it deserves the same tax treatment under the transitional regime.
Key dates and reviewable exercises
The resolution is from October 2025 and allows for the review of declarations not prescribedFor practical purposes, corrections to the years can be requested. 2021, 2022, 2023 and 2024provided that the requirements are met.
It is worth remembering that the right to request a refund generally expires after four yearsTherefore, it is essential to check the filing dates for each tax return to avoid missing the deadline.
What is meant by main residence
The AEAT considers Habitual housing the taxpayer's residence effectively and permanently occupied for a minimum of three years, except for justified reasons that require leaving the property earlier.
Furthermore, the move-in must take place within a certain period. not exceeding 12 months from the time of purchase or from the completion of the construction or renovation works, so that the property retains its status as a habitual residence.
Illustrative example of the change
A taxpayer sold his main residence in June and allocated 10.202 Euros of the price to settle the outstanding balance of his mortgage; in his personal income tax return he declared the maximum deduction, but the Tax Office only accepted the installments up to the month prior to the sale.
According to the TEAC's criteria, this cancellation amount is added to the deductible investment, potentially increasing the annual deduction to limit of 1.356 euros if the maximum base of 9.040 euros is reached.
How to request a correction from the Tax Office
If you sold your main residence and used part of the price to pay off the mortgage, check if you meet the three key requirements (purchase before 2013, Habitual housing and deduction applied at the time) and recalculate your income.
- Review 2021-2024Check if the Spanish Tax Agency (AEAT) excluded the loan cancellation and calculate the correct deduction.
- Request for rectification: submits a written request for rectification and return of undue payments, citing the TEAC's criteria.
- Documentation: attach mortgage receipts, bank statements and deeds that prove the habitual use and the date of acquisition.
- Online or in personThe procedure can be done at the AEAT headquarters or at offices, by appointment.
Amounts, limits and practical calculation
The temporary deduction is based on a fixed percentage of 15% on the amount paid for the mortgage (principal plus interest), with an annual base cap of 9.040 Euros per taxpayer.
If you add to the ordinary fees the amount spent on cancel the loan With the money from the sale, you can optimize the tax base up to that maximum and, if applicable, achieve the deduction of 1.356 Euros.
How many people could benefit
Estimates suggest that more than 3,5 million Many taxpayers continue to apply this transitional regime, primarily households with mortgages on homes acquired before 2013.
The change in interpretation can result in significant returns, which in some cases could exceed 1.000 Eurosprovided that the requirements are met and the rectification is requested within the deadline.
Those who bought before 2013 and were already claiming deductions can boost their tax savings: with the inclusion of the mortgage cancellation after saleThe computable amounts are expanded and it is made easier to reach the annual maximum of 1.356 euros, in addition to opening the door to recovering income in recent years.
