A new criterion from the Central Economic-Administrative Court has changed the taxation of those who still benefit from the transitional regime of the tax deduction for investment in main residence. Hereinafter, the cancellation of the loan The money obtained from selling the house can also be included in the deductible base of the IRPF (Personal Income Tax).
The decision, published in October, unifies the legal doctrine and overturns the previous, stricter interpretation of the Tax Agency. For many households with old mortgagesThis adjustment can result in refunds of up to 1.356 euros per year, always within the legal limits and requirements.
What exactly changes
Until now, the Treasury maintained that the deduction for main residence was cut off on the same day as the sale and that the final amortization made with that money It was not deductibleThe TEAC corrects that argument and considers the origin of the funds irrelevant when their destination is to cancel the mortgage on the main residence.
The court reasons that money is fungible: whether the cancellation is made with one's own savings from the previous day or with the proceeds of the transfer, the tax treatment must be the same and, therefore, capital amortization can be included in the deduction base if the requirements of the transitional regime are met.
The deduction in force under this scheme allows a 15% reduction of the amounts paid for the purchase or financing of the main residence, with a maximum base of 9.040 euros per year, which is equivalent to a limit of 1.356 euros per year.
Illustrative example: if in the year of the sale the following have been paid 3.000 euros in installments And, in addition, €6.040 of the price has been allocated to paying off the loan, bringing the total tax base to €9.040. Previously, the deduction was only allowed on €3.000; with the new criteria, the deduction is reached. maximum of 1.356 euros.
Who is eligible?
The scope of the change affects taxpayers who were already applying the deduction under the transitional regime and who meet the legal conditions. Specifically, it is essential that the dwelling was the usual residence until the transfer and that the final amortization comes from the sale and is used to pay off the loan.
- Active transitional regime: having been entitled to the deduction for main residence prior to the regulatory change.
- Proven habitual until the date of sale, fulfilling the required residence and occupancy periods.
- Destination of fundsThe proceeds from the sale must be used to pay off outstanding principal and interest as appropriate.
- Respect for boundaries: maximum annual base of 9.040 euros per taxpayer and percentage of 15%.
How to claim and deadlines
The new criterion allows for the review of non-prescribed tax years through amended returns. In practice, taxpayers can request a refund if they did not include the relevant amount in their tax base at the time of the return. final amortization financed with the sale or if it was unduly restricted.
The tax years that can still be amended are those between 2021 and 2024, provided the requirements of the transitional regime are met. It is crucial to save and submit the supporting documentation that proves the transaction.
- Sell ​​script and proof of the price received.
- Certificate from the financial institution with details of the loan cancellation.
- Fee receipts, interest and expenses related to the loan in the affected fiscal year.
- Habituality tests up to the date of transmission (registration, supplies, official communications, etc.).
The correction is submitted through the Tax Agency's electronic office, choosing the option for requesting a refund for undue payments or a corrective declaration, and incorporating all the evidence payment and cancellation.
Other points clarified by recent doctrine
In addition to acknowledging the cancellation of the sale with funds, recent administrative responses indicate that certain mortgage-related expenses They can be included in the deductible base under the transitional regime, provided they are directly related to financing.
It has also been specified that a change of bank by subrogation or novation does not eliminate the right to deduct when the rest of the conditions are maintained, and that the expenses associated with that operation (notary, registration or commissions) may to be reduced at the base if they are part of the financing of the main residence.
The essential condition remains that the property retains its status as the taxpayer's main residence until its transfer and that the taxpayer claimed the deduction at the time under the transitional regime; otherwise, The benefit does not apply..
Impact and who benefits
In the last year with complete statistics, more than 2,7 million taxpayers applied this temporary deduction, with an aggregate cost to the public coffers of around 2.000 million eurosThe correction of the criteria may increase the number of beneficiaries who recover amounts not previously deducted.
The ruling unifies legal doctrine at the state level and provides legal certainty, preventing disparate interpretations. For those affected, it means an additional margin of savings in a context of high interest rates and still long mortgage terms.
Those planning to sell their main residence with entitlement to the transitional regime should, with advice, assess the best time for cancellation and carefully document cash flows in order to optimize the deduction and avoid incidents.
With this change, the tax authorities acknowledge that the destination of the money matters more than its origin, aligning the practice with the purpose of the primary residence deduction. For thousands of taxpayers, this opens a realistic path to regularize 2021-2024 and recover amounts that could not be computed, always within the limits and requirements mentioned.
