The taxpayer's main residence is a term that the Tax Agency defines as that residence that meets the requirements shown below:
That the home constitutes the habitual residence for a period of at least 3 years.
Similarly, the home continues to have a "usual" character when, despite the fact that the term has not fully elapsed, the unfortunate death of the taxpayer occurs or circumstances occur that necessarily require a change of address, such as job transfer , obtaining the first job, change of employment, marriage, marital separation, etc.
That the dwelling be occupied within a period of 12 months, counting from the date of acquisition of the property or completion of construction.
The home will not lose its habitual character in the following situations:
In the event that the taxpayer dies or when circumstances occur that prevent the occupation of the property.
If, for employment reasons, the taxpayer enjoys a habitual residence and the acquired dwelling is not used. When the above exceptions are applicable, the deduction that will be made for the acquisition of the property will be started at the time that the specific circumstances arise so that a change of housing is required or prevent the occupation of this in some way.
In the event that there is a plurality of dwellings, the one in which the taxpayer resides for a period greater than 183 days a year will be defined as habitual .
It is considered that a taxpayer according to what the personal income tax establishes, will officially have their habitual residence in Spain when they incur this circumstance, which are shown below:
That it is established for more than 183 days, of a calendar year, in Spanish territory, it should be noted that it is not necessary that the 183 days be completed consecutively, this means that they can be alternated without inconvenience, as long as they are computed independently on an annual basis.
For the computation and recording of the period that they remained in Spanish territory, those temporary stays in Spain that have their origin in obligations established by humanitarian or social collaboration agreements, free of charge, with the Spanish Public Administrations will not be counted.
For the territories that are classified as tax havens, the Tax Administration will have the ability to demand proof of permanence in them for the same 183 days of the year.
La deduction by acquisition
In terms of the main residence for personal income tax purposes, it is one of the most important tax benefits that a family can take advantage of, although if the property was purchased from January 2013 onwards the advantages change.
Rent News
Not only can this transaction be formalized on paper, it can also be obtained with the Renta WEB application, since the legislative changes of the tax reform have taken shape and complete structuring for the presentation of the return. That with it we will pay less, obviously not in all cases equally, because despite the fact that some rates have been lowered and improved, some minimum requirements. Many deductions have also been modified that sometimes have a significant tax impact.
Changes made to pay more
This year, the general reduction of €2.652, obtained from employment income regardless of the net positive balance, and any equivalent amount of other income received, was eliminated. To replace this, a deductible expense of €2.000 was approved, designated as "other expenses." These costs can be offset or waived in two specific cases: the first is when, unfortunately, you are unemployed and find a job that requires you to move, increasing these costs by €2.000 per year.
The second supposed case is when an active worker with a disability will increase the amount from 3.500 euros to 7.750 euros per year in the case of active workers, according to their degree of disability.
The dividend exemption has been eliminated . Previously, dividends were completely exempt from the €1.500 annual limit, as were all profit distributions from holding shares in any entity. This exemption was abolished in 2015. Dividends are now subject to withholding tax when received, meaning that while in previous years these advance payments were often refunded, this is no longer the case.
All positive returns that are obtained in kind are taxable, with only two exceptions: the amounts allocated to staff training and insurance for civil liability in the professional work of a worker.
In addition, the possibilities for deductions through pension plans have been reduced in recent years, as the limits imposed are now less than €8.000 per year for all taxpayers in general. The limit has been modified from €10.000 to €12.500 for those over 50.
The taxation of rental income has also worsened, both for landlords and tenants. For landlords, a one-time 60% reduction is established for rental income. For tenants, the rental deduction will be lost for all signed contracts, just as with property purchases; this previously advantageous tax relief is lost.
Changes made to pay less
The main improvement, in addition to the reduction in tax rates , is the increase in the minimum taxable income, which has risen from €5.150 to €5.550. Furthermore, these amounts increase based on the taxpayer's age. Thus, when a taxpayer reaches the age of 65, the minimum taxable income will increase by €1.150 per year.
When the taxpayer has reached an age greater than 75 years, the amount of the minimum will amount to 1.400 euros per year. Going from 7.191 to 8.100 euros with the reform.
The minimum allowance for lineage or descendants also increased . For the first child, it rose from just €1.836 to €2.400. For the second child, it increased from €2.040 to €2.700; for the third child, from €3.672 to €4.000; and for the fourth and subsequent children, from €4.182 to €4.500. When the supposed descendant is under three years old, the amount will be increased by €2.800 per year.
Modalities to make the deduction for the investment in the habitual residence
- Construction of the habitual residence: all those expenses that come from the execution of the works or amounts delivered to the architect, establishing a maximum term of 4 years from when the investment is made.
- Acquisition or remodeling of the main residence: home ownership.
- Works or adaptation for people with disabilities, with a limit imposed of 12.080 euros per year. In this particular case, 20% of the cost can be deducted, which is divided into a state and regional part.
- Extension of the habitual residence: increase of the permanently built area.
- Investment in account of the habitual residence, as long as this investment is destined to the first acquisition or remodeling of the house. provided that the investment has been made for a maximum term of 4 years.
Although the deduction for primary residences was eliminated on January 1, 2013 , many taxpayers still benefit from it. These are individuals who acquired their primary residence before January 2013. From that date, a temporary system, regulated by the eighteenth transitional provision of the Personal Income Tax Law, was established, allowing taxpayers to continue enjoying the various types of deductions under the same conditions and terms as on December 31, 2012.
The transitional regime to whom it applied
After January 2013, only the following taxpayers were entitled to apply the deduction for investment in their home for the amounts paid during the period in question:
- All those taxpayers who have acquired the habitual residence or delegated amounts for the construction of this, prior to January 1, 2013.
- Those taxpayers who in some way had delegated amounts prior to January 1, 2013 for remodeling or expansion works of the property, as long as the works have been completed before January 1, 2017.
- Taxpayers who delegate amounts to carry out works to adapt the home of a person with a disability, as in the previous case that they have prior to January 1, 2013, and as long as the aforementioned works are concluded before January 1, 2017.
In order to successfully apply the transitional regime for the deduction, all taxpayers who have applied the deduction for said dwelling in 2012 or other previous years are asked, except in the situation that they have not been able to apply it to this day, because the amount that has been invested in it, most likely has not exceeded the amount exempt for reinvestment.