9.1.2. Construction or extension of habitual residence

The construction or expansion of a home is considered to be the acquisition of a home, in the following terms:

1. The construction of the habitual residence, when the taxpayer directly meets the costs arising from the execution of the works, or delivers amounts on account to the promoter of the works, provided that they are completed within a period not exceeding four years from the start of the investment. The deduction will only be applicable when the taxpayer has paid amounts prior to January 1, 2013.

2. The extension of a habitual residence, when there is an increase in its habitable surface area, by enclosing the uncovered part or by any other means, permanently and during all times of the year. The deduction will only be applicable when amounts have been paid for this concept before January 1, 2013, provided that, in addition, the works are completed before January 1, 2017. If this deadline is not met, the deductions made for this purpose must be regularized.

The deduction percentage applicable to the deduction base will in any case be 7.50% in the state part, and 7.50% in the regional part, that is, 15% .

The Autonomous Community of Catalonia has established in certain cases specific percentages for the autonomous section of the deduction.

Extension of the deadline due to exceptional circumstances

• Contest

  If, as a result of the competition, the developer does not complete the construction work before the four-year period has elapsed or is unable to hand over the homes within the same period, the period will be extended by another four years.

  In these cases, the period of twelve months to effectively and permanently inhabit the property will begin to run from the date of delivery.

  In order for the extension provided for in this section to take effect, the taxpayer who is required to file a tax return in the tax period in which the initial deadline was not met must attach to it both the supporting documents proving their investments in housing and any document justifying the occurrence of any of the aforementioned situations.

  In these cases, the taxpayer will not be obliged to make any payment due to failure to comply with the general four-year deadline for completion of the construction works.

• Other exceptional circumstances 

  When, due to other exceptional circumstances not attributable to the taxpayer and which entail the suspension of the works, they cannot be completed before the four-year period for completing the construction has elapsed, the taxpayer may request an extension of the period from the Administration.

  The application must be submitted to the Delegation or Administration of the State Tax Administration Agency corresponding to your tax domicile within thirty days following failure to comply with the deadline.

  The application must include both the reasons for the failure to comply with the deadline and the period of time considered necessary to complete the construction work, which may not exceed four years.

  For the purposes of the preceding paragraph, the taxpayer must provide the corresponding justification.

  In view of the documentation provided, the Delegate or Administrator of the State Tax Administration Agency will decide both on the appropriateness of the requested extension and on the extension period, which will not necessarily have to be in line with that requested by the taxpayer.

  Applications for extension that are not expressly resolved within three months may be deemed to be rejected.

  Any extension granted shall begin to run from the day immediately following the day on which the breach occurs.