10.12.19. Due to the increase in the costs of external financing for investment in primary housing derived from the rise in interest rates

Amount

Taxpayers who pay amounts in the form of interest derived from a mortgage loan taken out for the purchase of their primary residence may apply a deduction of % on the excess corresponding to the interest paid in the tax period, according to the specific conditions of the mortgage loan, over the interest that would have been paid in the tax period if the corresponding to the month of December 2022 had been applied to the aforementioned conditions in that fiscal year.

The deduction limit is 300 euros per year for both individual and joint taxation.

Requirements and conditions

• That the home meets the requirements set forth in the Personal Income Tax Law (LIRPF) to be considered a primary residence.

• The acquisition of the primary residence must be made through a mortgage loan arranged with a financial institution at a variable interest rate and must have been made before the start of the tax period.

• That at the time the deduction is applied, the property is still considered the taxpayer's primary residence.

• That the purchase price, excluding expenses and taxes inherent to the acquisition, is equal to or less than 390,000.00 euros.

• That the taxpayer's taxable income (the sum of the general tax base and the savings taxable income) and that of the other members of the family unit does not exceed the amount resulting from multiplying 30,930 euros by the number of members in the family unit.

  If it is a conjugal family unit (as regulated in article 82.1.1 of the Personal Income Tax Law), all members of the family unit integrated into it will be counted, regardless of whether or not they opt for the joint tax regime and whether or not they are required to file a return.

  If the family unit is single-parent or non-conjugal, all members of the family unit that theoretically correspond to each taxpayer must be taken into account, in accordance with the provisions of article 82.1.2 of the Personal Income Tax Law, regardless of whether or not they choose to pay taxes under the joint tax regime and whether or not they are required to file a return.

Incompatibility

This deduction is incompatible for each taxpayer with the deduction "For the payment of interest on loans for the purchase of housing by young people under 30 years of age."

Completion

If the sum of the general and savings tax bases of all members of the family unit to which the taxpayer may belong exceeds the result of multiplying 30,930 euros by their number, they are not entitled to the deduction, and therefore should not enter their data in this window.

Otherwise, it will state:

• The amount paid with the right to deduction.

• The number of members in the family unit.