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Practical manual for Income Tax 2020.

Who is entitled to this deduction?

Taxpayers who meet the following requirements will be entitled to apply the deduction regime for investment in habitual residence for the amounts paid in the 2020 financial year:

  1. In the case of construction of a primary residence, when the taxpayer has paid amounts prior to 1 January 2013 and has therefore applied the deduction, unless the provisions of article 68.1.2 of the Law in its version in force on 31 December 2012 have been applicable.

    It is not necessary for the works to have started before that date, as long as some disbursement has been made for this purpose.

    Note: The application of the transitional regime does not end with the completion of the works, but rather continues with respect to the amounts that the taxpayer continues to pay once the construction has been completed for the acquisition of the same, provided that the requirements of completion on time, occupation and effective and permanent residence are met.

  2. In the case of extension of the habitual residence, when amounts have been paid for this concept before January 1, 2013, provided that the works were completed before January 1, 2017.