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Practical manual for Income Tax 2021.

Investment in protected habitual residence

Amount of deduction

2 percent of the amounts paid in the tax period for the acquisition or rehabilitation of the property that constitutes or will constitute the habitual residence of the taxpayer.

Regarding the concept of habitual residence, see article 2 of Legislative Decree 1/2018. Also, please note that the concept of habitual residence established by the state regulations of Personal Income Tax in force on December 31, 2012 is discussed in the section “General conditions and requirements” of the section “Deduction for investment in habitual residence. "Transitional regime" of Chapter 16.

Specific requirements for the application of the deduction

  • That the property has the protected classification in accordance with the regulations of the Autonomous Community of Andalusia on the date of accrual of the tax (normally, December 31).

  • That the annual income of the family unit in which the taxpayer is integrated does not exceed 2.50 times the Public Indicator of Income for Multiple Effects (IPREM) in the case of protected housing under a special regime, 4 times the IPREM for protected housing under the general regime and 5.50 times the IPREM in protected housing with a limited price, in accordance with the provisions of article 15 of Decree 91/2020, of June 30, which regulates the Vive en Andalucía Plan, for housing, rehabilitation and urban regeneration of Andalusia 2020-2030 ( BOJA 03-07-2020).

    The amount of the annual IPREM for 2021 taken as a reference amounts to 6,778.80 euros, so the quantitative limit for protected housing is set at 16,947 euros (protected housing under a special regime), 27,115.22 euros (protected housing under a general regime) and 37,283.40 euros (protected housing with a limited price).

    The annual income of the family unit is considered to be the income composed of the general tax base and the savings tax base, boxes [0435] and [0460] of the declaration.

    Note: Please note that Decree 91/2020, of June 30, which regulates the Vive en Andalucía Plan, for housing, rehabilitation and urban regeneration of Andalusia 2020-2030 (BOJA 03-07-2020) repeals Decree 141/2016, of August 2, which regulates the Housing and Rehabilitation Plan of Andalusia 2016-2020, without prejudice to the provisions of the third ("Protected housing and accommodation under previous housing plans") and sixth ("Programs and regulatory bases of the Housing and Rehabilitation Plan of Andalusia 2016-2020") additional provisions in the aforementioned Decree 91/2020.

  • That the acquisition or rehabilitation of the habitual residence has begun on or after January 1, 2003. For these purposes, it will be understood that the investment in the acquisition or rehabilitation of the habitual residence begins on the date stated in the acquisition or works contract, as appropriate.