10.14.3. For amounts invested in the acquisition or construction of habitual housing for young people
Young people with habitual residence in the Autonomous Community of La Rioja who acquire the home that, being located in this Autonomous Community, constitutes or will constitute their habitual residence, provided that the requirements for being entitled to the state deduction for investment in habitual housing are met, may deduct 3 percent , of the amounts invested, when the following CONDITIONS are met:
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Young people eligible for deduction are considered to be those who have not reached 36 years of age at the end of the tax period. This requirement will be controlled by the program.
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These must be amounts paid in the year for the construction, expansion, or acquisition of the home that, in addition to being located in the Autonomous Community of La Rioja, constitutes or will constitute the habitual residence of the taxpayer.
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The requirements must be met to be eligible for the state deduction for investment in the acquisition or construction of a primary residence established in Transitional Provision 18 of Personal Income Tax Law 35/2006.
Only the aforementioned taxpayers who acquired their habitual residence before January 1, 2013, or paid amounts prior to that date for its construction, will be entitled to this deduction. In the latter case, except for the exceptional extensions contemplated in the tax regulations in force on 31 December 2012, the works must be completed within four years from the start of the investment, in accordance with the deduction regime applicable in the case of construction of a primary residence. In any case, it will be necessary for the taxpayer to have applied the deduction for investment in a habitual residence in a tax period accrued before January 1, 2013, unless the provisions of article 68.1.2 of Law 35/2016 on Personal Income Tax have been applied, regarding the limits on the application of the deduction for the acquisition or rehabilitation of other previous habitual residences and for the generation of an exempt capital gain through reinvestment, which prevent the deduction for the rehabilitation of the new one from being applied as long as certain amounts detailed in said article are not exceeded.
IMPORTANT: In the event that the general taxable base subject to taxation (general taxable base less the personal and family minimum) does not exceed 18,030 euros in the case of individual taxation and 30,050 euros in the case of joint taxation, provided that the savings taxable base subject to taxation (savings taxable base less the excess of the personal and family minimum over the general taxable base) does not exceed 1,800 euros, a deduction percentage of 5 per 100 of the amounts invested may be applied. The taxable base limits will be controlled by the program.
As regards the concepts of construction, extension, habitual residence and elements that make up the basis of the deduction, as well as the verification of the financial situation at the end of the tax period, the same requirements that are generally established in the Tax Law apply.
Specifically, the deduction limits established in the state regulations governing the tax will apply in cases of acquisition of a primary residence after having enjoyed a deduction (general or regional) for other previous primary residences, and of acquisition of a primary residence after the sale of the previous primary residence with the generation of an exempt capital gain through reinvestment.
Limits on regional deductions in La Rioja
The maximum annual base of the regional deductions for the acquisition of housing and second homes in rural areas will be constituted by the amount resulting from reducing the amount of 9,040 euros by those amounts that constitute for the taxpayer the base of the deduction for investment in habitual housing contemplated in the state regulations of the tax.
For these purposes, when considering the basis for the state deduction, the amount corresponding, where applicable, to adaptation works or installations carried out by persons with disabilities referred to in article 68.1.4 of the Personal Income Tax Law will not be taken into account.
Furthermore, these regional deductions for the purchase of a home require that the verified amount of the taxpayer's assets, at the end of the tax period, exceeds the value shown by its verification at the beginning of the same, in accordance with article 70 of the Personal Income Tax Law.
Completion
The window will reflect the amounts paid by the holder of the declaration that give the right to the deduction, taking into account the limitations indicated in the deduction base section.
In the case of marriage and if the amount paid corresponds to the spouses in equal parts, 50% of the total amounts paid by both will be reflected.
VERIFICATION OF THE ASSET SITUATION (art. 70 Law)
The application of the deduction for investment in housing will require that the verified amount of the taxpayer's assets at the end of the tax period exceeds the value shown by its verification at the beginning of the same by at least the amount of the investments made, without taking into account the interest and other financing costs.
For these purposes, increases or decreases in value experienced during the tax period by assets that at the end of the period continue to form part of the taxpayer's assets will not be computed.