That the Law requires 3 years of residence in the same house to be considered habitual residence does not mean that we cannot degrade mortgage payments until the third year. From the first payment in concept of acquisition we can apply the deduction.
The importance of the three years transcends when we want to sell the house before this deadline. If we do, we will not be able to benefit from the exemption for reinvestment in habitual housing, since it will not be considered that we have sold a habitual residence. And this would cause us a serious fiscal breakdown, since for the benefit of the sale we should pay taxes, despite acquiring a new house.
What happens if I have asked for money for other purposes?
Sometimes a mortgage is requested that finances 100% plus expenses and, in addition, they grant us extra money to buy a car or furnish the apartment, for example (usually in exchange for providing a second mortgage guarantee). Or a mortgage loan is unified that was destined to acquire the habitual house with other debts.
In these cases, we can only deduct in the personal income tax the proportional part of the mortgage payments that are destined to the acquisition of habitual housing, not the total. Regardless of what the draft says, we should know that it has flaws in many cases; and it is useless to claim that the draft was confirmed, since if it was not correct, the Treasury will also sanction us. For this reason it is always better to pay the fees of a tax advisor, who will avoid further problems.
What is the amount of the deduction?
There is a deductible limit of 15% on 9,040 euros, which limits the maximum deduction in 2018 to 1,356 euros.
When the mortgage deduction was eliminated
In the tax reform of 2015 there was bad news for the mortgaged, explained the tax expert Good Finance . It is true that the tax rates were reduced and family minimums were raised by ascendants and descendants, including new aid for large families and disabled dependents, but there was also a worsening at certain points, for many very important families.
Specifically in housing , after the disappearance of the deduction for the purchase of habitual housing for all those made after 12/31/2012, in 2015 the taxation of the rent was worsened, both for lessor and lessee. For the owner, a single reduction of 60% of the net return derived from the rental of real estate for housing is set. Until last year there was a 100% reduction when it was for children under 30. For the tenant, the deduction for rent is lost for all contracts signed as of January 1, 2015, that is, as the purchase of housing is lost this relief being maintained for the old contracts.
Apply for a mortgage loan, which does not deduct
Unfortunately for those who buy a home with mortgage financing at this time, mortgages no longer deduct in the IRPF and do not seem to do so in the future.
Although 2019 is a bad year in terms of taxation of the purchase of the home, low property prices can be a positive factor when deciding on the acquisition, provided we get a bank financing in good condition. We invite you to request information without commitment about your case by clicking on the following button: