The Importance of Real Estate in Spain
The purchase of a home is one of the most significant moments in the lives of many Spaniards, representing a great triumph in the financial field. In this context, mortgages play a fundamental role, facilitating access to property. A few years ago, acquiring a home through a mortgage loan carried tax advantages that are now becoming scarcer.
Deduction for Habitual Residence: What is it and Who Can Enjoy it?
The deduction for habitual residence is a mechanism that allows taxpayers to deduct part of the interest paid on their mortgage during the income statement. This advantage has been fundamental for many families, helping them to lighten their tax burden and improve their financial situation.
Requirements to Access the Deduction
To enjoy this benefit, it is essential to have acquired the home before January 1, 2013. Those who signed their mortgage loan before that date can continue to take advantage of this deduction, as long as the home is the your usual residence.
Necessary Conditions for the Deduction
In addition to the date of acquisition, there are other conditions that must be met in order to apply the deduction:
Property of the Housing
The home must be the taxpayer’s main residence, that is, where he resides permanently.
Necessary Documentation
It is essential to have the documentation that proves both the purchase of the home and the constitution of the loan. This includes the deed of sale, mortgage deed and proof of payment.
Bank Certificate
A certificate issued by the bank detailing the payments made during the year and the total amount of interest is also an indispensable requirement.
Situation for Mortgages Signed After 2013
Those who formalized their mortgage after January 1, 2013 will not be able to access this tax deduction, as it was eliminated with the tax reform of that year. However, there are still other tax benefits available which may vary according to the autonomous community and the economic situation of the taxpayer.
Final Reflections on the Mortgage Deduction
If you’re among the lucky few who were able to take out a mortgage before 2013, it’s important to review the requirements and have your paperwork ready to take advantage of the regular homestead deduction. Knowing about these benefits can make all the difference in managing family finances.