The purchase of a home is one of the largest investments that families face in Spain and in the majority of houses they resort to mortgages to finance it. In these cases, their monthly expenses are significant and some mortgage holders can find economic relief by applying a certains deductions in your income tax return, which can exceed 2,700 euros.
It must be clarified that not all mortgage holders have the right to the application of said deductions for the mortgage in the Personal Income Tax, for this the Mortgages will have to be formalized before 2013. Only those prior to said date may benefit from said deduction for habitual residence.
To do this they will have to meet certain conditions as established by the Tax Agency. Holders who do so will be able to enjoy these tax advantages that in some cases reach 2,712 euros.
What does this deduction consist of and what requirements must be met?
According to experts from the Help My Cash portal, this deduction translates into a maximum of 15% of the amount allocated to the payment of the mortgage during the year, as long as it does not exceed an annual base of 9,040 euros. This means that the maximum possible savings is 1,356 euros.
If the mortgage has two owners who declare independently, the savings are multiplied, being able to reach the aforementioned 2,712 euros annually.
Now, in order to be able to deduct the mortgage in the income tax return, certain requirements must be met, detailed below:
- Formalization date: The home must have been acquired and the mortgage signed before January 1, 2013, the date on which this deduction stopped applying to new contracts.
- Previous statements: It is mandatory that the taxpayer has applied this deduction in a return prior to the 2012 tax year.
- Habitual residence: The deduction only applies if the mortgaged home constitutes the principal and permanent residence of the owner.
How to apply the deduction in the Income Tax return
If the above requirements are met, you will be able to access said tax credit that is applied in the Income Tax return each year. To do this, as explained by the aforementioned experts, when the time comes to present the declaration, it will be necessary to ensure that the box corresponding to the “Deduction for investment in habitual residence” is duly marked.
In addition, it must be verified that the amounts that have been paid for the mortgage during the fiscal year being declared are correct.
What happens if the conditions of the mortgage have been modified?
A doubt that may arise when applying this deduction is What happens if all the requirements are met, but the conditions of the mortgage have been modified?
From Help My Cash they explain that modifications to the conditions of the mortgage related to a change in interest rates or the repayment period do not affect the right to the deduction.
However, if what is modified is the outstanding capital, it will be affected. If the amount is increased, only the part corresponding to the original capital can be deducted.that is, the one that existed before the enlargement.