An income tax deduction is applied to investment in usual residence as follows
- Deduction base
The deduction is applied to the yearly sum used to amortise the principal, pay interests and cover the expenses involved in financing your usual residence, within limits as explained later.
- Deduction rate
The deduction is 15% of the deduction base and consists of a state deduction of 7.5% and an autonomous community deduction of 7.5% (special percentages have been approved in some Autonomous Communities).
For residents in Navarra, the deduction percentages depend on the size of the family unit (15%, 18% or 30%). Higher deduction rates (20%, 23% or 35%) are also available for the purchase of subsidised homes, fixed-price homes and limited free-market price homes (Vivienda de Protección Oficial, Vivienda de Precio Tasado and Vivienda de Precio Libre Limitado) whose contracts are endorsed before 31-12-2011.
For residents in the Basque Country, the general deduction is 18%, and 23% for contributors aged under 35 or with large families.
- Annual limit on the deduction base
The deduction rates indicated are applied to the yearly sum of direct investment, amortisation, interest, other loan financing costs for the purchase or renovation of your usual residence and the yearly total of contributions to a home savings account, with the following limits:
| NAVARRA |
BASQUE COUNTRY |
REST |
- € 9,015 per individual tax return
- € 21,035 per joint tax return
|
€ 12,000 per return |
€ 9,015 per return |
- Overall limit on deduction bases
The total of investment in usual residence and contributions to home savings accounts to which tax deductions for investment in usual residence can be applied in all the tax returns presented by the taxpayer cannot exceed the following amounts
| NAVARRA |
BASQUE COUNTRY |
REST |
- € 120.000 on individual tax returns
- € 240.000 on joint tax returns
|
€ 200,000 per taxpayer |
No overall limit. |