How to request a refund of personal income tax if you bought your house before 2013, even if you have already sold it

Good news for those who bought their primary home before January 1, 2013: The Tax Agency has made the criteria for applying the deduction for investment in habitual residence more flexible, a tax advantage that many believed was lost.

Until now, taxpayers who sold their home or paid off the mortgage with money from the sale They had lost the opportunity to benefit from this deduction. However, a recent resolution by the Central Economic-Administrative Court (TEAC) opens the door for these amounts to once again be considered deductible, offering the possibility of recovering money that until now seemed out of reach.

What changes now?

The change focuses on the concept of investment in primary housing and how the cancellation of the mortgage is interpreted. Previously, the Treasury considered that if the capital used to amortize the mortgage came from the sale of the home, the deduction could not be applied.

With the new interpretation, Taxpayers who used these funds to pay their mortgage loan can include them as part of the deductible investment. This means that many people who had lost the right to deduct part of their mortgage payments can now rectify their personal income tax return and obtain significant refunds.

Who can benefit?

The beneficiaries of this measure are mainly those who acquired their home before 2013 and are still within the transitional regime of the deduction for investment in habitual residence. Also includes those who sold the home or partially paid off the mortgage without being able to deduct all payments made.

In practical terms, it is taxpayers with personal income tax years corresponding to 2021, 2022, 2023 and 2024 that have not yet expired, who may present corrective declarations to claim tax refunds.

How much savings does this measure represent?

The tax savings can be notable. According to the current regime, taxpayers They could deduct up to 15% of the amounts paid annually for your habitual residence, including both capital and interest, with a maximum limit of €9,040 on an annual basis.

This represents a tax benefit that can reach up to €1,356 per year, and with the new TEAC criteria, the amounts intended to amortize the mortgage with money from the sale can now be added to that deduction. Consequently, those who previously could only partially deduct their payments could now see the deductible base and, therefore, the tax refund increased.

How to request a refund?

To take advantage of this opportunity, it is essential to review the particular situation of each taxpayer. The first step is to confirm that the home was acquired before 2013 and that the taxpayer is within the transitional regime.

Subsequently, it is necessary compile all the documentation that justifies both the purchase of the home such as the amortization of the mortgage and, where appropriate, the sale of the property. This includes deeds, amortization certificates, proof of mortgage payment and personal income tax returns for the corresponding years. With these documents, you can submit a corrective declaration and request a tax refund.