🏠 What Counts as a Primary Residence?

A property is considered your primary residence if you’ve lived there for at least three years. But there are exceptions:

• Moving for work or family reasons

• Living in the new home within 12 months of buying or building it

• Spending more than 183 days a year at that address

It can also apply to a garage or storage space, as long as they were purchased with the home and are in the same building.

💸 Tax Deductions for Primary Residences

If you purchased your home before 2013 and still have a mortgage, you may be eligible to deduct up to 15% of mortgage payments, up to €9,040 per year.

Have you modified your home for a disability? You could deduct up to €12,080, depending on the situation.

      Note: These benefits do not apply to homes purchased after 2013.

 

🔄 What If You Move But Keep the Old Home?

If you move and designate a new property as your primary residence, you can no longer deduct expenses from the old one—even if you're still paying the mortgage.

⚠️ Can the Tax Office Deny Deductions?

Yes. Authorities may deny deductions if they suspect the property is not your main home. They may check:

• Your official address

• Which medical center you attend

• Your utility usage

 

🏘️ Selling and Reinvesting in a New Primary Residence

Selling your home and reinvesting in another can qualify you for a reinvestment exemption—but timing is everything.

✅ To apply the exemption:

• Reinvest the gain in your new home

• Do it within 2 years of selling the previous one

• The exemption applies even if you bought the new home before selling the old one

Example: Joe bought a new home in 2023 and sold his old one in 2024, using the proceeds to reduce the new mortgage. He qualifies for the exemption.

 

📊 How Primary Residence Affects Your Tax Return (IRPF)

• Primary residence: Must be declared but does not generate income.

• Rented property: Declare rental income as capital gains.

• Vacant property: Declare imputed income as required by Spanish tax law.

 

📝 Final Thoughts

Understanding how your home qualifies as a primary residence is essential for accurate tax filing and making the most of available deductions. When in doubt, consult a professional to avoid costly mistakes.

 

📢 Additional Tip

If you took out a mortgage before 2019, you might be able to recover certain fees related to the loan. Contact our SPAD services for free assistance on how to claim these refunds.