Nobody likes a sweet treat, especially if it comes in the form of savings on rent. If you have a mortgage or are thinking of buying a house and need one, it is normal to wonder if mortgages are tax deductible .
After all, all the articles and information on how to pay less income tax includes it as one of the alternatives. How much truth is there in this? A half-truth. And the fact is that today not everyone can deduct their mortgage .
Let's see below who can and under what conditions.
Who can deduct the mortgage from their income tax?
To find out if you can deduct your mortgage, you need to look at the conditions set by the Tax Agency. Specifically, there are currently three requirements to be able to deduct what you pay on your mortgage.
- That the mortgage has been used to purchase a home.
- That you purchased the house before January 1, 2013.
- Let the house be your habitual residence.
These three requirements exclude from the deduction for the purchase of a primary residence mortgage extensions to pay for renovations or mortgages to buy a beach house, for example.
We can only claim a tax deduction for the house in which we have actually lived for at least three years, the one that the Treasury calls "usual residence." What if we change the mortgage entity? In a mortgage subrogation, we can claim a tax deduction if the mortgage you are subrogating meets the requirements.
Do you have a mortgage from before 2013 and have never changed it? At Hipotecas.com we have a wide range of mortgages so you can choose the one that best suits you. And without having to take out other products. With Hipotecas.com, if you want, you only take out the mortgage.
What is the maximum amount we can deduct from our mortgage?
The deduction for the purchase of a home is not infinite. The Treasury sets limits on the amounts that can be deducted . It does not matter how much we pay on our mortgage each year or if we have decided to pay part of the loan in advance, the deduction percentage applicable to the base will normally be 15%, with a maximum limit of 9,040 euros per year. In other words, we can only deduct a maximum of 9,040 euros.
Within these amounts contributed, both the fee and the insurance contracted can be added together with the mortgage. This is the way to recognize that this type of mandatory policies are not always the best deal for us as mortgage holders.
With Hipotecas.com you don't have to worry about that. Our mortgages have never forced you to take out other products, nor do we improve the conditions for doing so. Of course, if you need it, we have different types of insurance and you can choose the one that best suits you .
How to deduct your mortgage
Those who can deduct the mortgage will have to wait to do the IRPF. When the time comes, the Hacienda's Renta Web program will inform us that we have a mortgage loan and will ask us if it is for a home purchased before 2013 that constitutes the habitual residence.
If so, you just have to tick it and the data will be transferred to your tax return draft. From there, you will only have to review the ownership percentages if you buy the property with another person and you will already be deducting the mortgage.