'Second chance' for homebuyers to apply for income tax deduction
Saturday, June 8, 2024 @ 12:31 PM
RESIDENTS in Spain who bought a new home before 2013 may still be able to offset the purchase against their annual tax return, if they have not done so already.
If you bought your main home before January 1, 2013 and did not offset the purchase against your annual tax bill, you may still be able to do so (photo by Spanish consumer organisation OCU)
Until that year, buying a main residence in Spain gave the owner tax deductions, but the then Partido Popular (PP) government scrapped this benefit, at a time when taxes in general had sharply risen to aid a flagging economy.
Now, over a decade on, the Central Financial and Contentious Court (Tribunal Económico-Administrativo Central, or TEAC) has created new windows to enable some of those who missed out to backdate their claims.
Anyone who had already applied a tax deduction in their annual return (Declaración de la Renta) in 2012 or before in relation to a main residential property purchase, who had bought their home prior to January 1, 2013, or carried out renovation works on it before that date, would have benefited from the now-defunct reduction scheme.
But some did not apply at all – those who did not have any taxable income, meaning they did not make a declaration, and those who were not obliged to file a tax return and opted not to do so, would not have offset their home purchase.
Read more at thinkSPAIN.com