Mortgage expenses can be deducted in the tax return. only in certain cases, especially when the principal residence was acquired before 1 January 2013 and the right to the transitional regime is maintained. This deduction may include the amounts allocated to amortisation, interest and some expenses linked to the loan, always within a maximum deductible base and without forgetting the key nuance: not all mortgages are tax deductible.
When someone is looking for which mortgage costs are tax-deductible, two levels should be separated. The first is whether or not there is still the right to tax relief on the mortgage in the IRPF. The second is which mortgage expenses are deductible and can form part of the tax base. deduction in the tax return corresponding to the mortgage. In practice, the key is usually the date of purchase, whether it is a primary residence and whether the so-called 2013 mortgage deduction or transitional regime is still applicable.
Is the mortgage tax deductible?
Yes, but only in certain cases. The mortgage can be included in the rent when it concerns the purchase of the main residence prior to 1 January 2013 and the right to the transitional regime is preserved. It should therefore not be presented as a general advantage for any mortgagee.
In general terms, income tax relief for mortgages is still possible for those who bought their primary residence before 1 January 2013 and were already applying, or could apply, the deduction for investment in primary residence under the previous regulations. Since that date, the state deduction was abolished for new acquisitions, although there may be regional particularities or personal situations that should be reviewed.
Put simply: the mortgage is tax-deductible only in specific cases, not for the mere fact of continuing to pay dues.
Who can deduct the mortgage?
It is not enough to have an active mortgage. In order to be able to apply the deduction, several conditions must be met at the same time.
| Situation | Is the mortgage tax-deductible? |
|---|---|
| Main residence purchased before 2013 | Yes |
| Main residence purchased after 2013 | No |
| Second home | No |
Is the mortgage tax-deductible?
Main residence purchased before 2013YesMain residence purchased after 2013NoSecond residenceNo
Yes, you can deduct
- Those who acquired their main residence before 1 January 2013.
- Who retains the right to the transitional regime.
- Who has actually borne the expense and can prove it.
- In some special cases, who continues to pay for the dwelling that was the habitual residence during the marriage after annulment, separation or divorce, if that dwelling remains the habitual residence for the common children and the other parent.
Cannot deduct
- Whoever signed the purchase and the mortgage from 1 January 2013, unless we are talking about a different deduction at regional level.
- Whoever uses the loan for a second home or a property that is not their main residence.
- Who cannot prove that they actually bear the payments.
In addition, in order for the home to retain the status of permanent residence, the rule requires that, in general, it must be the taxpayer's residence for at least three years and that it must be effectively occupied within twelve months of the acquisition or completion of the works.
How much tax relief do you get on your mortgage?
In general, the maximum deduction base is 9,040 euros per year and the applicable percentage is 15%, so that the maximum indicative saving can reach 1,356 euros per year.
| Concept | Amount |
|---|---|
| Maximum annual basis | 9.040€ |
| Percentage of deduction | 15% |
| Indicative maximum savings | 1.356€ |
However, not everyone reaches this maximum saving. The deduction is calculated on the amounts actually paid during the year that can be included in the deductible base. Therefore, only those who reach the annual limit of 9,040 euros will be able to apply the maximum deduction of 1,356 euros.
Which mortgage expenses are tax-deductible?
Where there is a right to deduction, the base may include not only interest but also other amounts related to the financed purchase of the main residence.
The legal reference refers to amounts paid for acquisition or refurbishment, the costs borne by the purchaser and, where there is third-party financing, the amortisation, interest and other costs derived from the financing.
| Expenditure | Is it tax-deductible? | In which case | Observation |
|---|---|---|---|
| Capital amortisation | Yes | If the transitional regime applies and the dwelling is the usual residence | It is one of the main concepts |
| Interest on the loan | Yes | If the mortgage financed the main residence deductible | Mortgage interest is tax-deductible within the base |
| Fees and other financing costs | Yes, usually | If they are directly linked to the deductible loan | They must have been borne by the taxpayer. |
| Insurance linked to the loan | Depends | Only in certain cases and when it is an actual part of the cost of the financing. | Not all insurance is automatically deductible |
| Appraisal | Depends | When it fits as an expense associated with the acquisition and deductible financing | It should not be treated as universal |
| Notary | Depends | If it corresponds to the acquisition or formalisation financed and falls within the base | Not any subsequent notarial costs |
| Register | Depends | Same as notary's fees, if linked to the deductible transaction | The case needs to be reviewed |
| Gestoría | Depends | If it forms part of the costs borne by the acquirer in the transaction | Must be linked to the financed acquisition |
| Subsequent reforms and improvements | No | The following do not form part of the base for this deduction | They may follow a different fiscal logic |
| Cancellation fees | In general, it does not | Not for the simple fact of cancelling or selling | The specific operation should be analysed |
Practical reading is: the deductible mortgage expenses are usually the amortisation, interest and expenses actually connected with the financing of the purchase of the principal residence under the transitional regime. On the other hand, concepts such as the mortgage appraisal o certain insurances require more caution in order to be deductible: they may fit in some cases, but should not be automatically deductible.
Which mortgage costs are not tax deductible?
Not all expenses related to the home or mortgage are deductible. One of the most frequent mistakes is to mix the financed purchase of the main residence with subsequent expenses that do not form part of that base.
The most common non-deductible mortgage expenses
- Alterations or improvements made after purchase, unless they are covered by a different specific deduction.
- Expenses for the conservation and repair of the property.
- Costs that are not directly linked to the financed acquisition of the principal residence.
- Expenses arising from the sale or cancellation of the mortgage that do not fit into the continuity of the deductible loan.
Common mistakes
- Think that any mortgage instalment can be included.
- Confusing purchase costs with subsequent maintenance costs.
- Assume that any insurance or notary bills are included in the base.
- Include works or renovations and think that renovations are tax deductible in the mortgage because they are related to the house.
Are appraisal, insurance, notary or registry fees also tax deductible?
These are by far the most repeated doubts when reviewing deductible mortgage-related expenses. The short answer is that they are not all treated equally.
Appraisal
The mortgage appraisal tax relief only to the extent that it can fit in as an expense linked to the acquisition and deductible financing of the principal residence. It should not be presented as an automatically deductible expense in any mortgage.
Life insurance
The mortgage-linked insurance is tax-deductible only in certain cases. The key is to check whether such insurance is actually associated with the loan and whether it can be considered as an expense of the financing. Having insurance on the commercial recommendation of the bank is not enough on its own.
Household or fire insurance
This is similar. There may be cases where its inclusion is considered, but it should not be treated as a general rule. It is necessary to check whether such expenditure is a real part of the financing and deductible assumption.
Notary
Notary fees related to the mortgage are deductible if they are associated with the acquisition or the formalisation of the loan within the deductible framework. Not all subsequent notarial work is automatically included in the tax base.
Register
Mortgage registration is tax deductible on similar terms to notary fees: it can be integrated if it is linked to the deductible financed acquisition and was borne by the acquirer.
Gestoría
The gestoría may come into some cases if it is part of the costs of the financed purchase transaction and is borne by the taxpayer. Again, this is not an automatic “yes”.
Special cases: change of bank, subrogation, novation or cancellation
When the mortgage changes, taxation can become complicated. The general idea is simple: the important thing is to check whether the continuity of the financing linked to the main residence is maintained and whether the taxpayer retains the right to the transitional regime. Each case should be reviewed on a case-by-case basis.
If you have changed the mortgage bank, made a subrogation or formalised a novation, there may still be a deduction if the new operation does not break this continuity and the loan continues to respond to the financing of the same deductible habitual residence. However, if the loan is cancelled and the transaction involves the transfer of the property or new financing without sufficient continuity, the treatment may change and it is no longer appropriate to assume that the deduction is maintained.
Autonomous Community deductions and differences according to the Autonomous Community
In addition to the transitional state deduction there may be regional mortgage deductions o differences in the regional tax bracket, depending on the autonomous community and the profile of the taxpayer. For this reason, when someone is looking for to deduct the mortgage of an autonomous community, the correct answer is always to check the regulations applicable in your territory.
The most prudent thing to do is not to work with closed lists if they are not going to be constantly updated. In taxation, and especially in autonomous community matters, it is advisable to check the current regulations each year before filing the tax return.
What documentation should I keep in order to deduct the mortgage?
In order to apply the deduction correctly, it is advisable to keep a clear folder with the documentation proving the entitlement and the expense.
- Deed of the mortgage loan.
- Deed of sale of the property.
- Bank receipts of fees paid.
- Bank certificates with interest and amortisation.
- Invoices for associated costs, if they are intended to be included in the base.
- Linked insurance policies, if their possible inclusion is to be assessed.
- Appraisal, notary, registry or agency documentation, where applicable.
Common mistakes when it comes to mortgage tax relief
These are some of the most common mistakes that are repeated when reviewing the rent:
- To think that any mortgage is tax-deductible.
- Forgetting that the dwelling must be habitual.
- Include expenses that are not directly linked to the financed acquisition.
- Assume that insurance is always included in the deduction.
- Confusing purchase costs with subsequent maintenance or refurbishment costs.
- Do not check whether, after a change of bank or a cancellation, the right to deduction is actually maintained.
Deduction for energy efficiency works
The Treasury maintains in the IRPF the deductions for energy efficiency works, A measure that may be particularly interesting for those who have undertaken reforms aimed at reducing the energy consumption of their homes or buildings. In the income tax campaign, there are still three tax deduction brackets in force, 20%, 40% and 60%, depending on the extent of the energy improvement achieved and provided that this can be technically accredited.
The highest deduction is up to 9,000 euros., However, it is reserved for energy rehabilitation actions in residential buildings, such as those carried out in homeowners' associations.
In the case of individual homes, the tax advantages are less, with savings of up to 1,000 or 3,000 euros depending on the type of work. In all cases, the key point in order to be able to apply the tax relief is to have a energy efficiency certificate before and after the renovation, in addition to justifying payments and checking that expenditure declared does not include excluded items.
Energy certificate, appraisal and home value: how they relate to the mortgage transaction
Although the focus of this article is on taxation, there are other elements involved in a mortgage transaction that are also decisive. The official valuation serves to fix the value of the property that acts as collateral for the loan and conditions the amount that the institution is willing to grant.
In addition, other relevant documents, such as the energy efficiency certificate, also coexist in the sale and purchase of a property.
Beyond the rent, knowing the real value of the property helps to make more confident decisions.
Know when you need a home valuation official and what role it plays in a mortgage transaction.
Conclusion: which mortgage costs to check before making the rent
If you're wondering which mortgage costs are tax-deductible, The practical answer is this: only those who retain the right to the deduction for investment in primary residence within the transitional regime can benefit, and this base usually includes amortisation, interest and some expenses actually linked to the financing. Before submitting the tax return, it is advisable to review each case carefully, check which items really fit and not include expenses out of inertia.
If in addition to checking the costs associated with your mortgage you need to know the real value of your home, consult the service of Gesvalt home valuation.
Frequently asked questions about deductible mortgage expenses
Which mortgages are tax-deductible?
Those that finance the acquisition of the habitual residence purchased before 1 January 2013, provided that the right to the transitional regime is maintained. It is not enough to have a live mortgage: the date, the use of the home and the fulfilment of the requirements are essential.
How much can I deduct for my mortgage?
In general, up to 15% of a maximum base of 9,040 euros per year, which gives an indicative maximum saving of 1,356 euros. The actual amount depends on what you have paid and whether these payments are part of the deductible base.
Is the mortgage appraisal tax deductible?
It can do so in certain cases, but not automatically. It is necessary to check whether the appraisal is part of the expenses linked to the acquisition and deductible financing of the main residence.
Is the life or home insurance of the mortgage tax deductible?
Depends. It should only be considered when the insurance is actually linked to the loan and can be considered as a financing expense under the applicable deduction. Not just any policy will qualify for a deduction.
Can a mortgage signed after 2013 be tax deductible?
In the general state deduction, no. The abolition applies to acquisitions after 1 January 2013, without prejudice to the existence of other regional deductions or specific cases.
What happens if I have changed my mortgage?
The deduction is not always lost, but the operation must be reviewed. If there is continuity in the financing of the same habitual residence and the requirements of the transitional regime are maintained, entitlement may still exist.
Are home improvements tax deductible with the mortgage?
Not for the mere fact of having a mortgage. Subsequent alterations and improvements do not, in general, form part of the basis for this deduction for the purchase of a principal residence.
Is it necessary to keep invoices and supporting documents?
Yes, it is advisable to keep deeds, bank receipts, loan certificates and invoices for the expenses you wish to claim as deductible. Without documentary support, it is much more difficult to prove entitlement.
Does the mortgage deduction change depending on the autonomous community?
It can change in its autonomous community tranche or coexist with its own deductions, depending on the regulations of each autonomous community. For this reason, it is always advisable to check the regulations applicable in the corresponding financial year.
Can I include notary, registry and agency fees?
Sometimes yes, but not automatically. Only when these expenses are actually linked to the financed acquisition of the main residence and fit within the deductible assumption.