Some mortgage holders are in luck every time it comes time to file their income tax return. If you meet the requirements demanded by the Treasury, you will be able to save more than 2,000 euros per year. Of course, this advantage is not available to everyone.
The Tax Agency pays particular attention to one detail, which is the date of signing the loan. In order for us to be able to deduct the mortgage in the declaration, it is required that the contract was taken before January 2013. Therefore, all those who have been paying for their home before this date will have the possibility of benefiting from this advantage.
They also require that the deduction had already been applied in the Income Tax return for 2012 or previous years. Also that it is the usual place of residence at present. If you comply with all of this, you would only have to check one box on the declaration, that of ‘Deduction for investment in habitual residence’.
How much money can a mortgagee deduct in the income tax return?
The amount of money that can be deducted in the Income Tax return will depend on what was paid for the mortgage last year. The deduction will be at least 15% of the amount paid in 2023, with a maximum base of 9,040 euros. This means that the savings in the declaration will reach up to 1,350 euros on average, publishes the portal HelpMyCash.
However, this amount could double to 2,700 euros. This is what happens when the mortgage loan has two owners, which is usually common among couples who purchase a property. In that case, both would enjoy this relief on their returns if they were filed separately.
There is a possibility that mortgages signed before 2013 also suffered some type of modification. Just as some users decide to pay off debt to reduce the outstanding amount, others choose to increase its capital. In that situation, the tax relief would continue to apply, although with one detail to take into account.
Only the part of the capital that existed before the mortgage was extended would be deductible. Therefore, with a view to the next Income tax campaign you must take this circumstance into account. If the loan is prior to 2013, you will be able to get a return on that money that you contribute monthly in mortgage payments.
2024-02-07 18:34:39
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