A ruling from the Central Economic-Administrative Court allows the inclusion in the IRPF of the money used to cancel the mortgage after selling the primary residence. It affects those who purchased before 2013.
A ruling from the Central Economic-Administrative Court, dated October 20, 2025, allows the inclusion of the money used to cancel the outstanding mortgage after selling the property in the deduction for investment in primary residence of the IRPF. According to Líder Actual, this criterion represents a shift from the more restrictive interpretation previously applied by the Tax Agency.
The change affects taxpayers who purchased their primary residence before January 1, 2013, the date from which the benefit was generally eliminated, and who are eligible for the transitional regime. Some may recover part of what was paid in previous declarations, as long as they are within the deadline.
To claim, three conditions must be met: the property must have been the primary residence, the taxpayer must be entitled to the transitional regime, and after the sale, part of the money must have been used to cancel the mortgage loan. Additionally, the tax year must still be within the legal deadline for claims.
Those who have already submitted their tax return without including this amount can request a rectification of the IRPF self-assessment. The general deadline for rectification is four years, although the counting starts from a date that depends on each tax year.
As documentation, it is advisable to gather proof of the purchase and sale of the property, the mortgage cancellation deed, and the corresponding bank statements. Before starting the process, a tax advisor can help determine which years can be claimed and how much money could be recovered.
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