The law has changed over time regarding the possibility of deducting home insurance on the income tax return. Home insurance can be tax-deductible, but there are other factors that must be taken into account in order to deduct this type of insurance.
Conditions for Deducting Home Insurance
In Spain, the only homes required to have this insurance are main residences that are mortgaged. If the main residence is not mortgaged, it cannot be deducted. But if the home is linked to a mortgage, home insurance may be deductible.
It is also necessary to take a time limit into account. Only homes purchased before 1 January 2013 may qualify. Homes purchased after that date do not meet the requirement for deducting home insurance.
Therefore, if both conditions are met, namely having a mortgage and having purchased the home before 1 January 2013, home insurance can be deducted.
How Much Home Insurance Can Be Deducted?
The entire home insurance premium cannot be deducted. The maximum deduction base for the acquired home cannot exceed EUR 9,040 per year. Any amount above this figure, made up of the mortgage, expenses and other insurance, will not be included. Only the policy premium is discounted, with a maximum of 15% of the deduction base.
Where Is Home Insurance Deducted in the Income Tax Return?
Different cases arise depending on whether it is a main residence, a rented property or a property used by a self-employed professional.
Three Different Cases
- In the case of deducting insurance for investment in a main residence, boxes 547 and 548 are completed in the section for deduction for investment in a main residence. This only applies to homes purchased before 2013 and under a mortgage.
- In the case of rental property, box 0114 is completed for insurance contract premiums.
- In the final case, a self-employed worker who wants to deduct home insurance because they use their home for their economic activity must complete box 200, insurance premiums, in the section for direct economic activity income.
Can I Deduct Home Insurance Amounts from Previous Years?
If you did not know that home insurance could be deducted in previous tax years and did not claim it, there is a period of 4 years to request it by filing a request for refund of undue payments.
It is important to consult specialists to know whether home insurance is deductible and to file the income tax return in accordance with the law.