The fact that a taxpayer is registered in a given municipality does not mean that his habitual residence and, based on it, his habitual residence are located in this municipality. To consolidate the deductions that are practiced for a specific home, said housing must reach the consideration of habitual and not lose such character while they continue practicing.
Impact of the transfer on the deduction for investment in habitual residence
A natural person moves his residence to another municipality for a change of professional destination,having his previous home in property the condition of habitual until said transfer, and for which he continues to practice the deduction for investment in habitual residence.
The aforementioned deduction was repealed with effect from January 1, 2013, establishing a transitional regime according to which it is allowed to continue applying the deduction from the 2013 financial year in accordance with the regulations in force on December 31, 2012 (LIRPF disp.trans.18ª).
From the moment the taxpayer moves his habitual residence from one owned home to another, the first loses, if he has reached it, the consideration of habitual; However there is an exception,only it would not lose such character if the enjoyment of the new habitual residence was inherent to the position or public or private employment performed (RIRPF art.54.2).
If this exception is not given, from the date on which the taxpayer ceases to reside in his habitual residence he loses the right to make the deduction for the amounts linked to his acquisition that he satisfied from that moment.
In the future, if the one that in its day reached the consideration of habitual and for which the deduction was practiced once again constitutes the habitual residence of the taxpayer, this, in application of the transitional regime, will have the right to practice it again, in accordance with the personal income tax regulations in force at that time.
According to a repeated criterion of the General Directorate of Taxes, the habitual residence is configured from a temporary perspective that requires a continuous residence by the taxpayer, which requires its effective and permanent use by the taxpayer himself.
However, there are certain cases in which doubts could arise about which is the residence that has the status of habitual for a taxpayer, so this is a question of fact that must be proven on a case-by-case basis. In this sense, the registration does not in itself constitute a sufficient element of accreditation of residence and habitual residence in a locality, although the municipal registration certificate is a relevant element when assessing the place of habitual residence, but it is not unique or conclusive.
If the taxpayer understands that a certain building has the consideration of habitual residence, to assert his interest he must be able to sufficiently prove the facts constituting the place of his habitual residence by any valid means of proof in law, corresponding its assessment to the management and inspection bodies of the Tax Agency (AEAT).
Communication of change of address
Taxpayers must inform the Administration of the change of address by means of an express declaration to that effect.
Compliance with this obligation, as far as natural personsare concerned, is carried out through the following procedural channels:
a) Those that must be in the Census of Entrepreneurs, Professionals and Retainers, are obliged to communicate the new tax address within one month of the change, by means of a census declarationof modification.
b) Those that must not be in the Census of Entrepreneurs, Professionals or Retainers must communicate this variation within three months of its occurrence, by submitting form 030. If, prior to the expiration of this period, the filing of the personal income tax self-assessment ends, this change must be communicated by presenting the corresponding self-assessment model, unless it has been made previously.
The completion of the form is carried out, in general, individually by each taxpayer. However, when the change of address affects both spouses, a single form may be completed and signed by both spouses.
Form 030 can be submitted on a form to the Tax Agency’s Office or Administration corresponding to the taxpayer’s tax address at the time of filing, either by direct delivery or by mail; or electronically via the Internet.
These taxpayers can also notify the Tax Agency of their change of address by telephone call to the Tax Agency’s Call Centre, telephone number 901 200 345 or through diligence formalised by the Tax Administration in case of discrepancy in the address data.
Expenditure for geographical mobility
When a person accepts a job in a municipality other than that of his habitual residence and this obliges him to change his address, for two years he can compute an additional expense of 2,000 euros in his personal income tax
Additional deductible expense
Geographical mobility: An acquaintance of his has found work in a location other than his habitual residence, and this will force him to change his address.
This person will be able to reduce his income from work in the year of change of residence and the following year by 2,000 euros,as “expenses for geographical mobility”. In this way, if a marginal rate of 37% is applied to it, eur 740 will be saved each of those two years.
Registration in the SEPE: For this incentive to be applicable, it is necessary that at the time of formalizing the contract the affected party is registered with the SEPE as a job seeker.
If the new job and the change of address are motivated by having passed some competitions, the registration in the SEPE must be prior to the publication in the BOE of the list of approved applicants.
Other requirements
Change of residence: When applying this incentive, you should take into account:
- Unemployed: If the affected person has voluntarily ceased in his previous job, it will be enough for him to register as a jobseeker in the SEPE and a few days later he is hired by the new company.
- Temporary Worker: The incentive is also applicable in temporary contracts.
- Municipality: It is an essential requirement that there is a change of residence to a different municipality, although that municipality does not have to be the same one in which the company is located (it can be a nearby one).
Question of fact: Regarding the change of residence, you must be “obliged” according to the circumstances that concur in each case. Since the law does not establish objective criteria to define when this “obligation” occurs, a good option is to be guided by what the labor courts say when settling disputes over transfers and displacements.
Criteria: The criteria applied by these courts shall:
- It should be understood that the change is not obligatory when the distance between the worker’s home and the new work center does not exceed 30 kilometers, or if the travel time does not exceed 25% of the day.
- The means or facilities of transport must also be assessed. In this way, if the affected person has public transport of buses or commuter trains, it should be understood that it will not be necessary to change his address.
- Beyond these limits, it will be reasonable to defend the mandatory nature of the change and the application of the incentive.
Deductible limit
Finally, keep in mind that the expense for geographical mobility of 2,000 euros, together with the expense of between 3,500 and 7,750 (applicable to workers with disabilities) and the fixed amount of 2,000 euros for “other expenses” (applicable to all workers) have as a joint limit the full income from work reduced in the rest of the deductible expenses provided.
Thus, all these expenses can never result in a negative return on work.
In order to be able to calculate the expenditure for geographical mobility, it is necessary that the change of job requires a change of address and that at the time of being hired the worker is registered as a jobseeker in the SEPE.
If you have any questions about this type of deduction, you can contact us and our team of advisors will be in charge of helping you.
