The State Budget for 2016 predict that 3.9 million taxpayers apply the deduction for residence, a tax incentive that the government of Mariano Rajoy eliminated in 2013 for new purchases. Thus, the tax incentive disappears and loses force each year as respondents cancel their mortgages. The group of beneficiaries will be reduced by 19.4% in 2016 compared to the current year.
Relief for housing is still the highest personal income tax deduction. It allows 15% deductibility of mortgage payments with a limit of 9,040 euros.
