Buying a home is one of the most significant financial decisions for any family. However, what many buyers don’t realize is that the moment of the year in which the purchase is completed can have a direct impact on their tax bill.
December, in particular, offers very interesting opportunities for those considering acquiring a property —especially in high-value markets such as La Moraleja, El Soto or El Encinar de los Reyes.
In this article, we explain which tax advantages you can benefit from if you buy a home before the end of the year, what conditions to keep in mind, and why acting now can be a smart strategy for 2025–2026.
1. Closing the purchase in December: why timing matters for tax purposes
When you buy a home, several taxes are calculated based on the fiscal year in which the transaction is finalized. If you sign before December 31:
The following will fall within the current fiscal year:
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Transfer Tax (ITP) or VAT, depending on whether the property is new or pre-owned.
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Notary, registry and administrative fees, if you intend to use them for future deductions.
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Wealth computation, relevant if you are planning your position for the Wealth Tax.
This allows you to anticipate your tax burden, adjust your financial decisions before year-end, and optimize your taxation if you expect additional movements in January.
2. Benefits if the purchase impacts the Wealth Tax
In regions such as Madrid, where there is a 100% allowance, the main residence is exempt.
However, if you buy a home as a second residence or an investment, it is important to note:
For luxury home buyers —whose assets often exceed Wealth Tax thresholds— closing before December allows for more accurate planning of the following year’s taxation.
3. Optimizing taxation when buying with financing
If you decide to buy a home with a mortgage, closing the transaction before December 31 brings two clear benefits:
1. Payments and amortizations already counted in this fiscal year
Interest and fees generated during December will be included in the annual tax closing.
2. Better planning for early repayments in 2025
Starting in December allows you to plan early repayments next year to:
4. If the property is an investment: amortizations and deductions
Buying a home to rent it out can offer attractive tax advantages, and December is a key month:
The property begins to be considered a depreciable asset from the moment of purchase.
Closing in December means you can already apply:
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property depreciation,
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deductible rental-related expenses,
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agency fees,
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loan interest,
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property tax (IBI), insurance, and other necessary expenses.
Even if it’s only for one month of the fiscal year, that month counts.
5. Potential savings due to regulatory changes between one year and the next
Every year, changes may be introduced in:
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tax brackets,
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deductions,
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tax rates,
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regional incentives.
Buying a home in December gives you the strategic advantage of locking in the current tax conditions, avoiding the impact of any regulatory changes coming into effect on January 1.
6. Why December is particularly interesting in the luxury market
In premium areas such as La Moraleja, December offers three key advantages:
Less competition
Many buyers postpone decisions until January, which can open negotiation opportunities.
Sellers seeking to close before year-end
This often facilitates faster and more flexible agreements.
High tax-planning interest among high-net-worth buyers
Closing before December 31 is frequently part of a broader, strategic financial plan.
Conclusion: December, a strategic month to buy a home
If you are considering buying a home, December offers a particularly favorable tax window to optimize your taxes, anticipate regulatory changes and better plan your asset structure. In the luxury market, where each decision carries significant fiscal impact, closing a transaction before the end of the year can be a true competitive advantage.
If you would like to analyze your purchase from a fiscal, financial and market perspective, we can help you evaluate it in detail with complete confidentiality.