News

Urgent measures to promote housing rehabilitation

14/10/2021

October 6, Royal Decree Law 19/2021, of October 5, came into force on urgent measures to promote the rehabilitation of buildings in the context of the Recovery, Transformation and Resilience Plan.
New deductions in personal income tax of 20, 40 or 60% for the execution of rehabilitation works in homes and residential buildings that improve energy efficiency. Certain subsidies and rehabilitation aid are excluded from taxation.
 
Three new temporary deductions in personal income tax are approved:

1. Deduction for works carried out that reduce the demand for heating and cooling in habitual residence by 7%.
 
Requirements:

• Deduction percentage: 20% of the amounts paid for works carried out in the application period.
• Maximum limit: 5,000 euros per home.
• Application period: from October 6, 2021 to December 31, 2022.
• Property for which the deduction can be made: the taxpayer's habitual residence, or of any other property owned by him that was leased for use as a home at that time or in expectation of rent, provided that in the latter case, the home is rented. before December 31, 2023.
• People who can be accommodated: natural persons who carry out rehabilitation and improvement actions in which a reduction of at least 7% in the demand for heating and cooling is obtained, according to the energy efficiency certificate of the home, which will have to be issued before January 1, 2023.

2. Deduction for works carried out that reduce non-renewable primary energy consumption by 30%, or that improve the energy rating reaching the letters "A" or "B" in habitual residence.
 
Requirements:

• Deduction percentage: 40% of the amounts paid for the works carried out in the application period.
• Maximum limit: 7,500 euros per home.
• Application period: from October 6, 2021 to December 31, 2022.
• Property for which the deduction can be made: the taxpayer's habitual residence, or of any other property owned by him that was leased for use as a home at that time or in expectation of rent, provided that in the latter case, the home is rented. before December 31, 2023.
• People who can be accommodated: individuals who carry out rehabilitation or improvement actions in which at least 30% of the consumption of non-renewable primary energy is reduced, creditable through the energy efficiency certificate of the home, or improvement of the rating energy of the home to obtain an energy class "A" or "B", on the same rating scale. The energy efficiency certificate must be issued before January 1, 2023

3. Deduction for actions that reduce non-renewable primary energy consumption by 30%, or improve the rating reaching the letters “A” or “B” in buildings of predominantly residential use.

Requirements:

• Deduction percentage: 60% of the amounts paid for the works carried out in the application period.
• Maximum limit: 15,000 euros per home.
• Application period: from October 6, 2021 to December 31, 2023.
• Property for which you can take advantage of the deduction: it must be improvement actions that affect the whole of the building.
• People who can be accommodated: natural persons have carried out improvement or rehabilitation works in the building by which a reduction of at least 30% of the consumption of non-renewable primary energy is obtained, creditable through the building's energy efficiency certificate, or improvement of the building's energy rating to obtain an "A" or "B" energy class, on the same rating scale.

Regulatory authorization for the supply of information:
 
The autonomous communities are obliged to provide information regarding the registered energy efficiency certificates and the final aid resolutions that have been granted for works to improve the energy efficiency of homes, together with the list of cadastral reference numbers to which they are refer.

Non-integration in the taxable base of personal income tax of certain aids:
 
The aid granted by virtue of the different programs established in the following royal decrees will not be integrated into the taxable base of personal income tax in the year 2021 and following:

• Royal Decree 691/2021, of August 3, which regulates the subsidies to be awarded to energy renovation actions in existing buildings, in execution of the Energy Renovation Program for existing buildings in demographic challenge municipalities (PREE 5000 Program), included in the Regeneration Program and demographic challenge of the Urban Rehabilitation and Regeneration Plan of the Recovery, Transformation and Resilience Plan, as well as its direct concession to the autonomous communities.
• Royal Decree 737/2020, of August 4, which regulates the aid program for energy renovation actions in existing buildings and regulates the direct granting of aid from this program to the autonomous communities and cities of Ceuta and Melilla .
• Royal Decree 853/2021, of October 5, which regulates the assistance programs in residential rehabilitation and social housing of the Recovery, Transformation and Resilience Plan.