The Spanish Royal Decree-Law 19/2021, October 5th, about urgent measures to increase the building rehabilitation activity in the context of the newest recovery, transformation and resilience plan (Plan de Recuperación, Transformación y Resiliencia, in the Spanish Official Gazette, November 6th of 2021), introduces three new temporary deductions in the IRPF (Spain’s Personal Income Tax) for those amounts invested in rehabilitation works aiming at improving the energy efficiency in main residences, or rented residences that act as the former.
1º) Deduction due to a reduction in the heating and cooling demand: Up to 20% on amounts paid between October 6th of 2021 to December 31st of 2022 can be deducted from rehabilitation works that meet the following requirements:
– They must be main residences, houses rented to be used as main residences, or residences expected to be rented, provided that they are rented before December 31st of 2023.
– The works carried out contribute to a reduction in the heating and cooling demand. In this sense, it will only be considered that such reduction has happened when the sum of heating and cooling demand indicators shown in the residence’s energy performance certificate issued by the corresponding technician after the works have been completed reaches at least 7% in relation to the one issued before they began.
– The maximum base amount of the deduction is set to 5,000€/year.
2º) Deduction due to an improvement in non-renewable primary energy consumption: Up to 40% on amounts paid between October 6th of 2021 to December 31st of 2022 can be deducted from rehabilitation works that meet the following requirements:
– They must be main residences, houses rented to be used as main residences, or residences expected to be rented, provided that they are rented before December 31st of 2023.
– The works carried out contribute to an improvement in non-renewable primary energy consumption. In this sense, it will only be considered that such improvement has happened when the non-renewable primary energy consumption indicator is either reduced by at least 30%, or there is an improvement in the residence’s energy rating that reaches “A” or “B” in the same rating scale, recognised through the energy efficiency certificate issued by the corresponding technician after the works have been completed, in relation to the one issued before they began.
– The maximum base amount of the deduction is set to 7,500€/year.
3º) Deduction due to rehabilitation works that lead to an improvement in energy efficiency in mainly-residential buildings: Up to 60% on amounts paid between October 6th of 2021 to December 31st of 2022 can be deducted from rehabilitation works that meet the following requirements:
– For such improvement to be reached, the works carried out in the building must lead to an improvement in the energy efficiency of the building where the residence is located. This must be recognised through the building’s energy efficiency certificate issued by the corresponding technician, after the works have been completed, where either a reduction in non-renewable primary energy consumption, referred to the energy certification, of at least 30% is appreciated, or the improvement in the building’s energy rating reaches an “A” or “B”-type, in the same scale, in relation to the certificate issued before the works began.
– The maximum base amount of the deduction is set to 5,000€/year. Paid amounts that are not deducted as a consequence of exceeding the maximum base amount per year can still be deducted, at the same cap, in the following four tax years, but under no circumstances shall the combined base amount of the deduction exceed 15,000€.
Under no circumstances shall amounts paid with in cash legal tender be subjected to any deduction rights.
