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V0130-24 15 February 2024 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del capital inmobiliario

Energy efficiency tax deductions applicable to holiday rental properties

A taxpayer queried whether energy efficiency tax deductions for renovations could be applied to a property rented for tourist use. The Directorate-General for Taxes (DGT) ruled that, as the property does not provide hotel services or employ staff, the income is classified as income from real estate capital. Since the property is not tied to a business activity, the deduction is permitted.

The question raised

Possibility of applying the deduction for works to improve energy efficiency in dwellings provided for in the fiftieth additional provision of Law 35/2006 on Personal Income Tax.

The DGT's ruling

The leasing for tourist use without hotel services or employees constitutes income from real estate capital, not an economic activity. Therefore, the owner may apply the deduction provided for in the 50th additional provision of the Personal Income Tax Law (LIRPF) for energy rehabilitation works. To this end, it must be certified that the consumption of non-renewable primary energy is reduced by at least 30% or that the energy rating is improved to class 'A' or 'B'.

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