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V1397-24 12 June 2024 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rehabilitación energética

Energy efficiency renovation tax deduction for single-family homes can be applied by deducting subsidies

A taxpayer inquired about applying the tax deduction for energy efficiency renovation works on their single-family home, the treatment of received subsidies, and the implications of co-ownership. The Directorate General for Taxes (DGT) clarified that the 60% deduction is applicable if efficiency requirements are met and that the subsidy should not be included in the taxable base.

The question raised

Possibility of applying the deduction for energy rehabilitation works provided for in section 3 of the fiftieth additional provision of Law 35/2006, of November 28, on Personal Income Tax.

The DGT's ruling

Owners of dwellings in residential buildings may deduct 60% of the amounts paid for rehabilitation works that improve energy efficiency (a 30% reduction in non-renewable primary energy consumption or improvement to class A or B). Amounts subsidized through public aid must be deducted from the deduction base. Each co-owner may apply the deduction for their proportional share of ownership. Furthermore, the subsidies from Royal Decree 477/2021 are not included in the personal income tax (IRPF) taxable base.

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