Energy efficiency deduction: the certificate is key to its application

The application of deductions for energy efficiency improvement works in Personal Income Tax (IRPF) requires strict compliance with temporal and documentary requirements. A binding ruling from the Dirección General de Tributos (DGT) has clarified fundamental aspects regarding the cost of licenses and the validity of the documentation necessary to access this tax benefit.

What the DGT has resolved

The ruling focused on determining whether the cost of the municipal license, necessary to execute rehabilitation works, can be integrated into the base for the energy efficiency deduction. Likewise, the question of the applicable tax period was raised.

In accordance with current regulations (LIRPF, RD-ley 19/2021, and RD-ley 8/2023), the deduction is conditional upon the reduction of non-renewable primary energy consumption or the demand for heating and cooling energy. The DGT establishes that the expenses necessary for the execution of the work, such as municipal licenses, form part of the investment cost that entitles one to the deduction.

However, a critical aspect is the timing of the certification. For the deduction to be valid, the energy efficiency certificate must prove the improvement obtained under the terms established by the regulations, which conditions the possibility of applying the benefit if the certification does not comply with the required deadlines and requirements.

What it means for you

If you are the owner of a primary residence and have carried out works to improve its energy efficiency, you must keep in mind that simply having executed the work is not enough. The right to the deduction depends on the correct accreditation of the improvement through the corresponding energy certificate.

Expenses derived from obtaining municipal licenses are deductible, as they are considered part of the cost of the rehabilitation work. However, the lack of a certificate that validates the energy improvement at the appropriate time could prevent the application of the deduction in your income tax return.

What you should do

It is fundamental to ensure that all technical documentation, especially the energy efficiency certificate, complies with the requirements of current regulations before filing your tax return. It is recommended to verify that the certificate reflects the actual improvement of the home and that license costs are duly documented to be integrated into the deduction base. Each situation regarding works and certification must be analyzed to confirm that the requirements of the applicable Royal Decree-laws are met.