Energy rehabilitation tax deduction after purchasing a home

The Dirección General de Tributos (DGT) has issued a relevant ruling for homeowners living in buildings undergoing rehabilitation processes to improve energy efficiency. The inquiry focused on determining whether a taxpayer can apply the Personal Income Tax (IRPF) deduction for amounts invested in such improvements after having acquired the property.

What the DGT has ruled

The DGT establishes that the deduction for rehabilitation works that improve energy efficiency in buildings of predominantly residential use allows for the deduction of 60 percent of the amounts effectively paid. The ruling clarifies that the taxpayer can apply this deduction for the amounts paid to the rehabilitation company from the date of the property's acquisition.

To determine the exact amount the owner can deduct, the horizontal property participation coefficient must be applied to the total amounts paid by the community of owners for the works carried out.

What this means for you

If you are the owner of a home in a building undergoing energy efficiency improvement works, this ruling allows you to access the tax benefit even if the investment is made after having formalized the purchase of your property. It is not necessary to have been the owner throughout the entire execution process of the works to benefit from the deduction on your corresponding share.

This scenario falls within the regulatory framework of Royal Decree-Law 19/2021 and Royal Decree-Law 18/2022, integrated into the IRPF Law.

What you should do

To ensure the correct exercise of this right, it is fundamental to have the following documentation:

• Energy efficiency certificates: proving the improvement obtained after the works.
• Proof of payment: of the fees or amounts paid to the community of owners intended for the rehabilitation.
• Horizontal property documentation: stating the participation coefficient of your property for the calculation of the deduction.

Each particular situation must be analyzed to verify that all requirements demanded by current regulations are met.