Homeowners may apply the 60% tax deduction for energy efficiency works

Improving energy efficiency in homes allows access to significant tax benefits in Personal Income Tax (IRPF). Recently, the scope of the 60% deduction intended for rehabilitation works that reduce energy consumption has been clarified.

What the DGT has ruled

The DGT has confirmed that the 60% deduction provided for in current regulations is applicable to rehabilitation works that improve energy efficiency in buildings with predominant residential use. For this deduction to be effective, it is essential to meet one of the following technical requirements:

• Prove, through an energy efficiency certificate, a reduction in non-renewable primary energy consumption of at least 30%.
• Achieve an improvement in the property's energy rating to reach class 'A' or 'B'.

In the specific case of single-family homes, the regulations allow co-owners of the property to apply the deduction proportionally to the amounts paid, in accordance with their ownership percentage in the property.

What it means for you

If you are a homeowner and carry out works to improve your insulation or energy systems, you can reduce your IRPF tax liability. It is fundamental to keep in mind that tax limits are applied individually. This means that each taxpayer has a maximum annual base of 5,000 euros and an accumulated base of 15,000 euros in their own tax return.

For owners who share ownership of the home, the deduction is not divided globally; instead, each person applies their proportional part according to their share in the property, respecting their own individual limits.

What you should do

To ensure the right to this deduction, it is necessary to have the technical documentation that supports the improvement obtained. Before starting the works, it is necessary to verify that the project meets the consumption reduction thresholds or the rating improvements required by law. The energy efficiency certificate issued after the works will be the key document to prove compliance to the Tax Administration.