Homeowners may deduct energy efficiency works if the property is their primary residence

The application of deductions for energy efficiency improvement works in Personal Income Tax (IRPF) raises doubts when the property is not the taxpayer's primary residence at the time the works are executed. The Dirección General de Tributos (DGT) has clarified the applicable tax treatment depending on when the change of residence occurs.

What the DGT has ruled

The ruling analyzes the right to apply the deductions provided for in the fiftieth additional provision of the LIRPF Law when a property ceases to be a second home to become a primary residence after carrying out energy improvement works. The DGT's criteria establish two different scenarios:

• If the move occurs in the same tax period as the works: The taxpayer may apply any of the deductions provided for in the aforementioned additional provision.
• If the move occurs in a subsequent tax period: It will only be possible to apply the deduction established in section 3 of said provision. This specific modality does not require the home to be the primary residence during the execution of the works.

In both cases, the administration emphasizes that strict compliance with the specific requirements of each deduction is essential, regardless of the property's status.

What this means for you

If you are the owner of a property that you currently use as a second home or that is vacant, and you plan to carry out works to improve its energy efficiency, the timing of your move will determine the tax benefit you can obtain. If you carry out the works and move into the home within the same calendar year, you have access to a wider range of deductions. If the move is postponed to the following year, your deduction options are limited to those provided in section 3 of the mentioned regulations.

What you should do

It is necessary to verify the current regulations (RD-ley 19/2021 and RD-ley 7/2026) to identify which deduction best fits your situation. Before starting the works, it is advisable to determine the planned date of moving into the home to know in advance the scope of the available tax benefits. Since each case presents particularities regarding compliance with the technical requirements of the works, it is necessary to assess the specific situation of each property.