Homeowners must amend 2023 Personal Income Tax returns to apply energy renovation deduction

The application of deductions for energy efficiency improvement works in Personal Income Tax (IRPF) requires strict compliance with the timeframes established by current regulations. A common error is attempting to apply these deductions in tax years following the completion of the works, whereas the regulations require a specific treatment linked to technical certification.

What the DGT has ruled

The Dirección General de Tributos (DGT) has determined that, according to the fiftieth additional provision of the IRPF Law, the deduction for energy renovation works must be taken in the tax period in which the energy efficiency certificate is issued following the execution of the works.

In the case analyzed, since the energy efficiency certificate was issued in February 2023, the deduction should have mandatorily been applied in the tax return corresponding to the 2023 tax year. Therefore, the taxpayer cannot carry this deduction right forward to the 2025 tax year, but must instead request an amendment to their 2023 self-assessment to exercise this right.

What this means for you

If you have carried out energy renovation works on your home and hold an energy efficiency certificate issued in a specific year, you must ensure that the deduction has been applied in the income tax return for that same tax year.

Attempting to apply the deduction in a tax year subsequent to the issuance of the certificate constitutes an error in the tax settlement that the Tax Agency (Hacienda) could dismiss. The regulations link the right to the deduction to the moment the technical document accrediting the improvement is obtained, not to the moment of filing the return or the following tax year.

What you should do

It is necessary to verify the issuance date of the energy efficiency certificates for the works carried out on your property. If you detect that the deduction was not applied in the tax year in which said certificate was issued, you must proceed to amend the tax return for that year. It is recommended to cross-check the technical documentation with the submitted tax settlement to ensure that the tax year coincides with the date of the certificate.