Impossibility of applying the energy efficiency deduction under the special regime of Art. 93 LIRPF

The Dirección General de Tributos (DGT) has issued a relevant ruling for taxpayers who pay taxes in Spain through the special regime provided for in Article 93 of the Personal Income Tax Law (LIRPF). The inquiry focused on the possibility of applying the deduction for works to improve the energy efficiency of housing, established in the 50th additional provision of the aforementioned law.

What the DGT has resolved

The body has determined that the energy efficiency deduction is not applicable to these taxpayers. The basis for this decision lies in the nature of the special regime of Article 93 LIRPF, whose determination of tax liability is carried out following the rules of Non-Resident Income Tax, with the specificities that the law itself establishes.

According to Article 114 of the Personal Income Tax Regulation (RIRPF), the differential tax liability in this regime only allows for the deduction of the amounts provided for in Article 26 of the consolidated text of the Non-Resident Income Tax Law. Since the deduction for energy efficiency works is not included in said regulatory framework, taxpayers under this regime cannot make use of this tax benefit.

What it means for you

If you are a professional or worker who has moved to Spain and has opted for the special taxation regime of Article 93 of the LIRPF, you must take into account that your ability to apply deductions is limited. Even if you make investments in your home to improve its energy efficiency, these will not be deductible in your tax return due to the regulatory structure of your tax regime.

What should be done

It is necessary to analyze your tax situation and the taxation regime that is most advantageous to you in detail, according to your activity and residence. Given that the regulations limit the deductions permitted in the special regime, it is advisable to assess whether the impact of not being able to apply energy efficiency incentives conditions your tax strategy in Spain. Each situation requires an individualized analysis to determine the most appropriate option.