Housing rehabilitation is not only a matter of modernization or aesthetics, but it has a strong environmental and economic component. Through these reforms, the aim is to improve the energy efficiency of homes, that is, lower resource consumption and lower environmental impact.
Therefore, the European Commission has approved an extension to the Recovery, Transformation and Resilience Plan that directly impacts the aid for individual home renovations.
This measure, which extends the deadline until the end of 2024, gives taxpayers the opportunity to benefit from significant deductions in the Personal Income Tax (IRPF). These deductions can reach up to 60% of the amounts invested in works to rehabilitate the habitual residence or improve energy efficiency.
Deductions for rehabilitation in main residence
Deductions vary depending on the type of work performed. To reduce the demand for heating or cooling, a deduction of 20% of the amounts invested is established, while, for improvements in the consumption of non-renewable primary energy, the deduction amounts to 40%.
Additionally, for those owners of homes located in residential buildings that have carried out energy rehabilitation works, a 60% deduction is contemplated.
Below we detail the deductions depending on the type of work carried out:
- Deduction of 20% in personal income tax for works to reduce heating or cooling demand: carried out between the entry into force of Royal Decree Law 19/2021 and December 31, 2024. An energy efficiency certificate is required that demonstrates to the minus a 7% reduction in consumption after the works. The deduction is applied in the tax period of the certificate issued after the works, or in the period in which the amounts were paid, if the certificate is later. The maximum annual base is 5.000 euros.
- 2.40% deduction for improvements in non-renewable primary energy consumption in habitual or rented housing, between the entry into force of the decree and December 31, 2024. A 30% reduction in energy consumption is required or achieving an energy classification A or B. This deduction is applied in the period of the energy efficiency certificate issued after the works or in the period in which the amounts were paid, considering the subsequent certificate. The maximum annual base is 7.500 euros.
- 3.60% deduction for homeowners in residential buildings where energy rehabilitation works have been carried out: between the entry into force of the Royal Decree and December 31, 2024. Energy rehabilitation works are considered those that improve energy efficiency of the building at least 30% or achieve an A or B energy classification. In addition, parking spaces and storage rooms acquired with these works are included. The maximum annual base is 5.000 euros and, in the case of communities of owners, the deduction is distributed according to the participation coefficient of each neighbor.
Conditions and limitations of deductions
These deductions have specific conditions such as the issuance of an energy efficiency certificate before and after the works, and the limitation of the maximum annual deduction bases, established at 5,000 euros for some categories. Furthermore, the three deductions are compatible with each other for the same work, but they can be combined in different works.
To benefit from these deductions, it is necessary to have an energy efficiency certificate both before and after carrying out the work. This certificate must be issued by a competent professional and will reflect the improvement in the energy efficiency of the home after carrying out the works.
Final dates
- December 31st, 2024: Deadline to benefit from personal income tax deductions.
- January 1st, 2025: Maximum date for the issuance of energy efficiency certificates related to the works.
Aid application process
The process to request this aid begins at the Rehabilitation Office of your autonomous community. Simply select your autonomous community and you will be redirected to its official website, where you will find all the detailed information on how to process your application. On these web pages you will have access to online templates with the necessary forms to start the process. These forms will guide you on the information and documentation that you must present.
Although the process is not completely online, the website of your Autonomous Community will provide you with all the necessary information and will tell you where you should submit the forms.
Online tools to help you
Although the application process is not done entirely online, as we mentioned above, there are tools available on the internet that can be of great help.
For example, on the website https://renueva.five.es/, you will find a helpful simulator that will allow you to calculate the energy consumption of your building and evaluate its potential for improvement.
This is important to determine if your project meets the minimums stipulated in the grant conditions.
Young rental bonus
In 2024, the youth rental bonus will be maintained, which is regulated in the State Plan for access to housing, which covers from 2022 to 2025. This is an aid of 250 euros per month for two years to cover rental costs for those under 35 years of age who are working. In this case, it is the autonomous communities that oversee putting the aid into operation and executing the payments.
Aid for housing rehabilitation represents a great opportunity to improve the quality and efficiency of our homes. With the extension of this aid until
2024, it is expected that a high number of homeowners will choose to embark on these projects, thus contributing to a more sustainable and efficient housing model.
