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Form 100. Personal Income Tax Declaration 2021

10.11.19. For acquisition and rehabilitation of housing in model village projects

15% of the amounts paid during the year for the acquisition or rehabilitation of homes. 

Requirements

  • The home had to have been acquired and the works had to have started on January 1, 2021.

  • That the homes be located on land that is integrated into model village projects, in accordance with the provisions of Law 11/2021, of May 14, on the recovery of agricultural land in Galicia.

  • That the homes are intended for residence of the taxpayers who acquire or rehabilitate them, whether on a regular or sporadic basis.

    Therefore, the deduction will not be applicable when the home is rented even if the rental is only for part of the year.

Deduction base

The base of this deduction may not exceed 9,000 euros per year in the case of constructions intended to constitute the taxpayer's habitual residence. Otherwise, the base of the deduction may not exceed 4,500 euros per year.

The basis of the deduction will be constituted by the amounts paid for the acquisition or rehabilitation of the home, including the expenses incurred that have been borne by the purchaser, and, in the case of external financing, the amortization, interest, cost of the variable interest rate risk hedging instruments for mortgage loans regulated in article nineteen of Law 36/2003, of November 11, on economic reform measures, and other expenses derived from it.

In the event of application of the aforementioned hedging instruments, the interests paid by the taxpayer will be reduced by the amounts obtained by the application of the aforementioned instrument.

Rehabilitation works

For the purposes of this deduction, rehabilitation works will be considered those that meet the following requirements:

  • That they have the corresponding permits and administrative authorizations.

  • That have as their main purpose the reconstruction of the home through the consolidation and treatment of the structures, facades or roofs and other similar works, provided that the overall cost of the rehabilitation operations exceeds 25% of the acquisition price, if carried out this during the two years immediately prior to the start of the rehabilitation works, or, in other cases, the market value of the property at the time of said start.

    For these purposes, the proportional part corresponding to the land will be deducted from the acquisition price or market value of the property. When the value of the land is not known, it will be calculated by prorating the acquisition cost paid or the market value between the cadastral values of the land and the construction for each year.

Incompatibilities

This deduction is incompatible , for the same investments, with the deduction for investment in air conditioning and/or domestic hot water installations that use renewable energy in the habitual residence and intended exclusively for self-consumption and with the deduction for energy efficiency improvement works in residential buildings or single-family homes.

Completion

It will reflect the amount of the investment with the right to deduct and indicate whether it is or will be your habitual residence.