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Form 100. Personal Income Tax Return 2023

10.11.20. For the acquisition and rehabilitation of housing in model village projects

Amount

15% of the amounts paid in the financial year for the acquisition or rehabilitation of housing.

Requirements

  • The property must have been purchased and construction work must have started on or after 1 January 2021.

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

  • The homes must be used as residences for the taxpayers who acquire or rehabilitate them, whether on a regular or sporadic basis.

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

Deduction base

The basis for this deduction may not exceed 9,000 euros per year in the case of buildings intended to constitute the taxpayers' habitual residence. Otherwise, the deduction base may not exceed 4,500 euros per year.

The basis for the deduction will be 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, the interest, the cost of the instruments for hedging the variable interest rate risk of mortgage loans regulated in article nineteen of Law 36/2003, of November 11, on economic reform measures, and other expenses derived therefrom.

In the event of application of the aforementioned hedging instruments, the interest paid by the taxpayer will be reduced by the amounts obtained from 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 administrative permits and authorizations.

  • Those whose main objective is the reconstruction of the dwelling by consolidating and treating the structures, facades or roofs and other similar works, provided that the overall cost of the rehabilitation operations exceeds 25% of the purchase price, if this was carried out during the two years immediately prior to the start of the rehabilitation works, or, otherwise, 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 purchase price or market value of the property. When the value of the land is not known, it will be calculated by prorating the purchase 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 hot water installations that use renewable energy in the habitual residence and intended exclusively for self-consumption and with the deduction for works to improve energy efficiency in residential buildings or single-family homes.

Completion

It will reflect the amount of the investment eligible for deduction and will indicate whether it is or will be your habitual residence.