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Form 100. Personal Income Tax Return 2023

10.4.3. For certain investments to improve the sustainability of the habitual residence

Amount

Taxpayers may deduct 50% of the amount of investments that improve the quality and sustainability of housing, which are made in the property, located in the Balearic Islands, which constitutes or will constitute the habitual residence of the taxpayer, or of a tenant by virtue of a rental contract signed with the taxpayer subject to urban rental legislation.

For these purposes, the following investments are understood to improve the quality and sustainability of housing:

  1. The installation of generating equipment or equipment that allows the use of renewable energies such as solar energy, biomass or geothermal energy that reduces the building's consumption of conventional thermal or electrical energy. This will include the installation of any renewable energy technology, system or equipment, such as solar thermal panels, in order to contribute to the production of hot water required by homes, or the production of hot water for air conditioning installations.

  2. Improvements to supply facilities and the installation of mechanisms that promote water savings, as well as the implementation of separate sanitation networks in the building and other systems that promote the reuse of grey water and rainwater in the same building or on the plot or that reduce the volume of discharge into the public sewerage system.

Deduction base

The basis for the deduction for investments in housing will correspond to the amount actually paid by the taxpayer, with a maximum limit of 10,000 euros per tax period.

General requirements

  1. In order to apply the deduction, the energy efficiency rating of the habitual residence must be improved by at least one level. For this purpose, the registration of the energy efficiency certificates of the home will be required in accordance with the provisions of RD 390/2021 of June 1, which approves the basic procedure for the energy certification of buildings, before and after making the investments.

  2. The total taxable base of the taxpayer may not exceed 33,000 euros in individual taxation, nor 52,800 euros in the case of joint taxation.

Requirements in case of leasing

When the taxpayer is the landlord of the property, the following requirements must also be met:

  • That the duration of the rental contract for the home with the same tenant is equal to or greater than one year.

  • That the deposit of the security referred to in article 36.1 of Law 29/1994, of November 24, on urban leases, has been constituted in favor of the Balearic Housing Institute.

  • That the taxpayer declares in the personal income tax the income derived from the rental income of the home as income from real estate capital.

  • That the taxpayer does not pass on to the tenant the cost of the investments that determine the right to apply this deduction.

Completion

Through a data capture window, the amount paid with the right to deduction will be indicated and the cadastral reference of the property will be transferred by the program to annex B.9 of the declaration.