10.8.11. For investment in rehabilitation of housing intended for rent

Amount

Taxpayers will be able to deduct 15% of the amounts invested in housing rehabilitation projects.

Requirements

1. The concept of housing rehabilitation is included in article 20.1.22.B of Law 37/1992, of December 28, on Value Added Tax, or the law that replaces it.

   For the purposes of the provisions of said article, building rehabilitation works are those that meet the following requirements:

   • That its main objective is the reconstruction of the same, understanding that this requirement is met when more than 50% of the total cost of the rehabilitation project corresponds to works of consolidation or treatment of structural elements, facades or roofs or with works similar or related to those of rehabilitation.

   • That the total cost of the works referred to in the project exceeds 25% of the purchase price of the building if it had been carried out during the two years immediately prior to the start of the rehabilitation works or, otherwise, of the market value of the building or part thereof 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 building.

2. The property must be located in a municipality or a minor local entity of the Community of Castilla y León that at the time of acquisition or rehabilitation does not exceed 10,000 inhabitants in general or 3,000 inhabitants if it is less than 30 kilometers from the provincial capital.

3. The value of the property, for the purposes of the tax levied on the acquisition, must be less than 150,000 euros.

Other conditions for the application of the deduction:

• That during the five years following the completion of the rehabilitation work, the home is rented to persons other than the spouse, ascendants, descendants or relatives up to the third degree of kinship (both collateral by consanguinity and by affinity) of the owner of the home.

• That, if during the five years provided for in the previous letter, there are periods in which the property is not actually rented, the property is offered for rent. With effect from 12 July 2019, Order EYH/668/2019 establishes the requirements that rehabilitated housing must meet to be considered as being offered for rent:

  • The lease must be advertised or announced through one of the following means: signs on the property itself, advertising media including specific Internet portals, real estate agencies and real estate agents.

  • Properties offered for rent may not be actually occupied during the period of time in which they are offered for rent. The consumption of supplies associated with the use of the home, such as electricity, water, gas and/or telephone, must show that the home is not occupied during this period of time.

• That the monthly rent amount does not exceed 300 euros. The monthly rent amount will be the rent freely stipulated by the parties, and for the concepts agreed upon. Unless otherwise stipulated in the contract, the general expenses of the home, such as IBI, municipal taxes, community fees, etc., will be borne by the landlord, in accordance with the civil regulations governing the matter; If the transfer of these expenses is agreed in the rental contract, they will be borne by the tenant and will form part of the rental amount.

• That the legal rental deposit is deposited in accordance with the provisions of the applicable regulations.

Maximum deduction base

The basis for this deduction will be the amounts actually paid by the taxpayer for the rehabilitation work, with a maximum limit of 20,000 euros, both in individual and joint taxation.

Completion

The amounts invested with the right to deduction will be included in the box provided for this purpose.