10.10.15. For investments in the rehabilitation of housing in rural areas to be used for rental purposes

Amount

He 15% of the amounts invested during the tax period in housing rehabilitation actions to be intended for rental.

Requirements and conditions

• That they do not engage in real estate development or housing rental as defined in Article 27 of the Personal Income Tax Law, with rehabilitation or rental being the object of their activity.

• The home must be located in one of the municipalities and smaller local entities where the legal population as of December 31 of the tax year is less than 3,000 inhabitants, as well as in separate population centers that are part of the Census approved by the Autonomous Community of Extremadura for the purposes of tax benefits.

• That the property is intended to be the tenant's habitual residence. The concept of habitual residence will be adjusted to the provisions of the Personal Income Tax Law.

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

  If during this period there are periods in which the property is not actually rented for reasons beyond the landlord's control, but is offered for rent, the deduction will be calculated proportionally to the number of days in the tax period in which the requirements are met.

  A dwelling will be considered to have been offered for rent provided that, during said period, it has been unoccupied and available for lease, has been advertised for rent as a habitual residence on one or more internet real estate portals or in one or more real estate agencies, and both the advertisement and the conditions under which it was offered can be proven, at the request of the Tax Administration, and provided that the price or annual rent offered does not exceed 30 % of the average household income in the municipality where it is located according to the latest data published by the INe on the accrual date.

• Rehabilitation works are considered to be those that comply with the provisions of article 20.One.22 of Law 37/1992, of December 28, on VAT.

In case of non-compliance with the established requirements, the taxpayer must proceed to regularize the deductions previously made in accordance with the terms established in the current Personal Income Tax regulations.

If several taxpayers are entitled to the deduction for the same property and for the same tax period, the amount will be prorated according to the percentage of ownership.

Deduction base

The basis for this deduction will consist of the amounts paid for the rehabilitation of the home and, in the case of external financing, the amortization, the interest, the cost of the instruments for covering the risk of variable interest rates of mortgage loans and other expenses derived from it. 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.

If the right to receive any subsidy or public aid related to the renovation has been granted, the amount of the aid will not be included in the deduction base. If the grant is received in a single payment, its amount will be prorated over the years during which the rehabilitation takes place.

The maximum total deduction base will be 180,000 euros, or the amount of the rehabilitation of the dwelling that gives rise to the deduction if this were smaller.

The maximum applicable base in each fiscal year will be 9,040 euros.

Completion

For each dwelling, it will state:

• The amounts invested in the year by the taxpayer entitled to a deduction.

• The cost of the rehabilitation in the year and the percentage of participation in the ownership of the home will only be completed when two or more taxpayers are entitled to the application of this deduction with respect to the same home and for the same tax period, without it being possible to individualize the cost of the rehabilitation of each co-owner.

• The completion date of the rehabilitation works.

• The days on which the property was actually rented. You must indicate the number of days in the tax period during which the property was actually rented (once the renovation work was completed)

• The days on which the property was offered for rent. You must indicate the days of the tax period in which the property (once the
  (rehabilitation works) was not leased but was offered for the
  rent.

• The cadastral reference of the property. If the property does not have a reference number, mark the box provided for that purpose.