For acquisition and rehabilitation of housing in model village projects

Regulations: Art. 5. Twenty Consolidated Text of the legal provisions of the Autonomous Community of Galicia regarding taxes transferred by the State, approved by Legislative Decree 1/2011, of July 28

Deduction amount

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

Requirements and other conditions for the application of the deduction

• The deduction can only be applied for the amounts paid in the year:

  1. In the case of home acquisition, for homes acquired after January 1, 2021 .

  2. In the case of housing rehabilitation, for rehabilitation works started on or after 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 .

• For the purposes of the deduction, rehabilitation works are considered to be those that meet the following requirements:

  1. That they have the corresponding permits and administrative authorizations.

  2. 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.

  Note: In everything that is not expressly established, to determine the concept of rehabilitation works, the provisions of the regulations governing the Value Added Tax will apply (article 3.Six Consolidated Text of the legal provisions of the Autonomous Community of Galicia regarding taxes transferred by the State, approved by Legislative Decree 1/2011, of July 28).

Base of deduction and maximum base of deduction:

• Deduction base

  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 interest paid by the taxpayer will be reduced by the amounts obtained by the application of the aforementioned instrument.

• Maximum base of the deduction

  In the case of constructions intended to constitute the habitual residence of the taxpayers, the base of this deduction may not exceed 9,000 euros per year , both in individual and joint taxation.

  In another case , the base of the deduction may not exceed 4,500 euros per year , both in individual and joint taxation.

Incompatibility

This deduction is incompatible with the deductions “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 “for works to improve energy efficiency in residential buildings or homes single-family homes” included in numbers thirteen and eighteen of article 5 of Legislative Decree 1/2011.