Example: Deduction for energy rehabilitation works of buildings with predominantly residential use

The community of owners of 23 XXXX Street has carried out a series of works to improve the energy efficiency of the building aimed at saving 50% of the energy consumed and achieving an improvement in the energy rating of the building to obtain a energy class «B». These works consist of improvements in the insulation of the facades, improvements in the thermal envelope, roofs and the breaking of thermal bridges, as well as the integration of renewable energy systems or installations into the building.

The works, which will be paid by all owners (including commercial premises, homes and garages) according to their participation fee, begin in December 2023 and will end in April 2024. A loan has been requested to carry out the indicated works, which will be paid by the owners through monthly receipts. Once this financing has been obtained, the community of owners will make three payments for the improvement works. A first payment on December 1, 2023 by nominative check, appearing on the invoice issued by the contractor as "Certification on account of the energy efficiency improvement work contract", and two other payments that will be paid to the contractor on December 1, 2023. March and May 1, 2024, respectively.

The couple formed by Mr. JG and Mrs. TK, married in a legal community regime, are owners of a home located in said community (their habitual residence) and due to the coefficient of participation in said community, they are entitled to the amounts paid (including the issuance of the energy efficiency certificates), 8,000 euros of the first payment and 2,000 euros in the other two payments that will be paid by the Community of Owners to the contractor on March 1 and May 1, 2024.

The corresponding energy efficiency certificates were issued before and after the works. The latter will be issued on May 20, 2024 and will mean the qualification of the home as energy class "B".

Determine the amount of the deduction that can be made in 2023, 2024 and 2025 whether they opt for an individual or joint declaration, and the excesses that can be deducted in the following years.

Solution:

Year 2023

They will not have the right to make the deduction.

The reason is that, despite having paid amounts in 2023 for carrying out the works, in this tax period the certificate has not been issued but rather it is issued in a later tax period (2024), therefore the deduction will be made in said subsequent tax period (2024), taking into consideration in this case the amounts paid on December 1, 2023 (8,000 euros) and those paid on March 1 and May 1, 2024 (2,000 euros in each of them).

Year 2024

Don JG:

Deduction base: (8,000 euros + 4,000 euros) ÷ 2 = 6,000
Maximum base: 5,000
Deduction amount = 5,000 x 60% = 3,000
Remainder of deduction base, deductible in the following four years: 6,000 – 5,000 = 1,000 euros
Accumulated basis: 15,000 – 5,000 = 10,000

Mrs. TK

Deduction base: (8,000 euros + 4,000 euros) ÷ 2 = 6,000
Maximum base = 5,000 euros
Deduction amount = 5,000 x 60% = 3,000
Remainder of deduction base, deductible in the following four years: 6,000 – 5,000 = 1,000 euros
Accumulated basis: 15,000 – 5,000 = 10,000

Joint JG and TK

Deduction base: 12,000 euros
Maximum base = 5,000 euros
Deduction amount = 5,000 x 60% = 3,000
Remainder of deduction base, deductible in the following four years: 12,000 – 5,000 = 7,000 euros
Accumulated basis: 15,000 – 5,000 = 10,000

Year 2025

A. Yes Don JG and Doña TK They present individual declaration in that fiscal year 2025

When in 2024 they presented individual declaration
- Pending amounts 2023: 1,000
- Maximum deduction base (the lesser of):
  
  - Maximum annual base per declaration: 5,000
  
  - Accumulated base: 10,000
  
  - Amounts pending deduction: 1,000
- Deduction amount = 1,000 x 60% = 600
- Pending remainder = 0
When in 2024 they presented a joint declaration
- Pending amounts 2023: 7,000 euros ÷ 2 = 3,500
- Maximum deduction base (the lesser of):
  
  - Maximum annual base per declaration: 5,000
  
  - Accumulated base: 10,000
  
  - Amounts pending deduction: 3,500
- Deduction amount = 3,500 x 60% = 2,100
- Pending remainder = 0

B. Yes Don JG and Doña TK present joint declaration in 2025

When in 2024 they presented individual declaration
- Pending amounts 2023: 1,000 x 2 = 2,000
- Maximum deduction base (the lesser of):
  
  - Maximum annual base per declaration: 5,000
  
  - Accumulated base [15,000 - 5,000 individual JG - 5,000 individual TK] = 5,000
  
  - Amounts pending deduction: 2,000
- Deduction amount = 2,000 x 60% =1,200
- Pending remainder = 0
When in 2024 they presented joint declaration
- Pending amounts 2023: 7,000 euros
- Maximum deduction base (the lesser of):
  
  - Maximum annual base per declaration: 5,000
  
  - Accumulated base: 10,000
  
  - Amounts pending deduction: 7,000
- Deduction amount = 5,000 x 60% = 3,000
- Pending remainder = (7,000 - 5,000) = 2,000
- Accumulated basis: 10,000 – 5,000 = 5,000
Note: The amounts paid not deducted due to exceeding the maximum annual deduction base (2,000 euros) may be deducted in the year 2026.