For the 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 on taxes transferred by the State, approved by Legislative Decree 1/2011, of July 28

Amount of deduction

15% of the amounts paid in the year for the acquisition or rehabilitation of housing.

Requirements and other conditions for the application of the deduction

• The deduction can only be applied for 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 are 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, are considered rehabilitation works those that meet the following requirements:

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

  2. Those whose main objective is the reconstruction of the dwelling by consolidating and treating the structures, facades or roofs and other similar works, provided that the overall cost of the rehabilitation operations exceeds 25% of the purchase price, if this was carried out during the two years immediately prior to the start of the rehabilitation works, or, otherwise, 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 purchase price or market value of the property. When the value of the land is not known, it will be calculated by prorating the purchase cost paid or the market value between the cadastral values of the land and the construction for each year.

  Note: In all matters not expressly established, to determine the concept of rehabilitation works, the provisions of the regulations governing Value Added Tax shall apply (article 3.Six Revised Text of the legal provisions of the Autonomous Community of Galicia on taxes ceded by the State, approved by Legislative Decree 1/2011, of July 28).

Deduction base and maximum deduction base:

• Deduction base

  The basis for the deduction will be 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, the interest, the cost of the instruments for hedging the variable interest rate risk of mortgage loans regulated in article nineteen of Law 36/2003, of November 11, on economic reform measures, and other expenses derived therefrom. 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.

• Maximum deduction base

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

  Otherwise case, the deduction base 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 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 single-family homes” included in numbers thirteen and eighteen of article 5 of Legislative Decree 1/2011.