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

Attention : Due to the approval and subsequent repeal of Decree Law 2/2024, this deduction will only be applicable to taxpayers who died between October 26 and November 21, 2024.

Regulations: Art. 9 ter Consolidated Text of the legal provisions of the Autonomous Community of Extremadura regarding taxes ceded by the State, approved by Legislative Decree 1/2018, of April 10

Amount of the deduction:

15% of the amounts invested during the tax period in rehabilitation works of homes in rural areas to be used for rental .

The following will be considered rehabilitation works those that comply with the provisions of article 20.One.22 of the VAT.

Base of the deduction and maximum base

• The base of this deduction will consist of the amounts paid for the renovation of the home , including the expenses incurred by the landlord and, in the case of external financing, the amortization, the interest, the cost of the instruments covering the variable interest rate risk of the 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 from the application of the aforementioned instrument.

• The maximum total base of the deduction will be 180,000 euros or the amount of the rehabilitation of the home that gives rise to the deduction, if this is lower.

  The maximum base of 180,000 euros is established per taxpayer and dwelling .

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

  The maximum base applicable in each fiscal year is 9,040 euros per declaration , regardless of the number of homes that qualify for the deduction.

Requirements for applying the deduction

• That they are not engaged in real estate development or the leasing of homes under the terms of article 27 ## of the Personal Income Tax Law , with rehabilitation or leasing being the object of their activity.

• That the home is located in one of the municipalities and minor local entities in which the legal population as of December 31 of the accrual year is less than 3,000 inhabitants, as well as in differentiated population centers that are part of the Census approved by the Autonomous Community of Extremadura for the purposes of tax benefits.

  You can consult the municipalities and minor local entities with a population of less than 3,000 inhabitants and the differentiated population centers that are none of the above and that belong to a municipality with more than 3,000 inhabitants and their scattered ones in the links indicated at the end of this section.

• That the property is intended to be the habitual residence of the tenant .

  The concept of habitual residence will be adjusted to the provisions of the Twenty-Third Additional Provision of the Income Tax Law .

• That during the five years following the completion of the rehabilitation works the home is rented to persons other than the spouse, ascendants, descendants or relatives up to the third degree of kinship of the owner of the home, without prejudice to the provisions of the following point.

  The limit must be understood to be established both for relationships of kinship by consanguinity and by affinity.

• If during the five years provided for in the previous point there are periods in which the property is not effectively rented for reasons not attributable to the landlord, but is offered for rent ## , the deduction provided for in this article will be calculated in proportion to the number of days in the tax period in which the requirements indicated above are met.

  It will be understood that the property has been offered for rent provided that, during said period, it has been unoccupied and available for rent, being offered during said period for rent as a habitual residence in one or several real estate agencies or real estate portals on the Internet, and may have proof of said advertisement, a circumstance that must be accredited at the request of the Administration.

Other conditions for the application of the deduction

When two or more taxpayers are entitled to apply this deduction on the same home and for the same tax period , its amount will be prorated between them according to the percentage of ownership.

Loss of the right to deductions made

Failure comply established requirements entails the loss of the tax benefit and taxpayer must include in the tax return for year in which the failure occurred the portion of the tax that was not paid as a result of the deduction made together with the corresponding late payment interest.

Important: Once the information required for the calculation of the deduction has been entered by the taxpayers entitled to it, its amount will appear in box [ 1020 ] of Annex B.5 of the declaration, "Other deductions".

" Municipalities and smaller local entities with a population of less than 3,000 inhabitants ".