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Practical Guide to Income Tax 2025. Part 2. Autonomous community deductions

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

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 .

They will be considered as rehabilitation works those that comply with the provisions of Article 20.One.22 of the Law of VAT.

Base of the deduction and maximum base

  • The base This deduction will consist of the amounts paid for the rehabilitation of the houseand, in the case of external financing, the amortization, the interest, the cost of the instruments for hedging the risk of variable interest rates 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.

  • The maximum total base of the deduction, per taxpayer and rehabilitated housing, will be of 180,000 eurosor the cost of home rehabilitation which gives rise to the deduction, if this were less.

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

Important : in the event that the right to receive any payment had been recognized grant either public aid related to rehabilitation, its amount It will not form part of the deduction base.

The following subtraction will be performed:

- he total of the grant or aid, of the total investment, to calculate the maximum total deduction base and to the result, where applicable, apply the limit of 180,000 euros;

- he amount of the grant or aid perceived in the exercise, of the investment made in the year, to determine the maximum base applicable in the exercise and to the result, if applicable, apply the limit of 9,040 euros.

If the grant is received in a single payment, its amount will be prorated over the years in which the rehabilitation takes place.

Requirements for applying the deduction

  • That do not engage in real estate development or housing rentals in the terms of the Article 27 of the Law of PIT, with rehabilitation or rental being the object of its 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.

    Can consult the municipalities and smaller local entities with a population of less than 3,000 inhabitants and the distinct population centers that are none of the above and that belong to a municipality of more than 3,000 inhabitants and its scattered settlements 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 main residenceIt will comply with the provisions of the Twenty-Third Additional Provision of the Law of PIT.

  • 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 is therefore necessary that the taxpayer declare in the PIT returns on real estate capital for the rental of the dwelling.

    It will be understood that the dwelling has been offered for rent provided that, during said period, it has been unoccupied and available for rent, 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, being able to prove both the advertisement and the conditions in which it was offered, at the request of the Tax Administration, and without the price or annual rent offered being able to exceed 30 percent of the average income of households in the municipality in which it is located according to the latest data published by the INE on the accrual date.

Other conditions for the application of the deduction

When two or more taxpayers are entitled to the application from this deduction regarding a same house and for a same tax period, the cost of rehabilitation will be prorated among them according to the percentage of ownership, unless a different distribution of said cost is proven.

Loss of the right to deductions made

In the event 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 regulations of IRPFABBR.

Municipalities with fewer than 3,000 inhabitants(104 KB - pdf)
Minor local entities(434 KB - pdf)
Census of population centers(194 KB - pdf)