For expenses arising from the adaptation of an empty property for rental as housing

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

Maximum amount and basis of the deduction

The 15 percent of the amounts paid for the repair and conservation work, as well as any other expenses necessary to make the property suitable for rental as a dwelling, including obtaining the energy efficiency certificate and formalizing the lease agreement, in the tax period in which the lease is established.

Clarifications :

1. They are understood as repair and maintenance expenses those defined in Article 13 of the Regulation of IRPFABBR.

2. They are understood to be included in the concept any other expenses necessary to make a property suitable for rental as a dwellingAlong with the costs of obtaining the energy efficiency certificate and formalizing the lease agreement, the management fees, taxes for works, registration of supplies and advertising of the rental.

3. The following will also be deductible: expenses incurred during the period the taxpayer has to lease the property from the completion of the works, discussed below.
The maximum base the deduction will amount to 9,000 euros per home, both in individual and joint taxation and will consist of the amounts justified by an invoice, which must comply with all the conditions established in the Regulation governing invoicing obligations, approved by Royal Decree 1619/2012, of November 30.

The invoice received by the taxpayer must be kept for the duration of the limitation period.

Precision:

In the case of a community of owners, the amounts paid will be charged to the person in whose name the invoice is issued unless it is proven that it has been paid from the income of the co-owners or from the community property.
The maximum annual base the deduction will amount to 3,000 euros per dwelling, both in individual and joint taxation. Amounts paid but not deducted Because the base exceeds this maximum limit, deductions may be made with the same limit in the 2 next exercises.

Important : The maximum base and the maximum annual base of the deduction will be prorated according to the amount paid by each of the homeowners.

In the event that the deduction provided for 2 or 3 dwellings coexists at the same time, the maximum total annual base will rise to 6,000 euros and the amounts paid not deducted because they exceed this amount They may be deducted with the same limit in the 4 next exercises.

Requirements and other conditions for the application of the deduction

The deduction It will only be applicable to properties located in Galicia in which the housing lease provided for in article 2 of Law 29/1994, of November 24, on urban leases.
Real estate they must carry empty for at least one year prior to the start of the works.

The minimum period of one year in which the property must be empty will be calculated from date to date, without prejudice to the fact that during part of the previous tax period the property may not have been considered an empty dwelling.

A property will be considered empty when it is not inhabited, rented, in use or used for economic activities.
The works they must conclude within the maximum period of two years. The completion date will be verified by the date of the invoice issued for the works.
The real estate It must be leased within a maximum period of 6 months from the date of completion of the works.
The lease agreement must have effective duration of at least three .

It is understood this requirement has been met when the initial duration established in the lease agreement was for a period less than the minimum duration of three years (or no duration was stipulated, or it was indeterminate) and with the system of mandatory annual extensions the minimum duration of three years is reached.

However, the right to the deduction will not be lost if the lease term is less than three years, provided that the property is placed in a situation of expectation of rental and is subject to a new housing lease agreement within six months of the termination of the previous agreement, provided that the sum of the duration periods of both lease agreements is equal to or greater than three years.
He worth of the real estate It cannot exceed 250,000 euros.

For these purposes, the value of the property will be taken as the reference value provided for in the regulations governing the real estate cadastre, on the date of accrual of the tax in the tax period in which the works are completed. If there is no reference value or if it cannot be certified by the General Directorate of the Cadastre, the market value will be used as the value.
The tenant of the house It cannot be the spouse or a relative, by blood or by affinity, up to and including the third degree, of the taxpayer.
The taxpayer must declare the NIF of the person or persons providing the services and the total amount paid to each one of them.
The taxpayer must be owner of a maximum of three homesRegardless of where they are located, that can be used for rental, excluding garages and storage rooms and without taking into account their main residence.

Clarifications :

- It will be ensured that the property has the status of a dwelling and regardless of the percentage of participation of the taxpayer, owner or usufructuary.

- In joint taxation The calculation of the maximum number of dwellings must be done per taxpayer.

Outstanding balances to be applied

The application of the deduction may not result in a negative regional tax liability.

This application will take place, provided there is sufficient regional tax liability, once the regional portion of the state deductions and the rest of the regional deductions for the year have been applied.

If, as a result, the taxpayer is unable to apply the deduction in full, The amount not deducted may be deducted in the following four tax years. until its exhaustion, provided that the dwelling remains rented during that period and meets the requirements mentioned above with the sole exception of the requirement that it be empty for at least one year before the start of the works.

If the taxpayer is entitled, in the same tax period, to this deduction and to the deduction "For the rental of empty homes", the one whose amount is lower will be applied first and then the remaining amount until the total of the regional quota is reached.

Important : Once the information necessary for its calculation has been entered by the taxpayers entitled to the deduction, it will be automatically transferred to the section "Additional information to the regional deduction of Galicia for expenses derived from the adaptation of an empty property for rental as housing" of Annex B.15 of the declaration.