Temporal, subjective and objective scopes of the deduction

Time scope of the deduction and tax period in which the deduction is applied

The deduction applies to amounts paid since October 6, 2021 until December 31, 2025 for works carried out during said period that meet the conditions and requirements indicated in the following sections.

However, the deduction will be applied in the tax period in which the energy efficiency certificate issued the works have been completed is issued.

Even though amounts have been paid for the works carried out, the Law of PIT does not allow the deduction of such amounts in subsequent years due to insufficient full quota. Therefore, if the taxpayer's total tax liability is zero in the fiscal year in which the energy efficiency certificate is issued, the deduction will not apply.

When certificate issued in a tax period subsequent to that in which amounts were paid for such works, the deduction will be applied in said subsequent tax period taking into consideration the amounts paid from October 6, 2021 (date of entry into force of Royal Decree-Law 19/2021, of October 5, on urgent measures to promote building rehabilitation activity in the context of the Recovery, Transformation and Resilience Plan), until December 31 of the tax period in which the certificate is issued.

Therefore, the deduction will be applied in 2025 when the certificate issued after the completion of the works is issued in 2025.

Remember: Both this deduction and the deduction for improvement works that reduce the consumption of non-renewable primary energy will be applied in the tax period in which the energy efficiency certificate issued after the works were carried out is issued, regardless of the year in which the amounts were paid or the work was carried out. Therefore, in cases where the energy efficiency certificate issued after the completion of the works was issued in 2025, it must include, where applicable, the amounts paid since October 6, 2021 in the box [1660].

Objective scope of the deduction

A. Type of housing that entitles you to the deduction

The following homes are eligible for deduction if they are carried out to reduce the heating and cooling demand:

The taxpayer's habitual residence
Any other dwelling owned by the taxpayer that is rented out for use as a dwelling at that time or is expected to be rented, provided that, in the latter case, the dwelling is rented out before December 31, 2027.

It is considered that this is a lease of a property for use as a dwelling when, in accordance with the provisions of article 2 of Law 29/1994, of November 24, on Urban Leases (LAU), the lease falls on "a habitable building whose primary purpose is to satisfy the tenant's permanent housing need."

Note: Likewise, this deduction may be applied to works carried out on single-family homes.

Works carried out in:

The parts of the dwellings affected by an economic activity.
Parking spaces, storage rooms, gardens, parks, swimming pools and sports facilities and other similar elements.
Homes available to their owners (second homes) that are not rented or expected to be rented (although in the latter case, if the home is not rented before December 31, 2027, they are also excluded from the possibility of applying the deduction).

Note: This deduction is not applicable to new-build or newly constructed homes, since, in these cases, there is no energy efficiency certificate prior to the construction and another subsequent to the construction, as required by law, and the corresponding reduction cannot be accredited compared to the previous situation.

A different situation is that of newly built homes in which works are carried out that improve the energy efficiency rating stated in the certificate of completion (initial certificate), and a certificate exists after the completion of the works. In this case, if the required requirements are met, the person will be entitled to the corresponding deduction.

B. Improvement works that give the right to the deduction

The works that allow you to benefit from the deduction are those carried out from October 6, 2021 to December 31, 2025for the reduction of heating and cooling demand.

Heating and cooling energy demand is the energy required to maintain the internal comfort conditions of the building.

For these purposes, it will be understood that the heating and cooling demand of the home has been reduced when the sum of the heating and cooling demand indicators in the energy efficiency certificate issued by the competent technician after the works were carried out is reduced by at least 7% compared to the one issued before the start of the works.

Note: Please note that ## amounts paid corresponding to costs relating to the installation or replacement of equipment that uses fossil fuels are not eligible for deduction.
To prove compliance with the requirements for applying this deduction, the efficiency certificates issued before and after the works will be necessary.

Energy efficiency certificates issued before the start of work will be valid to prove compliance with the requirements provided that a period of two years has not elapsed between the date of issue and the date of start of work.

If the energy certificate prior to the execution of the works, issued in the two years prior to the start date of the works, has not been registered in the corresponding register of energy certificates , having elapsed the period established in the regulations for said registration, the deduction does not apply. If this period has not elapsed, the aforementioned deduction will not apply until the issued certificate is registered.

It is also not possible to prove the energy efficiency of the home prior to the works by means of a certificate issued after the works.

The energy efficiency certificates issued after the completion of the works determine the tax period in which the deduction is made and must be issued in 2025.

Although the deduction is generated in the tax period in which the energy certificate is issued, until the certificate is registered in the corresponding registry, the taxpayer will not be able to apply the deduction. Consequently, if it is issued in 2024 and registered in 2025, the right to the deduction will have been generated in 2024, regardless of whether the registration takes place in 2025.

Note: Certificates are the only means established by the Law of PIT to prove the reduction or improvement. Therefore, if the corresponding certificate is not available prior to the start of the works or the one issued by the competent technician after the works have finished, compliance with the required requirements is not accredited and, consequently, the deduction cannot be applied.
In any case, energy efficiency certificates must have been issued and registered in accordance with the provisions of Royal Decree 390/2021, of June 1, which approves the basic procedure for the certification of the energy efficiency of buildings.

Note: Taxpayers entitled to this deduction must complete the corresponding section of the form. Annex A.3 from the declaration the information requested about the property,the NIF or NIE of the person or entity that carried out the works,the dates of the energy efficiency certificates before and after the works, as well as the energy demand for heating and cooling shown in each of them, data that can be extracted fromthe sum of the global heating and cooling demand indicators contained in section 3 of Annex II of each of the certificates, and the amounts paid.

Subjective scope of deduction

taxpayers who hold the title of owner of the property is the subject of such works may apply this deduction.

Each co-owner of the home may claim a deduction for the amounts paid for the works in the part that proportionally corresponds to their percentage of ownership in the habitual residence, regardless of whether the invoice for the works was issued solely in the name of one of the co-owners of the home.

Therefore, the bare owners, usufructuaries and tenants are excluded.