10.8.10. For investment in rehabilitation of housing intended for rent
Taxpayers will be able to deduct 15% of the amounts invested in housing rehabilitation projects that involve improving the supply facilities and installing mechanisms that promote water savings, as well as the creation of separate sewage networks in the building that promote the reuse of grey water in the building itself and reduce the volume of discharge into the public sewage system.
Requirements
The concept of housing rehabilitation is included in article 20.1.22.B of Law 37/1992, of December 28, on Value Added Tax, or the law that replaces it.
For the purposes of the provisions of article 20.1.22.B of Law 37/1992, of December 28, on Value Added Tax, building rehabilitation works are those that meet the following requirements:
1. That its main objective is the reconstruction of the same, this requirement being understood to be met when more than 50 percent of the total cost of the rehabilitation project corresponds to works of consolidation or treatment of structural elements, facades or roofs or with works similar or related to those of rehabilitation.
2. That the total cost of the works referred to in the project exceeds 25 percent of the purchase price of the building if it had been carried out during the two years immediately prior to the start of the rehabilitation works or, otherwise, of the market value of the building or part thereof 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 building.
The property must be located in a town in Castilla y León that, at the time of acquisition or rehabilitation, does not exceed:
- 10,000 inhabitants, in general, or
- 3,000 inhabitants if it is less than 30 kilometres from the provincial capital.
As indicated in Order HAC/197/2015, dated March 3 (BOCYL 20-03-2015), the lists of municipalities (from January 1, 2016, towns) that meet the requirements set forth in the regional regulations for the application of tax benefits on transferred taxes over which the Community of Castilla y León has regulatory powers will be updated on January 1 of each year. These lists will be published on the Tax Portal of the Regional Government of Castile and Leon.
The value of the home , for the purposes of the tax levied on the acquisition, must be less than 135,000 euros.
In order to apply the deduction, the following conditions must also be met:
1-That during the five years following the completion of the rehabilitation work, the home is rented to persons other than the spouse, ascendants, descendants or relatives up to the third degree of kinship (both collateral by consanguinity and by affinity) of the owner of the home.
2- That, if during the five years provided for in the previous letter, there are periods in which the dwelling is not effectively rented, the dwelling is offered for rent in accordance with the requirements established by order of the competent department in matters of finance. The deduction may be applied before the property is actually rented, provided that the property is offered for rent in accordance with the instructions issued by the competent department in charge of tax matters in the management of this tax.
3-That the monthly rent amount does not exceed 300 euros. The monthly rent amount will be the rent freely stipulated by the parties, and for the concepts agreed upon. Unless otherwise stipulated in the contract, the general expenses of the home, such as IBI, municipal taxes, community fees, etc., will be borne by the landlord, in accordance with the civil regulations governing the matter; If the transfer of these expenses is agreed in the rental contract, they will be borne by the tenant and will form part of the rental amount.
4-That the legal rental deposit is deposited in accordance with the provisions of the applicable regulations.
Maximum deduction base
The basis for this deduction will be the amounts actually paid by the taxpayer for the rehabilitation work, with a maximum limit of euros both in individual and joint taxation.
Completion
The amounts invested with the right to deduction for each taxpayer will be included in the box provided for this purpose.