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Form 100. Personal Income Tax Declaration 2018

10.8.10. For investment in rehabilitation of homes intended for rent

Taxpayers may deduct 15 percent of the amounts invested in housing rehabilitation actions that involve the improvement of supply facilities and installation of mechanisms that favor water savings, as well as the creation of separate sanitation networks in the building that favor the reuse of gray water in the building itself and reduce the volume of discharge into the public sewage system.


 The concept of housing rehabilitation is that included in article 20.1.22.B of Law 37/1992, of December 28, on Value Added Tax, or regulation 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 object is the reconstruction of the same, this requirement being understood to be fulfilled 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 similar works. or related to rehabilitation.

2. That the total cost of the works to which the project refers exceeds 25 percent of the acquisition price of the building if it had been carried out during the two years immediately prior to the start of the rehabilitation works or, in another case, of the market value of the building or part of it at the time of said beginning. For these purposes, the proportional part corresponding to the land will be deducted from the acquisition price or the market value of the building.

The home 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 kilometers from the capital of the province.

As stated in Order HAC/197/2015, of March 3 (BOCYL 03-20-2015), the lists of municipalities (from January 1, 2016, populations) that comply with the requirements provided for in the regional regulations for the application of tax benefits in the transferred taxes over which the Community of Castilla y León has been assigned regulatory powers. These lists will be published on the Tax Portal of the Junta de Castilla y León.

The value of the home , for the purposes of the tax on the acquisition, must be less than 135,000 euros.

 To apply the deduction, the following conditions must also be met:

 1-That during the five years following the completion of the rehabilitation actions, the home is rented to people other than the spouse, ascendants, descendants or relatives up to the third degree of kinship (both collateral by consanguinity and affinity) of the owner of the property. the House.

 2- That, if during the five years provided for in the previous letter, periods occur in which the home was not effectively rented, the home 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 home is actually rented as long as the home is offered for rent in accordance with the instructions issued by order of the department competent in matters of finance for the management of this tax.

 3-That the monthly rental amount does not exceed 300 euros. The amount of the monthly rent will be the rent freely stipulated by the parties, and for the concepts agreed upon. If the contract does not stipulate otherwise, the general expenses of the home, such as IBI, municipal taxes, community expenses, etc., will be borne by the landlord, in accordance with the civil regulations that regulate the matter; If the impact of these expenses is agreed upon 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 of this deduction will be constituted by the amounts actually paid by the taxpayer to carry out the rehabilitation actions, with the maximum limit of 20,000 euros , both in individual and joint taxation.



The amounts invested with the right to deduction for each taxpayer will be included in the box provided for this purpose.