Tax exemption for energy rehabilitation projects in buildings

May 4, 2022 | Regulatory Framework

Regulatory Framework NameTax exemption for energy rehabilitation projects in buildings
Regulatory Framework DescriptionThe government has approved the Royal Decree-Law 19/2021, October 5, on urgent measures to promote building rehabilitation activity in the context of the Recovery, Transformation and Resilience Plan with the aim of meeting national objectives in terms of rehabilitation and to have a more efficient housing stock. One of the measures contained in this regulatory package is the introduction of new deductions in Personal Income Tax (IRPF) for energy efficiency improvement projects in homes and residential buildings. These deductions, which will be in force from the same day of publication of the Royal Decree-Law in the Official State Gazette (BOE), will be applied to the quantity invested in rehabilitation works that contribute to achieving certain improvements in the energy efficiency in residential buildings, accredited through energy efficiency certificates. The measure is financed by the Recovery and Resilience Mechanism (MRR) approved by the European Union and is part of the investment C02.I01 of the PRTR, "Rehabilitation program for economic and social recovery in residential settings", endowed with 3,420 million euros, of which 450 million will be allocated initially to finance tax incentives. Specifically this measure is part of the Action Line 3 " Creation of an favorable environment for the rehabilitation activity " of the component C02.I02 of the Recovery, Transformation and Resilience Plan. The specific tax reductions will be applied in the following cases: -20% reduction for actions that reduce the demand for heating and cooling in habitual residence by 7%. -Deduction of 40% for actions that reduce the consumption of non-renewable primary energy by 30%, or improve the energy rating reaching the letters "A" or "B" in habitual residence. -60% reduction for actions that reduce non-renewable primary energy consumption by 30%, or improve the rating reaching the letters "A" or "B" in residential buildings.
Country of ImplementationSpain
Regulatory Framework Referencehttps://www.mitma.gob.es/el-ministerio/sala-de-prensa/noticias/mar-05102021-1543

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