Income taxincome tax The personal income tax (IRPF in Spain): what people pay on what they earn from work, business or savings. deductions and aid to renovate buildings

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1. It creates three income tax (IRPFIRPF Impuesto sobre la Renta de las Personas Físicas: Spain's personal income tax, paid on income such as wages or rental income.) deductions for works that improve the energy efficiency of a main home or a rented home. The first allows a deduction of up to 20% of the money spent, with a maximum of 5,000 euros per year, if heating and cooling demand drops by at least 7%. The works must be done from the entry into force of the rule until December 31, 2022.
2. The second deduction reaches up to 40% of the money spent, with a maximum of 7,500 euros per year, if non-renewable primary energy use drops by at least 30% or the home reaches energy class A or B. The deadline and conditions are the same as for the first deduction.
3. The third deduction, 60% with a maximum of 15,000 euros, applies to energy renovation works in buildings mainly used as homes, until December 31, 2023. It requires cutting the building's non-renewable primary energy use by at least 30% or reaching energy class A or B.
4. Public aid under the housing rehabilitation and social housing programs of Real Decreto 853/2021 is not included in the income tax base, meaning it is not taxed.
5. It makes it easier for homeowners' associations to approve energy efficiency works or common renewable energy installations by simple majority, and to apply for aid or financing for them. The cost of these works or of the loans to pay for them counts as a general expense.
6. It creates a State guarantee line so that banks can offer loans of up to fifteen years for renovation works that improve the energy efficiency of residential buildings. The maximum amount of the guarantees is 1,100 million euros.

Who it affects

• Homeowners: They can deduct part of the money spent on energy improvement works from their income tax.
• Landlords and tenants: The deductions also apply to rented homes, if they are rented before December 31, 2023.
• Homeowners' associations: They can approve these works and seek financing by simple majority, and access the guarantee line.
• Credit institutions: They can offer loans of up to fifteen years partially covered by State guarantees.

Words worth knowing

IRPF

Impuesto sobre la Renta de las Personas Físicas: Spain's personal income tax, paid on income such as wages or rental income.

Deducción

Deduction: an amount subtracted from the tax owed, in this case for spending money on renovation works.

Certificado de eficiencia energética

Energy performance certificate: an official document showing how much energy a building or home uses, with grades from A (best) to G (worst).

Energía primaria no renovable

Non-renewable primary energy: energy from sources that do not regenerate, such as coal, gas or oil.

Aval

Guarantee: if the borrower does not repay, the State partially answers in their place.

income tax

The personal income tax (IRPF in Spain): what people pay on what they earn from work, business or savings.

It summarizes the law as published in the BOE. It is written by artificial intelligence and may contain mistakes: the official text is what counts. Read the official text · How we make summaries