Personal income tax deductions under the new law on housing renovation

As reported by Europa Press for the real estate portal idealista.com, the Spanish Senate has approved the draft Law on urgent measures to boost residential building refurbishment activity.

This new legislation introduces income tax deductions for energy efficiency improvement works and improves the regulatory framework for the application of aid programmes. 450 million of funding from the Recovery, Transformation and Resilience Plan is available for these programmes.

The deductions that can be taken under the Law on urgent measures to boost residential building renovation activity range from 20% for actions that reduce heating and cooling demand in primary residences by 7% or 40% for actions that reduce the consumption of non-renewable primary energy in primary residences by 30%.

The most important deduction (up to 60%) of this new law will derive from actions that reduce non-renewable primary energy consumption by 30% or improve the rating by achieving the letters 'A' or 'B' in residential buildings.

Developments in taxation and financing

In terms of taxation, according to idealista.com, "the treatment of rehabilitation aid is also improved, as it will not be included in the IRPF tax base when it has been granted through different aid programmes, as the Ministry of Transport, Mobility and Urban Agenda (Mitma) reminds us".

In relation to financing, the Law on urgent measures to boost residential building renovation activity approves "the creation of a line of guarantees of up to 1.1 billion euros, through the Official Credit Institute (ICO)", for partial coverage by the State of the financing of works that contribute to improving energy efficiency.

"The law has also introduced improvements to facilitate decision-making in homeowners' associations and strengthens the capacity of homeowners' associations to access credit for building renovation and improvement works," the statement reads.

Draft Law on Architectural Quality approved

In the same vein, the Senate has also unanimously approved the draft Law on the Quality of Architecture. "This legislation aims to protect, promote and foster the quality of architecture as a good of general interest", as reported by Europa Press.

This new regulation contemplates the creation of the House of Architecture, which will serve to bring the values of architecture closer to society as a tool of cultural diplomacy, and the Council for the Quality of Architecture, a platform for exchange between institutions and associations linked to the dissemination of architecture.

Furthermore, it also provides for the creation of a catalogue of architectural works of interest to serve as a guide for public administrations. This new Law on Architectural Quality is included in the Plan for Recovery, Transformation and Resilience (PRTR) and is in line with European initiatives aimed at preserving Europe's cultural heritage.

Original article: idealista.com. Photo by Borko Manigoda on Pixabay