10.10.15. For investments in the rehabilitation of housing in rural areas to be used for rental purposes

This deduction is only applicable to taxpayers who died between 10/26/2024 and 11/21/2024.

Amount

The 15 % of the amounts invested during the tax period in housing rehabilitation projects to be used for rental purposes.

Requirements and conditions

• They must not be engaged in real estate development or the leasing of homes under the terms of Article 27 of the Personal Income Tax Law, with renovation or leasing being the object of their activity.

• The home must be located in one of the municipalities and smaller local entities where the legal population as of December 31 of the tax year is less than 3,000 inhabitants, as well as in separate population centers that are part of the Census approved by the Autonomous Community of Extremadura for the purposes of tax benefits.

• That the property is intended to be the tenant's habitual residence.

• 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 of the owner of the home. If during this period there are periods in which the property is not actually rented for reasons beyond the landlord's control, but is offered for rent, the deduction will be calculated proportionally to the number of days in the tax period in which the requirements are met.

• Rehabilitation works are considered to be those that comply with the provisions of article 20.One.22 of Law 37/1992, of December 28, on VAT.

Failure to comply with these requirements entails the loss of the tax benefit, and the taxpayer must include in the tax return for the fiscal year in which the non-compliance occurred the portion of the tax that was not paid as a result of the deduction taken, along with the corresponding late payment interest.

If several taxpayers are entitled to the deduction for the same property and for the same tax period, the amount will be prorated according to the percentage of ownership.

Deduction base

The basis for this deduction will be the amounts paid for the renovation of the home, including the expenses incurred by the landlord and, in the case of external financing, the amortization, interest, and the cost of the variable interest rate risk hedging instruments on mortgage loans. In the event of application of the aforementioned hedging instruments, the interest paid by the taxpayer will be reduced by the amounts obtained from the application of the aforementioned instrument.

If the right to receive any subsidy or public aid related to the renovation has been granted, the amount of the aid will not be included in the deduction base.

The maximum total deduction base will be 180,000 euros, or the amount of the renovation of the home that gives rise to the deduction, if lower.

The maximum base applicable in each fiscal year will be 9,040 euros.

Completion

You will record the amount paid and the number of days with the right to deduction. 

The amount of this deduction and the deduction for landlords of vacant homes will be reflected in the other deductions box.