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Practical manual for Income Tax 2020.

For the amounts invested in rehabilitation works of the habitual residence

Regulations: First transitional provision.a) Law 10/2017, of October 27, consolidating the legal provisions of the Autonomous Community of La Rioja regarding own taxes and transferred taxes.

Amount of deduction

  • 5% of the amounts paid in the year when the following circumstances occur:

    1. That is allocated to the rehabilitation of a home
    2. That the home, located in the Autonomous Community of La Rioja, constitutes or will constitute the habitual residence of the taxpayer ##
    3. That these are taxpayers who are considered "young", being understood as such taxpayers who have not reached 36 years of age at the end of tax period (normally, December 31).

  • 7% of the amounts paid in fiscal year when, given the above circumstances, the general taxable base of the taxpayer subject to taxation, according to article 56 of the Personal Income Tax , n or exceeds of the following amounts:

    • 18,030 euros in individual declaration .
    • 30,050 euros in joint declaration .

    Provided that, in addition, the taxable savings base subject to taxation, according to article 56 of the Personal Income Tax Law , does not exceed 1,800 euros .

    The general taxable base subject to taxation according to article 56 of the Personal Income Tax Law is the result of reducing the amount reflected in box [0505] of the declaration by the amount of the personal and family minimum that forms part of the aforementioned general taxable base and that appears reflected in box [ 0521 ] of the declaration.

    For its part, the taxable savings base subject to taxation according to article 56 of the Personal Income Tax Law is the result of reducing the amount shown in box [ 0510 ] of the declaration by the amount of the personal and family minimum that forms part of the aforementioned taxable savings base and which, where applicable, will appear reflected in box [ 0522 ] of the declaration.

  • 2% of the amounts invested in fiscal year by the rest of the taxpayers (those aged 36 or over at the end of the tax period) in the rehabilitation of that home which, located in the Autonomous Community of La Rioja, constitutes or will constitute their habitual residence.

Important: The different percentages are incompatible with each other.

Requirements and other conditions for the application of the deduction

  • Only taxpayers who paid amounts prior to January 1, 2013 for renovation work on their habitual residence will be entitled to the deduction, provided that the work was completed before January 1, 2017.

    In any case, it will be necessary for the taxpayer to have applied the deduction for rehabilitation of a habitual residence in a tax period accrued before January 1, 2013, unless they have not been able to apply it yet because the amount invested in it has not exceeded the amounts invested in previous homes, to the extent that they have been subject to deduction and, where applicable, the amount of exempt capital gains due to reinvestment.

    Therefore, the same criteria established by the eighteenth transitional provision of the Income Law are required to be eligible to apply the transitional regime of the state deduction for rehabilitation works on habitual residence.

  • In addition, all the requirements established, in general, in the state regulations governing Personal Income Tax must be met, in its version in force on December 31, 2012, on the concepts of habitual residence, its rehabilitation and elements that make up the basis of the applicable deduction, as well as on verification of the taxpayer's financial situation at the end of the tax period.
  • The maximum base for this deduction, together with that for works to adapt a habitual residence for people with disabilities, is set at 9,040 euros .
  • In case of joint taxation , only taxpayers integrated into the family unit who are considered "young" in the terms discussed above will be able to benefit from the deduction of 5 or 7 percent, for the amounts actually invested by them, without prejudice to the other taxpayer with habitual residence in the Autonomous Community of La Rioja having the right to apply the general deduction percentage of 2 percent.

  • In order to apply this deduction, regardless of the taxpayer who benefits from the measure, it is required that the verified amount of the taxpayer's assets at the end of the tax period exceeds the value shown by its verification at the beginning of the same by at least the amount of the investments made , without taking into account interest and other financing costs.

    For these purposes, increases or decreases in value experienced during the tax period by assets that at the end of the period continue to form part of the taxpayer's assets will not be computed, nor will the increase in assets obtained by taxable events subject to the Inheritance and Gift Tax.

Note: Those young people who had acquired or renovated their home before 1 January 2013 must continue to apply this deduction instead of the deduction for investment in the habitual residence of young people under 36 years of age, which is incompatible with this deduction.