Tax deductions for home improvements


This is the big question, is it possible to deduct the aid for the renovation of the main residence?

As we know, the tax law is not rigid but evolves and changes over the years or even every year in certain aspects. One of them has been the deductions for reforms of the habitual residence, which has been one of the most changing, which disappeared in 2013 and was recovered with the aim of encouraging taxpayers to carry out works in their homes to improve their energy efficiency.

That if, not all reforms are deductible, here we are going to tell you what they are:


This deduction is structured around three types of works:

For improvement works that reduce the demand for heating and cooling.

Deduction of 20% for works that reduce by 7% the demand for heating and cooling in the main residence. This deduction percentage is applied on the amounts paid for works carried out, up to a maximum of 5,000€ per dwelling.

Its period of application extends until December 31, 2023, and very important! it must be the taxpayer's main residence, or it must be destined or will be destined to be rented as a main residence.

Deduction for improvement works that reduce the consumption of non-renewable primary energy.

This applies to works that reduce 30% of the non-renewable primary energy consumption, or improve the energy rating reaching the letters "A" or "B" in the main residence.

The percentage to be deducted is 40% of the work up to a maximum of 7,500€ per dwelling.

Deduction for energy rehabilitation works in buildings

Deductions on actions that reduce by 30% the consumption of non-renewable primary energy, or improve the energy rating, reaching the letters "A" or "B" in buildings of predominantly residential use.

This deduction is up to 60% of the money invested and a maximum of 5,000€ per dwelling per year and 15,000€ in total.

Its period extends until December 31, 2024.

However, it is important to bear in mind that the deduction will only be applied in the tax periods 2021, 2022 and 2023 in relation to the amounts paid in each one of them. There is an essential requirement. Before the end of the tax period in which the deduction is to be taken, the corresponding energy efficiency certificate must have been issued.

Which reforms are not deductible?

All those that have an object different from improving the energy efficiency of the habitual residence, such as:
-Conservation and repair expenses, such as painting, arrangement of installations....
-Heating installations, elevators, security doors and others.
-Garage spaces acquired with the dwelling, as long as they exceed two.
-Reforms in gardens, parks, swimming pools, common areas...

Clarifications for tax deductions for the renovation of the main residence

-In the deductions of 20% and 40%, it will only be applicable in the amounts paid for the improvement of houses of habitual use, not for parts destined to economic activity, parking spaces, landscaped zones, lumber rooms, swimming pools...
-The deductions are not cumulative.
-The deductions of 20% and 40% are only applicable to the houses and not to the works in the improvements of buildings.
-The deductions of 60% will be applicable only to buildings of predominantly residential use.