The Council of Ministers has approved a Decree-law on urgent measures to promote the refurbishment of buildings. This new law provides for the following deductions:
Income Tax deductions for works to improve the energy efficiency of residential properties and buildings. The deductions will apply to amounts spent on refurbishment works for main residences and residential buildings that will help to achieve improvements in their energy efficiency.
This measure is funded by the European Union and forms part of the Programme of refurbishment for financial and social recovery in residential environments with funding of 3,420 million Euros.
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Deductions for the refurbishment
In particular, it introduces three deductions.
Work carried out to reduce heating and cooling demand.
- 20% deduction.
- Up to 5,000 Euros per property to be deducted in the financial year when the final energy certificate is granted.
- Condition: Achieving a minimum reduction of 7% in the heating and cooling indicators, according to the energy efficiency certificate.
Work carried out to improve the consumption of primary, non-renewable energy
- 40% deduction.
- Up to 7,500 Euros to be deducted per property.
- Condition: Reducing the consumption of primary, non-renewable energy in the main residence by 30% or improving its energy rating to A or B.
- 60% deduction.
- Possibility of deducting up to 15,000 Euros per property.
- Condition: Reducing primary or non-renewable energy consumption in residential buildings by 30%, improving their energy rating to A or B.
In communities of property owners a participation co-efficient will apply to each property.
Application period
From 6 of October to 31 of December, 2022, and the application must refer to the tax payer’s main residence, or a property that is rented or is going to be rented as a main residence.
Change to the Horizontal Property Law
- Changes are made to the rules relating to resolutions made at the Owners’ Meetings.
- Article 17.2 is changed and now has the following additional text:
- The approval of works to improve energy efficiency or install sources of renewable energy, and apply for funding will require:
- The favourable vote of the majority of the owners representing the majority of the ownership shares, provided that the annual cost, after deduction of any grants and subsidies, does not exceed nine ordinary monthly payments of the common costs. This criteria applies only when the work or activity to improve the energy efficiency can be confirmed through the energy efficiency certificate.
- Any dissenting owner will be obliged to pay for these works, provided that the price does not exceed 9 monthly payments, and falls under general expenses.
And now, the powers of Communities of Property Owners are extended to cover refurbishment, and they have full legal capacity for credit operations, and to prepare plans or management projects and apply for loans etc.