IRPF deductions

The Personal Income Tax (IRPF) is a tax levied on the income of Spanish citizens during a calendar year, being progressive and direct.

On October 6, 2021 a [Royal Decree Law] was approved (https://www.boe.es/boe/dias/2021/10/06/pdfs/BOE-A-2021-16230.pdf ) where reduction of personal income tax is allowed for the energy improvement of homes, such as that obtained with the installation of solar panels. This Royal Decree is within the framework of the Recovery, Transformation and Resilience Plan, which introduces three new temporary personal income tax deductions on the amounts invested in works of rehabilitation that make improvements in energy efficiency.

But what is energy efficiency? Energy efficiency is the optimization of energy consumption. This can be achieved when users make efficient use of energy or when they use mechanisms that save energy and reduce their losses,** for example, turn off the television when not watching.

In turn, the installation of solar panels would mean an improvement in energy efficiency, since users would use energy more efficiently, time that the production of the energy would be by the user, so that energy is saved, at the same time that the energy losses produced by the solar panels are reduced.

Once the concept of energy efficiency is understood, let’s go on to list the three types of personal income tax deductions:

20% deduction

This 20% deduction can be obtained if you carry out work to improve energy efficiency in your habitual or rented home, for use as a home. For example, if you install solar panels, since these help improve the energy efficiency of the home. With it you can deduct a maximum of 5,000 euros per year**. **How ​​do I deduct them?** For this **you need that the works carried out in the home contribute to a reduction of at least 7% in the demand for heating and cooling n**. This **must be accredited through the home’s energy efficiency certificate**, provided by the technician who performs the installation.

In order to obtain this deduction the installation must have been carried out between October 6, 2021 and December 31, 2022.

40% deduction

This 40% deduction can be obtained if you carry out works to improve energy efficiency in your habitual or rented home, for use as a home. With this you can deduct a maximum of 7,500 euros per year. How ​​do I deduct them? For this *you need that the works carried out in the home contribute to a reduction of at least 30% of the consumption of non-renewable primary energy * or the improvement of the house in the energy rating of the house obtaining an energy class 1cA 1d or 1cB 1d. This must be accredited through the home’s energy efficiency certificate, provided by the technician who performs the installation.

In order to obtain this deduction the installation must have been carried out between October 6, 2021 and December 31, 2022.

60% deduction

This third deduction can be accessed when rehabilitation works are carried out that improve energy efficiency in buildings for predominantly residential use. With this you can deduct up to a maximum of 15,000 euros. How ​​do I deduct them? You have to achieve an improvement in the energy efficiency of the entire building in which the dwelling is located, of at least a 30% reduction of non-renewable energy consumption or the improvement of the energy rating of the building obtaining an energy class 1cA 1d or 1cB 1d. This must be accredited through the energy efficiency certificate, provided by the technician who performs the installation.

To obtain this deduction, the term is extended until December 2023.

By choosing Solarama as your solar partner, we will take care of all aspects of your installation, from the design, financing and warranties, to the legalization and processing of the applications for subsidy, and the monitoring and optimization of the solar installation during the following years.