Royal Decree Law 19/2021 establishes personal income tax deductions for works to improve energy efficiency for habitual or rented housing

Royal Decree Law 19/2021 establishes personal income tax deductions for works to improve energy efficiency for habitual or rented housing

The Royal Decree Law 19/2021, of October 5, on urgent measures to promote building rehabilitation activity in the context of the Transformation and Resilience Recovery Plan, establishes in its preamble as a fundamental objective, the to improve the quality of the national building stock, in relation to its energy rating. To this end, it establishes a series of tax incentives regarding personal income tax on a temporary basis, for those individuals who carry out rehabilitation works in their habitual or rented home for use as a home, which contribute to improving energy efficiency in terms of consumption and emissions. . In order to apply the deductions mentioned below, it is required that the amounts that give the right to the deduction be paid to the people or entities that carry out the works by credit or debit card, bank transfer, nominative check or deposit into an account in credit institution, as well as those who issue the certificates, not giving the right to deduction for amounts paid through legal tender.


  1. 20 percent of the amount of the works carried out that imply a 7 percent reduction in the demand for heating and cooling. A maximum deduction limit of 5,000 euros per home is imposed. The application period is from October 6, 2021 to December 31, 2022.

  2. 40 percent of the amount of the works carried out that imply a 30 percent reduction in the consumption of non-renewable primary energy, or improve the energy rating by reaching the letters “A” or “ B.” A maximum deduction limit of 7,500 euros per home is imposed. The application period is from October 6, 2021 to December 31, 2022.

  3. 60 percent of the amount of the works carried out on buildings for predominantly residential use, which imply a 30 percent reduction in the consumption of non-renewable primary energy, or improve the energy rating reaching the letters “A” or “B”. A maximum deduction limit of 15,000 euros per home is imposed. The application period is from October 6, 2021 to December 31, 2023.


Finally, Royal Decree Law 19/2021 establishes that certain aid approved in recent years in different legal regulations, related to energy and residential rehabilitation, which we list will not be integrated into the personal income tax base next:

  • Royal Decree 691/2021, of August 3, which approved subsidies to be granted for energy rehabilitation actions in existing buildings, in execution of the energy rehabilitation program for existing buildings in municipalities demographic challenge (PREE 5000 Program), included in the Regeneration and Demographic Challenge Program of the Urban Rehabilitation and Regeneration Plan of the Recovery, Transformation and Resilience Plan, as well as its direct concession to the autonomous communities.

  • Royal Decree 737/2020, of August 4, which regulates the aid program for energy rehabilitation actions in existing buildings and regulates the direct granting of aid from this program to the autonomous communities and cities of Ceuta and Melilla.

  • Royal Decree 853/2021, of October 5,, which regulates the aid programs regarding residential rehabilitation and social housing of the Recovery, Transformation and Resilience Plan.



Tax Department.

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