Want to rehabilitate a home? Get to know the tax benefits in 2018.

With regard to the changes, we started with IMI, which, for those who have the objective of rehabilitating a property and allocating it to permanent housing (either rent or own housing), may be exempt from this tax, not three but eight years. The widening of the benefit to urban buildings or autonomous fractions, since outside urban rehabilitation areas and which were completed more than 30 years ago, is also the result of change this year.

 

In relation to the IMT (municipal tax on onerous transmission of real estate), there is currently only exemption for rehabilitation of urban buildings. Nevertheless, it is anticipated that this benefit will be extended to the acquisition of real estate for urban rehabilitation works, that are destined to rent for permanent housing or that are located in areas of urban rehabilitation and if and that are destined to own and permanent housing .

 

As for the Personal Income Tax (IRS), owners can deduct 30% of the intervention costs, up to a limit of 500 euros.

 

Capital gains from the sale of rehabilitated properties in urban rehabilitation areas are taxed at a reduced rate of 5%. The same rule applies to property income from rehabilitated properties.

 

Please note that in order to have access to these benefits, you must comply with certain conditions, such as requesting the recognition of the rehabilitation, together with the previous communication or the license application of the urban operation. It is then up to the respective municipality to communicate this recognition to Finance within twenty days.

 

Get more information from the City Hall and take advantage of the new tax benefits.