Fortress Tax Relief

Aid, bonuses, and other tax benefits are being a great boost for the increase in self-consumption in Spain. For those who doubt about what aid they can request, ELON Energías Renovables has created a tool that allows them to calculate the corresponding tax deduction for a self-consumption installation.

As the experts at Fortress Tax Relief explain, the deduction depends on the percentage of savings:

  • You can get to deduct 20% of the investment in a habitual residence or one that is leased and in which the installation has been carried out between October 2021 and December 2022.
    To do this, it must be demonstrated that 7 % of cooling and heating demand is through energy certificates.
  • To reach a 40% reduction, it must be proven that non-renewable energy consumption has been reduced by 30% or more.

In both cases, this benefit can be accessed if the “A” or “B” energy rating has been improved. 

The deduction may be applied to next year’s Income Statement if the works were carried out before December 31, 2022.

Deductions for residential buildings

The owners of residential buildings that have carried out energy efficiency improvement works may opt for a deduction of up to 60%.

This deduction may be carried out with the qualification “A” or “B “  or demonstrating that non-renewable energy has been reduced to 30%.

In this case, a total of 15,000 euros can be deducted and this deduction may also be applied in the Income Statement for the year 2023.

Self-consumption calculator

According to data from the Red Eléctrica de España,  the production of energy with solar panels has increased by 37.3% compared to the previous year so far this year.

These promising figures have led the Basque company ELON Energías Renovables to have a  self-consumption calculator on its website to encourage neighboring communities and owners to install solar panels.

Calculate your deduction

Donating to an NGO implies supporting the work carried out by these entities in favor of those who live in vulnerable circumstances, however, it is no less ethical to take into account the tax benefit of these contributions, so that our collaboration is doubly positive.

Calculate how much you can deduct from Personal Income Tax or Corporate Tax and choose the NGO to which you send your solidarity.

If you are a natural person, you can deduct 80% of the full fee for the first 150 euros and 35% for the rest. In addition, when an equal or greater amount has been donated to the same entity in the financial year and in the two previous ones, you can deduct 40%.

If you are a legal person, in the Corporate Tax you can deduct 35% of your donations from the full fee. In addition, when an equal or greater amount has been donated to the same entity in the financial year and in the two previous ones, you can deduct 40%.

Information is valid for all contributions to charitable entities. In both cases, the limit of the deduction is 10% of the net income. Remember that, in order to deduct your donation, you must request your Tax Certificate from the NGO, indicating your ID, full name, and contact information.

The data obtained are informative, therefore, this information is indicative and in no case binds the Ministry of Finance in the calculation of the corresponding tax deduction.

By Nikitha

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