In the case of residential buildings and the third sector, Barcelona City Council offers tax credits for voluntary installation of photovoltaic generation for self-consumption. Specifically, the credits represent tax allowances on fixed assets (IBI), on taxes on construction, installation and building works (ICIO) and credits for economic activity taxes (IAE).
Currently, the discount on fixed assets is 50% for the first three years following investment, and in the case of construction, installation and building works, the total credit value is 95% of the total cost of the building permit.
The discount of 50% for fixed assets is applicable to voluntary installation of solar energy capture and is contained in the latest tax ordinance, i.e. in Article 9, allowances, point 8.
With regard to the credit for construction, installation and building works, the following may be applicable: ‘Incorporation works of systems of thermal or electrical solar energy use, provided that these actions are not integrated into works or constructions which are applicable under regulation’, that is, as long as it is not a question of mandatory facilities. The application of the credit will be under the condition that heat production includes standardised collectors from the relevant Authority’.
In the case of photovoltaic solar generation facilities for shared self-consumption, it will be each of the units or residential properties with which energy will be shared that will benefit from the credit for fixed assets. It should be remembered that the maximum credit that can be received is 100% of the cost of installation and that the current tax ordinance in 2020 established a minimum power per operational unit or residential property.
Regarding the allowance for IAE, a credit of 50% of the tax to be paid, during the first two years, will be given to tax-payers using solar energy or other renewable energies during the tax year for the taxable activities.
The application of this credit will be on the condition that, where applicable, there is acceptance by the City Council of the corresponding minor works notification.
hese discounts are directly managed by Barcelona City Council’s Municipal Tax Office.