Building refurbishment; application for a certificate for tax purposes

The costs of maintaining and repairing buildings in designated regeneration areas or urban development areas can be reduced, in some cases significantly, through tax relief.

In order to claim tax relief for modernisation and repair work carried out within regeneration areas and urban development zones, a certificate issued by the local authority must be submitted to the tax authorities.

This certificate is issued by the relevant local authority upon application. Tax advisers can provide comprehensive advice on the details of any tax relief available.

Measures leading to the construction of a new building are not eligible for tax relief.

The costs of (construction) works, as well as grants from regeneration or development funding, must be specified in the application.

The costs of modernisation and repair work, less any grants, may be deducted at a rate of up to 9% in the year of expenditure and in each of the following seven years, and at a rate of up to 7% in each of the subsequent four years.

In the case of properties used to generate income, maintenance expenses may, at the taxpayer’s request, be spread over two to five years rather than being deducted in a single year. For owner-occupied properties, the construction costs may alternatively be deducted as special expenses at a rate of 9 per cent over a period of ten years.