Tax credit for household expenses in renovations conducted at a housing company
If you own an apartment, you are entitled to the credit only on such maintenance and modernisation work for which you, as the housing company’s shareholder, are responsible. The responsibilities are determined by law or in the housing company’s Articles of Association. If it is the housing company’s responsibility to conduct the renovations, you cannot claim the credit for the renovation expenses even if you had paid them yourself.
When the housing company is responsible for renovations, no credit is granted
The housing company decides on renovations and collects money for them in the form of charges. This means that the work is the housing company’s responsibility. Renovations financed with housing-company charges do not entitle you to the credit.
If responsibility for the maintenance is transferred to the shareholders by amendment of the Articles of Association, the amendment must be filed with the Trade Register. If the allocation of responsibilities has not been reported, the shareholder is not entitled to the tax credit.
Housing companies cannot be granted the tax credit. It may be granted only to an individual (or to an estate, for the year during which the deceased person died).
The owner of an apartment is entitled to the tax credit
If you own an apartment, you are entitled to the credit on such maintenance and modernisation expenses for which the housing company is not responsible. This includes decorating done in the apartment, such as painting or hanging wallpaper on the walls.
When the housing company has renovations done, you can request the credit on separately requested additional jobs that are not financed with housing-company charges. Examples of such additional jobs include bathroom extension or extra tiling work ordered and paid by you in connection with the housing company’s plumbing renovations.
To get the credit, you must agree on the work directly with the entrepreneur and pay the extra invoice directly to them.
Note that you cannot get the credit for renovation work if you have rented out the apartment. Instead, you can deduct the renovation expenses from your rental income.
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