Condominium Renovation 2025: Frequently Asked Questions from the IRS

To clarify issues related to condominium renovations, the IRS has published answers to frequently asked questions. The information covers various aspects, from restrictions on reporting expenses to monitoring the consistency of amounts reported. The updates concern, in particular, guidance on the obligations and communication duties of administrators.

Reporting deadlines

Condominium administrators must report to the Tax Registry by 16 March each year the costs incurred by the condominium in the previous year for measures to restore the historical heritage of the building and for energy re-qualification, as well as for the purchase of furniture and large household appliances for the arrangement of common areas of the property being renovated.

Some clarifications

In a frequently asked question regarding communication costs related to the construction of a condominium, the Tax Administration announced that the administrator is exempt from sending an informational message if all condominium owners have chosen to transfer a credit or a discount on the amount due instead of directly using the deduction for all work performed in the common areas. This measure is provided for by way of exception under the regulation of February 21, 2024.

With regard to minimum condominiums, the Tax Administration clarified that “if an administrator is appointed in a condominium with fewer than eight members (according to Article 1129 of the Civil Code, the appointment of an administrator is only mandatory if the number of members exceeds eight), the administrator is obliged to report data on the restructuring and energy saving measures carried out in the common areas of the condominium by March 16 of the following year. However, if the owners of the “minimum condominium” have not appointed an administrator, they are not obliged to report data on the measures to the Tax Registry.”

For super condominiums, the IRS explained that it will provide software to compile and monitor data on renovation and energy-saving measures.

Methods of reporting

If the super condominium has made all payments related to renovation and energy saving measures, it will send a single message to the Tax Agency with the details of the measures and the expenses due to all condominium owners. However, if the super condominium has made payments for renovation in common areas, while individual condominiums have also made their payments, each legal entity (super condominium and condominium) will send its own messages to the Tax Agency.

The Tax Administration noted that with regard to the transmission of data on events held in the common areas of the condominium, it will provide appropriate software for their compilation and control.