Spain offers tax deductions for energy efficiency improvements

Retirees in Spain can access significant tax deductions for energy efficiency home improvements through 2026. These incentives aim to reduce energy consumption and demand for heating and cooling.

Deductions range from 20% to 60% depending on the scale of the project. A 20% deduction is available when works reduce heating and cooling demand by at least 7%. A 40% deduction applies if non-renewable primary energy consumption is reduced by 30% or if the home achieves an energy rating of A or B. For residential building rehabilitations, deductions can reach 60% if they meet similar consumption reduction or energy rating criteria.

To qualify, homeowners must provide energy certificates issued before and after the work. Notably, from 2026, costs for installing or replacing equipment that uses fossil fuels will no longer be eligible for these tax benefits.