Grants and tax breaks for energy upgrades in Spain

Key rules

• Timing: Many grant calls require you to apply before works start or a contract is signed, so read the call before committing.
• Non-residents: Non-resident owners can often apply, but calls limited to a main residence exclude them.
• VAT: VAT on energy works is 21%, or 10% for home renovation done for an individual where materials are no more than 40% of the price.
• Local bonuses: Each town hall sets its own IBI and ICIO reductions, so ask yours.

What exists now

Most energy-upgrade money in Spain has come from EU recovery funds. The state sets the programmes, and the regions run the calls. That funding period was ending in 2026, so many programmes (home rehabilitation, solar for self-consumption, heat pumps) have closed or are closing. Whether anything is open for you depends on your region and your town. Look for your region's current call before you plan any works.

Three kinds of help are worth checking:

• Grants from your region, and sometimes your town hall.
• Income tax deductions for energy works. These ran for works from 6 October 2021 and ended after 2024 unless extended. Ask a tax adviser or the tax agency whether a new one is in force this year.
• Local tax bonuses from your town hall. These are the most likely to still be available.

Apply before you start works

Many grant calls require you to apply before works start or a contract is signed, so read the call before committing. Starting early can make the whole expense ineligible. Some recovery-fund programmes did accept works started after a set date, but do not assume this. Hold off on signing until you have read the call's timing rule.

Who qualifies, including non-residents

Eligibility usually depends on owning the property and the works, not on your residency or nationality. As a non-resident owner you will normally need:

• a Spanish tax number (NIE);
• proof of ownership;
• a Spanish bank account;
• to be up to date with tax and Social Security, or to declare an exemption.

Some calls only cover a main residence, which a non-resident cannot meet. Check this in the call itself. The income tax deduction was only for people who pay Spanish income tax, so it generally does not help non-residents.

How much a grant can cover

Amounts are set by each call. Earlier recovery-plan rehabilitation calls covered 40%, 65% or 80% of eligible cost, depending on whether you cut the home's energy demand by at least 30%, 45% or 60%. Earlier solar and heat pump aid was roughly 15% to 45% of cost. Treat these as a guide to scale only. Today's calls may be lower, or closed.

Where to apply

You apply to your region, usually through its housing or energy department or energy agency, online. Expect to sign in with a digital certificate or Cl@ve. Some towns run their own calls. The call names the portal and the method.

Local tax bonuses

Town halls may reduce two taxes for solar installations:

• IBI, the yearly property tax: up to 50% off for solar thermal or photovoltaic panels, usually for 3 to 5 years.
• ICIO, the construction tax paid on works: up to 95% off for solar installations.

Levels vary widely, and some towns offer nothing. Ask your town hall for its ordinance. You claim by applying to the town hall, normally with the project, the licence and the installation certificates, within its deadline. The ICIO reduction usually has to be requested before or alongside the licence, so ask early.

VAT on the works

VAT on energy works is 21%, or 10% for home renovation done for an individual where materials are no more than 40% of the price. Temporary reduced rates for solar have expired. In the Canary Islands, Ceuta and Melilla, different taxes apply.

The timeline, document list and checklist below walk you through the steps.

Timeline and deadlines

• Find the open call for your region and town: before you start any works

• Apply for the grant and any town hall tax bonus requests that must come first: before works begin or a contract is signed, if the call says so

• Apply while the call is open: calls usually stay open until the funds run out or a stated end date

• Finish the works: usually 12 to 18 months from the award

• Claim the IBI and ICIO reductions at your town hall: within the deadline in the municipal ordinance

Check the current window and end date of your regional call, and your town hall's deadline for tax bonuses.

Documents usually needed for an energy grant

• Your ID or NIE (Spanish foreigner number), plus your bank details for the payout.

• Proof of ownership: a nota simple (an extract from the Property Registry) or the title deed.

• A quote or budget for the works, and a technical report or project if the call asks for one.

• The energy performance certificate from before the works, issued by a qualified technician such as an architect, engineer or technical architect and registered with your region. Needed when the grant rewards energy savings or a better rating; solar self-consumption calls generally do not ask for it.

• For a community of owners, the minutes of the meeting that approved the works.

• Final invoices and proof of payment that can be traced through your bank, to justify the grant after the works.

• The energy performance certificate from after the works, issued and registered in the same way, when the first one was required.

• The works completion certificate, photos from before and during the works, and the data sheets of the products installed.

• If you are a non-resident owner: your passport and a Spanish bank account certificate, along with your NIE and proof of ownership.

• If you are a non-resident owner: certificates showing you are up to date with the Spanish tax agency (AEAT) and Social Security, or a declaration of exemption. Some calls also want a tax residence certificate.

• Your latest IBI receipt (the yearly property tax bill), which can help back up ownership.

Checklist

• Find the regional call that is open now in your regional official gazette or your region's housing or energy department.

• Check the call's closing date or whether its funds have run out.

• Read the call to see whether you must apply before works start or a contract is signed.

• Check whether the call limits aid to main residences, if you are a non-resident owner.

• Check with your tax adviser or the tax agency whether an income tax deduction for energy works is in force this year.

Frequently asked questions

Can I get an energy grant if I am a non-resident owner?

Yes, in most cases, because eligibility depends on owning the property and the works, not on residency or nationality. You need a Spanish tax number (NIE), proof of ownership and a Spanish bank account.

How much of the cost can a grant cover?

Earlier Recovery Plan programmes covered 40%, 65% or 80% of the eligible cost, depending on whether energy demand fell by at least 30%, 45% or 60%. Caps were about 3,000, 5,000 and 7,000 euros per dwelling in single-home programmes. Solar aid in 2021-2023 covered about 15-45% of the cost, and each regional call sets its own amounts.

Where do I submit a grant application?

You apply to your autonomous community, usually through its housing or energy department and its online office. You sign in with a digital certificate or Cl@ve. The regional call names the portal, and some town halls run their own calls.

Is there still an income tax deduction for energy works?

The IRPF (income tax) deductions of 20%, 40% or 60% for energy works ended after 2024 unless a later law extended them. Check whether a new one is in force before you rely on it. If one applies, you need an energy certificate from before and after the works.

Can my town hall reduce my property tax for solar panels?

Yes, many town halls reduce the IBI (yearly property tax) by up to 50% for solar installations, usually for 3 to 5 years. They may also cut the ICIO (construction tax) by up to 95%. You apply at the town hall with the project, licence and installation certificates, within the deadline in its local rules.