Energy renovation subsidies in Spain in 2026: IRPF deductions, solar self-consumption and reduced IVA

A guide to the grants, tax deductions and reduced VAT that fund energy renovation work on a Spanish home in 2026.

Spanish property owners who upgrade insulation, windows, heating systems or install solar panels in 2026 can draw on three layers of public support: personal income tax deductions of 20, 40 or 60 per cent introduced by Real Decreto-ley 19/2021 and extended to 31 December 2026 by Real Decreto-ley 7/2026, a new 10 or 20 per cent IRPF deduction for solar self-consumption installations created by the same Real Decreto-ley 7/2026, and a reduced 10 per cent IVA rate on renovation work under Ley 37/1992. The Plan Eco Vivienda grant application window in Andalusia closed on 26 December 2024, but the IRPF deductions, the new self-consumption deduction and the reduced IVA rate all remain available. This guide sets out what each layer covers, who qualifies and how the claim works.

What is the status of the Plan Eco Vivienda grants in 2026?

The Plan Eco Vivienda grant programme in Andalusia is now in its execution phase, not its application phase. The Junta de Andalucia confirms that the application window, which opened on 17 October 2022 and was extended from 5 April 2024 to 26 December 2024, is now plazo vencido, meaning no new applications can be submitted. The Orden de 14 de mayo de 2026 (BOJA no 96 of 21 May 2026) modified the bases reguladoras of the programme to accommodate the transition, and the deadline for completing Linea 3 whole-building works was extended to 30 June 2028 through a Comision Bilateral de Seguimiento agreement authorised by the disposicion final segunda of Real Decreto 326/2026 (the Plan Estatal de Vivienda 2026-2030), which amended Article 4.7 of Real Decreto 853/2021. Linea 4, Linea 5.1 and Linea 5.2 works must still be completed by 30 June 2026. The PRTR framework that channels the Next Generation EU funds into these grants concludes in August 2026, per the Council of the EU.

How do the three IRPF energy renovation deductions work?

The Agencia Tributaria administers three personal income tax deductions, each tied to a different energy performance threshold. They are mutually exclusive for the same work, so an owner picks the one that fits the improvement achieved. The current legal basis is Real Decreto-ley 7/2026, de 20 de marzo (BOE-A-2026-6544), convalidated by Congress on 26 March 2026. This is the third extension in nine months: Real Decreto-ley 16/2025 first extended the deadlines but was derogated by Parliament on 27 January 2026 (BOE-A-2026-2024); its replacement, Real Decreto-ley 2/2026, was also derogated on 26 February 2026; Real Decreto-ley 7/2026 then re-extended the deductions and was convalidated, making it the current governing law.

Deduction	Requirement	Base cap (annual)	Carry-forward cap	Spend deadline	Certificate deadline
20 per cent	Reduce heating and cooling demand by at least 7 per cent	EUR 5,000	EUR 15,000 over 4 years	31 Dec 2026	Before 1 Jan 2027
40 per cent	Reduce non-renewable primary energy consumption by at least 30 per cent, or reach energy label A or B	EUR 7,500	EUR 15,000 over 4 years	31 Dec 2026	Before 1 Jan 2027
60 per cent	Whole-building rehabilitation that improves the energy certificate (building-level, not single dwelling)	EUR 5,000	EUR 15,000 over 4 years	31 Dec 2027	Before 1 Jan 2028

The deductions apply to the taxpayer’s habitual residence or to another property they own that is let (or will be let before 31 December 2027) as a habitual residence, per the Agencia Tributaria guidance. The qualifying spend runs from 6 October 2021, the entry into force of Real Decreto-ley 19/2021. The deduction is applied in the tax year the post-work energy certificate is issued, not the year the invoice is paid, and the certificate must be registered under Real Decreto 390/2021. Payment must be made by credit or debit card, bank transfer, nominative cheque or bank deposit; cash payments do not qualify, and any publicly subsidised amounts must be deducted from the base.

A practical example: an owner spends EUR 12,000 on insulation and a heat pump that cuts heating and cooling demand by 15 per cent. They claim the 20 per cent deduction. The annual base cap is EUR 5,000, so they deduct EUR 1,000 (20 per cent of EUR 5,000) in the year the certificate is issued, and carry the remaining EUR 7,000 forward, deducting EUR 1,000 a year for the next four years up to the EUR 15,000 cumulative cap. Over five years they recover EUR 2,400 against their IRPF bill.

What is the new solar self-consumption deduction in 2026?

Real Decreto-ley 7/2026 introduces a fourth IRPF deduction, available only for installations completed during 2026. Under the new Disposicion Adicional Sexagesima Segunda of the Ley 35/2006 (LIRPF), an owner can deduct 10 per cent of the cost of installing a renewable self-consumption system (solar photovoltaic panels with or without battery storage) in an individual dwelling, or 20 per cent if the installation is in a residential building as a community project. The base cap is EUR 5,000 per year, and the deduction is applied in the tax year the installation is completed, which cannot be later than 2026.

The self-consumption deduction requires a Certificado de Instalaciones Electricas (CIE) issued under the Reglamento Electrotecnico de Baja Tension, in accordance with Real Decreto 244/2019. Crucially, the law states that a taxpayer cannot claim both this deduction and the energy renovation deduction (Disposicion Adicional Quincuagesima) for the same installation in the same property. An owner installing solar panels that also improve the building’s energy certificate must choose between the 20 per cent renovation deduction and the 10 per cent self-consumption deduction, picking the one that yields the greater tax benefit. The energy performance certificate guide explains the EPC framework that underpins the renovation deductions.

What grants did the Plan Eco Vivienda offer in Andalusia?

The Junta de Andalucia administered the Plan Eco Vivienda through its Consejeria de Fomento, Articulacion del Territorio y Vivienda, drawing on the framework of Real Decreto 853/2021. Linea 4 funded energy efficiency improvements in individual dwellings, covering 40 per cent of the project cost with a cap of EUR 3,000 per dwelling and a minimum project cost of EUR 1,000. Works approved under this line must be completed by 30 June 2026. Linea 3 funded whole-building rehabilitation in residential blocks, with grant rates scaling from 40 per cent (for a 30 to 45 per cent energy cut) up to 80 per cent (for a cut of 60 per cent or more), with per-dwelling caps reaching EUR 18,800. Following the Orden de 14 de mayo de 2026, the Linea 3 execution deadline was extended from 30 June 2026 to 30 June 2028, with the justification deadline set at 31 December 2028.

What happens as the PRTR concludes in August 2026?

The Recovery and Resilience Facility, the EU instrument that channels Next Generation EU funds into Spain’s Plan de Recuperacion, Transformacion y Resiliencia, requires all member states to fulfil their reforms and investments by the end of August 2026, per the Council of the EU. Spain receives a total of EUR 163 billion (including EUR 84 billion in loans) for the period 2021 to 2026, per the Spanish government’s recovery plan portal. This means the PRTR-funded Plan Eco Vivienda grants are entering their wind-down phase: the application window is closed, approved Linea 4 works must be finished by 30 June 2026, and only Linea 3 whole-building projects retain the extended 30 June 2028 deadline.

The transition to the next policy framework has begun. Real Decreto 326/2026, de 22 de abril, established the Plan Estatal de Vivienda 2026-2030, which mobilises EUR 7 billion (60 per cent from the State, 40 per cent from the autonomous communities) for housing construction, rehabilitation and protection. The plan includes renovation grants of up to EUR 30,000 for empty homes returned to rental use, and up to EUR 50,000 for properties in historic centres. Its specific energy renovation grant lines have not yet been announced as of July 2026. Owners planning energy renovation work should monitor the Junta de Andalucia housing department and the IDAE for new convocatorias under the 2026-2030 plan. The EPBD retrofit obligations guide covers the European directive’s requirements that drive much of this funding.

Can the grant and the tax deduction be combined on the same project?

Yes, but the grant reduces the base on which the IRPF deduction is calculated. The Agencia Tributaria treats the PRTR grant as a subsidy that lowers the owner’s net expenditure, so the deduction applies only to the portion of the bill the owner paid from their own funds. If a EUR 10,000 insulation project received a EUR 3,000 Linea 4 grant, the IRPF deduction base is EUR 7,000, not EUR 10,000. The reduced 10 per cent IVA rate, by contrast, applies to the full invoice value because it is a VAT rule, not an income tax rule, and the contractor charges 10 per cent on the total regardless of whether a grant is involved.

The stacking order, from the owner’s perspective, is: PRTR grant first (cuts the outlay), then 10 per cent IVA on the invoice (lowers the VAT burden from 21 to 10 per cent), then IRPF deduction on the net spend (recovers a further 20, 40 or 60 per cent against tax). A non-resident owner who lets the property under the IRNR cannot use the IRPF deductions because they do not file IRPF, but they can still benefit from the reduced IVA rate, which is not tied to personal tax residency.

What renewable energy grants does the IDAE offer?

The Instituto para la Diversificacion y Ahorro de la Energia ran a separate programme under Real Decreto 477/2021 for renewable installations in the residential sector, also PRTR-funded. Programa 4 covered self-consumption solar photovoltaic installations with or without battery storage. Programa 6 covered renewable thermal systems: aerotermia at up to EUR 500 per kW (EUR 3,000 per dwelling), solar thermal at EUR 450 to EUR 900 per kW, and biomass at EUR 250 per kW. The budget across all six programmes was EUR 1.997 billion through 31 December 2023, per the IDAE tracking portal.

As the PRTR concludes in August 2026, the IDAE is preparing new funding lines in the final phase of the Recovery Plan. The IDAE also operates the Fondo Nacional de Eficiencia Energetica, established by Ley 18/2014, which funds broader energy efficiency measures through annual action plans and is not tied to the PRTR deadline. The FNEE Plan de Actuacion 2026 is published on the IDAE website. The EU Energy Efficiency Directive (Directiva (UE) 2023/1791) sets the Spanish energy saving obligation at 1.5 per cent for 2026 and 2027, driving the FNEE’s annual action plans.

How does the reduced 10 per cent IVA rate work?

Article 91.Uno.2.10 of Ley 37/1992 applies a reduced 10 per cent IVA rate (down from the general 21 per cent) to renovation and repair work on residential buildings. The Agencia Tributaria guidance sets two conditions: the work must qualify as an ejecucion de obra de renovacion o reparacion (covering masonry, plumbing, electrical, painting, carpentry and similar trades), and the materials supplied by the contractor must not exceed 40 per cent of the total invoice cost. If the materials portion crosses the 40 per cent threshold, the operation is reclassified as a delivery of goods and the full 21 per cent rate applies. The refurbishment permits guide covers the licencia de obra side of the process, and the building and renovating a villa cost guide sets out the construction cost context for budgeting the work these subsidies help fund.

What is the LPH simple-majority rule for energy renovation?

Ley 10/2022 amended Article 17.2 of the Horizontal Property Law (Ley 49/1960) so that works improving a building’s energy efficiency or installing renewable energy sources for common use can be approved by a simple majority of owners at a community meeting, rather than the three-fifths majority previously required for ordinary works. The same simple-majority rule applies to applications for rehabilitation grants and financing. This lowers the voting threshold a community needs to commission facade insulation, a shared solar array or a central heat pump, which is relevant to anyone owning a flat in an older Costa del Sol block. The Horizontal Property Law guide covers the broader LPH framework, and the community governance and voting guide sets out the quorum and majority rules in detail.

How does a property owner claim the deductions?

For the IRPF deductions, no separate application is needed: the owner declares the spend in their annual Renta filing (Renta Web), under the “Deducciones generales de la cuota” section, “Deduccion por obras de mejora de la eficiencia energetica de viviendas”, and submits the before and after energy certificates, the cadastral reference and the demand or consumption figures from Anexo II of the certificates. These deductions remain available for work completed through 31 December 2026 (individual dwellings) or 31 December 2027 (whole-building rehabilitation). The new solar self-consumption deduction is declared in the same Renta Web section, for installations completed during 2026.

For the Plan Eco Vivienda grants, the application window is now closed in Andalusia. Owners with approved grants must complete Linea 4 works by 30 June 2026 and Linea 3 works by 30 June 2028. For the IDAE renewable grants and any future programmes under the Plan Estatal de Vivienda 2026-2030, the application goes through the Agencia Andaluza de la Energia.

This guide is general information, not legal or tax advice. Rules change and individual circumstances differ. Verify current requirements with an independent lawyer (abogado) or tax advisor (gestor/asesor fiscal) before acting.