Income tax deductions for energy efficiency improvements Spain in 2026 represent a key tool for property owners seeking to reduce their tax burden while investing in energy-efficient upgrades, provided that all regulatory requirements are properly met.
What works qualify for the deduction.
In recent years, Spain has actively promoted improvements in the energy efficiency of its housing stock by introducing tax incentives that remain relevant in 2026 for property owners considering refurbishment works. Although these advantages are often associated exclusively with the installation of solar panels, their scope is in fact much broader and covers a wide range of improvements.
Any works that result in a genuine improvement in the energy efficiency of a property may qualify for personal income tax (IRPF) deductions. This includes, among others, the installation of solar panels, the replacement of windows with more efficient models, improvements to thermal insulation in façades or roofs, or the upgrading of heating and cooling systems to more efficient solutions such as aerothermal systems. What matters is not so much the type of work carried out, but the measurable impact it has on the property’s energy performance.
How much you can deduct depending on the improvement?
Depending on the level of improvement achieved, the regulations provide for different levels of deduction. In more modest cases, where heating or cooling demand is reduced, the deduction may be around 20%. Where the works achieve a significant reduction in primary non-renewable energy consumption, at least 30% the deduction may reach 40%. In the most substantial cases, where there is a significant improvement in the property’s energy rating, the deduction may be as high as 60%. This represents a potentially very significant tax saving where all requirements are met.
Practical tip:
Before starting any works, it is advisable to assess whether the improvement will meet the requirements to apply the deduction, as not all energy upgrades automatically qualify for tax benefits.
Key requirements to apply the deduction.
One of the most important aspects and where errors are most commonly made in practice is the need to properly evidence the energy improvement. To do so, it is essential to obtain an energy performance certificate before the works and another one after completion. Both must be issued by a qualified technician and officially registered. Without this documentation, the tax authorities will not accept the deduction, regardless of the investment made.
In addition to this technical requirement, certain formal conditions must also be met. Payments must be made through banking methods, as cash payments are not accepted for tax purposes. Invoices must be correctly issued in the name of the property owner and must clearly reflect the works carried out. Furthermore, if any public subsidies or grants are received, these must be deducted from the amount on which the tax deduction is calculated.
Practical considerations and final remarks:
Another important point is that these tax advantages are not limited to primary residences. They may also apply to second homes, holiday properties, or even properties intended for rental or in the process of being let. This significantly broadens their relevance, particularly in areas such as the Costa de la Luz, where many property owners are non-residents or use their homes on a seasonal basis.
From a practical perspective, beyond the tax element, energy efficiency improvements generally provide clear benefits: a reduction in energy consumption and utility costs, an improved energy rating, and consequently greater attractiveness in the property market. In regions such as Andalusia, where climatic conditions are particularly favourable for solar energy, these investments are especially compelling.
In conclusion, income tax deductions for energy efficiency improvements remain a valuable tool in 2026, but they are not automatic. They require careful planning, both technically and from a documentation perspective, from the outset of the project. Professional advice is therefore essential to ensure that the investment not only enhances the property but also allows full access to the available tax benefits.
ÁLVARO MORALES SOUSA
PARTNER – LAWYER
CUSTOM REPRESENTATIVE
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