Last October the European Commission confirmed a boost in Spain’s recovery fund, increasing the total to 163 billion with more than half allocated as loans. The extra support marks a notable shift in financing for housing rehabilitation across the country.
An innovation within the original plan expanded funding for residential rehabilitation in Spain. In particular, the window for claiming tax deductions on rehabilitation work was extended through the end of the third quarter of 2024, extending the duration during which homeowners could qualify for incentives.
Observations from Brussels indicate that Spain proposed wording changes to permit not only the completion of renovation work but also the decision to grant assistance for carrying out such projects. The delays cited relate to slow adoption of helplines for renovation guidance, while inflation and elevated material costs have contributed to softer demand for renovation projects.
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Spain pushed to adjust language to cover both completion and the awarding of aid for renovations. Delays in helpline adoption for renovation guidance, along with inflation and higher prices for materials, have reduced renovation activity in some cases.
European aid for permanent residences and complete buildings
The European rehabilitation assistance program classifies tax deductions into three categories:
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For two individual houses, assistance ranges from 20% to 40% of energy rehabilitation costs, with a maximum of 5,000 or 7,000 euros depending on circumstances.
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For complete buildings, support can reach up to 60%, with a cap of 15,000 euros.
How can one determine eligible funding for home rehabilitation?
To help households estimate potential support, the Ministry of Transport, Mobility and Urban Agenda has developed an aid simulator. This tool estimates a building’s energy consumption and presents energy-saving improvement options aligned with Next Generation plan requirements.
Using this tool, citizens can assess costs associated with various improvements—such as accessibility, roofing, structural upgrades, facade work, or energy efficiency—for their property. Accessing the simulator involves selecting the home on a map linked to cadastre records and exploring different options to obtain an estimate of renovation costs and the corresponding subsidy amount from the available funds.