Last Monday, the European Commission gave the green light to increase Spain’s funding from the recovery plan. An additional 93.5 billion brings the total to 163,000 million, with a majority in loan form.
One modification in the original document that opened the extension concerns extending the timetable for the rehabilitation of Spain’s housing stock. In short, the request extends the period for tax deductions on rehabilitation work through the final quarter of 2024.
Brussels notes that Spain proposed language changes that would permit not only the completion of renovation projects but also the act of awarding support for carrying out such work. The delays were attributed to slower uptake of helplines, and the renovation push was affected by inflation and higher material costs, which reduced the expected demand for renovations.
The rationale for the extension points to delays caused by slow adoption of renovation lines, with inflation and elevated material prices contributing to diminished demand, according to Cinco Días media.
European aid for rehabilitation
The proposed tax reliefs are organized into three tracks: two assisting private homes and one supporting entire residential buildings. For private residences, aid ranges from 20 to 40 percent of energy rehabilitation costs, with caps of 5,000 or 7,000 euros. For complete buildings, the support rate climbs to 60 percent, with a maximum subsidy of 15,000 euros.
How can a homeowner learn what funding is available for rehabilitation?
The Ministry of Transport, Mobility and Urban Agenda provides a citizen aid simulator. It helps estimate energy consumption, compares improvement options for energy savings, and checks eligibility for the New Generation funds.
Using this tool, users can project the cost of various home renovations such as accessibility improvements, roof work, structural updates, facade refurbishments, or energy efficiency measures foreseen in the plan. By entering an address from the cadastral map and selecting different options, users receive an estimate of the renovation cost and the potential subsidy they could receive from the funds.