European support for home rehabilitation projects
On Monday, October 2, the European Commission approved an expansion of Spain’s recovery fund allocations, increasing overall funding by 93.5 billion euros. The total now stands at 163 billion euros, with more than half of the additional funds provided as loans. This boost reflects a broader push to accelerate housing rehabilitation and energy-efficiency upgrades across the country.
One notable element added to the initial plan is the extended rehabilitation timeline for Spain’s residential stock. In practical terms, the document allows for a lengthened period to claim tax deductions for approved rehabilitation works, extending the eligibility window to the final quarter of 2024.
Brussels notes that Spain proposed a wording change that would empower authorities not only to complete renovation projects, but also to authorize financial support for carrying out such renovations. Delays were partly attributed to the slower uptake of helplines and the inflation-linked rise in material costs, which depressed the anticipated demand for renovation work.
Reports from Cinco Días indicate that the extension and the available funds are linked to those delays—specifically, the slower adoption of renovation helplines amid inflation and high material prices, which reduced expected demand for renovations. The aim is to keep renovation efforts moving despite economic headwinds.
European aid for rehabilitation
The income tax relief components proposed in the plan are structured into three lines: two focused on private homes and one on entire buildings. For private residences, assistance ranges from 20% to 40% of energy-saving rehabilitation costs, with caps of €5,000 or €7,000. For complete buildings, the aid rate can reach up to 60%, with a maximum support of €15,000. These measures are designed to stimulate both small-scale and large-scale energy improvements across Spain and help households meet energy efficiency goals.
How to determine potential subsidies for home rehabilitation
The Ministry of Transport, Mobility and Urban Agenda has published an aid simulator to help citizens estimate their eligibility. The tool allows users to roughly calculate a building’s energy consumption and to explore various improvement options that meet the conditions for the New Generation assistance. This resource is intended to give households a clearer picture of how different upgrades could impact costs and the level of subsidy available.
Using the simulator, individuals can project how much a given housing renovation—such as accessibility upgrades, roof replacements, structural improvements, facade restoration, or general energy-efficient measures—might cost. By selecting a property address on a map connected to the cadastre and trying different renovation scenarios, users can obtain an estimate of the overall reform cost and the corresponding subsidy from the available funds. This helps homeowners plan their projects with a realistic view of financial support and timelines. The tool also clarifies the requirements needed to qualify for the National Recovery and Resilience plan and related incentives.