More than 80% of homes require some form of renovation. The reason is simple: Spain’s housing stock is aging and often in poor condition. More than one in eight homes carries a low or very low energy efficiency label (ranked E, F, or G). Many families are conducting energy-saving studies and considering measures such as better insulation against cold, either with a new heating source or by cladding facades. The good news is that any reform that reduces the energy bill by around 30% qualifies for support. Subsidies under the European Commission’s Next Generation EU program remain available.
To access these supports, among other requirements, a minimum of 30% savings in non-renewable primary energy must be verified, and in return households can receive 40% to 80% of the total cost funded by Brussels. Two years ago, Royal Decree 853/2021 of 5 October established regulations for the Government’s Recovery, Transformation and Resilience Plan, including housing rehabilitation and social housing assistance. This framework has already mapped the need to reform Spain’s housing stock.
This assessment reveals that almost 45% of buildings were built before 1980, and the figure rises to 50% for residential properties, totaling at least 9.7 million homes. It is also estimated that around one million homes are in deteriorated condition.
In many cases, families wonder whether their planned improvement work will qualify for subsidies. In reality, the scope of renovations is broad and includes actions such as enhancing facade and roof insulation, installing solar and photovoltaic panels, adopting aerothermal systems for heating, and measures that improve accessibility in buildings. Additional actions may involve removing asbestos or introducing digitization initiatives within communities. The aim of this European aid program is to deliver 510,000 rehabilitation actions by 2026, with administration carried out at the autonomous-community level since they govern these programs.
“This is a rare chance to push pending housing reforms forward, because the volume of aid is unprecedented; there has never been a grant program of this scale before.”
Subsidies and financing play a crucial role. The program not only provides the subsidy amount but can also be complemented with financing. As a leading financial institution explains, the financing solution is designed to be cost-effective for communities and can prevent options that would worsen leakage. The available assistance can cover up to 21,400 euros per household.
For families facing economic or social vulnerability, assistance can reach 100% of the reform cost. Banks offer tailored solutions that cover the full subsidy amount and provide longer terms for better affordability. In such cases, there is often a grace period on the loan while waiting for subsidy funds to arrive, reducing the initial financial burden. Importantly, the loan does not bind the community to additional requirements like account linking, recurring payments, or extra insurance.
Raising the sustainability of Spanish homes to achieve a 30% energy reduction was the driver behind a direct 3.8 billion euro wave of support.
Recommendations before reform
Experts suggest a clear starting point for families or neighborhood communities considering upgrades: proceed with confidence. This is described as a historic, once-in-a-generation opportunity, with the expectation that energy efficiency requirements will become a standard expectation over time. France provides a contextual example where rent controls and a large share of poorly conditioned homes already push market dynamics toward efficiency. Early adopters can access subsidies, and later, if action is needed by necessity, the extra support may not be available.
The second recommendation is practical math. Families and communities should evaluate the energy savings reflected in their monthly budgets. With current subsidies, many projects pay for themselves. The third tip is to choose a financially solid renovation partner. An official rehabilitation representative helps streamline processing and execution of measures, supported by trusted banks.