If you're thinking about renovating your home to make it more efficient and sustainable, you should know that you can benefit from income tax deductions for energy improvements of up to 60.1% of the investment. And thanks to the extension approved by Royal Decree-Law 7/2026, the deadline to claim these deductions has been extended to December 31, 2026, for individual homes and to December 31, 2027, for entire residential buildings.
In this article we explain which works entitle you to deductions in your Personal Income Tax (IRPF) for energy improvements in your home in 2026, how much you can deduct, what documentation you need and what the requirements are to avoid losing the tax benefit.
01 · Three levels of deduction in personal income tax for energy improvements in housing 2026
Deductions for energy efficiency in personal income tax are applied according to the degree of energy improvement achieved. There are three levels:
| % Deduction | Type of work | Maximum annual base | Construction deadline |
| 20% | Reduction ≥7% heating/cooling demand | €5,000/year per dwelling | 31/12/2026 |
| 40% | Reduction ≥30% in non-renewable primary energy consumption OR A or B rating | €7,500/year per dwelling | 31/12/2026 |
| 60% | Energy rehabilitation of a complete residential building (reduction ≥30% or A/B rating) | €5,000/year per owner (up to 4 years) | 31/12/2027 |
| Important update — Royal Decree-Law 7/2026 Royal Decree-Law 7/2026, ratified by Congress in March 2026, has extended these deductions. The deadline for individual homes is December 31, 2026; for entire residential buildings, December 31, 2027. The article previously published on our website indicated a deadline of 2025, which is no longer in effect. |
02 · Which works entitle you to personal income tax deductions for energy improvements
Not all renovations are tax-deductible. What determines eligibility for the deduction is not the type of work itself, but the actual energy efficiency improvement, certified by an energy performance certificate before and after the renovations. That said, the most common renovations that qualify for the deduction are:
- Insulation of facades, roofs and floors: External Thermal Insulation Composite Systems (ETICS), interior wall linings, air gaps, and roof insulation are the most effective measures for reducing heating and cooling demand.
- Replacement of windows and joinery: Windows with double or triple glazing and thermal break. They significantly improve heat loss and sound insulation.
- Aerothermal installation: High-efficiency heating, cooling, and domestic hot water systems. Very common in comprehensive renovations prior to a sale or rental.
- Solar panels and self-consumption systems: Royal Decree-Law 7/2026 has also created a new specific deduction for self-consumption installations with renewable energies during 2026.
- Energy rehabilitation of a complete building: When the community of owners undertakes a comprehensive renovation that improves the energy rating of the building, each owner can deduct the 60% from their proportional share of the cost.
| Essential requirement To claim any of the personal income tax deductions for energy efficiency improvements, you need two energy performance certificates: one issued before the work and another issued afterward that verifies the improvement achieved. Without the subsequent certificate, no deduction is possible. Furthermore, payments must be made by bank transfer—never in cash. |
03 · Requirements and necessary documentation
- Previous energy efficiency certificate: Issued by a qualified technician before the start of construction. It certifies the initial qualification.
- Subsequent energy efficiency certificate: Issued once the works are completed. It must certify the improvement required for each deduction bracket. For deductions 20% and 40%, it must be issued before January 1, 2027.
- Invoices in your name: Of all the work carried out and materials acquired included in the deduction base.
- Bank payment receipts: Transfers, card or bank deposit. Cash payments are not deductible under any circumstances.
- Primary residence or residence intended for rental: The deductions apply to the taxpayer's main residence, or to homes intended or to be intended for rental as a main residence before December 31, 2027.
- Grants: If you have received public aid (such as Next Generation funds), you must subtract it from the deduction base. You cannot deduct what has already been subsidized.
| Compatibility with other aids Personal income tax deductions are compatible with rehabilitation program subsidies (PREE, Next Generation, etc.) as long as they are not applied to the same amount. You can combine both to maximize the tax benefit. |
04 · Why improving energy efficiency also increases the value of your home
Beyond tax savings, energy efficiency improvements have a direct impact on a property's market value. In Barcelona and its metropolitan area, where the real estate market is one of the most active in Spain, energy efficiency ratings have become an increasingly important differentiating factor.
- Higher value in the sale: A home with an A or B rating sells faster and for a better price than one with an E, F, or G rating. The price gap between extreme ratings can exceed 15% in some markets.
- Lower operating costs for the tenant: An energy-efficient home generates lower utility costs for its occupant, making it easier to rent and justifying more competitive rents.
- Future obligation: The European Energy Performance of Buildings Directive (EPBD) is driving progressive regulation that will require member states to demand minimum energy ratings for renting or selling properties. Being proactive makes sense.
- Mortgage appraisals: Since August 2025, Order ECM/599/2025 requires a valid energy efficiency certificate for mortgage valuations. Without it, there is no mortgage.
05 · Frequently asked questions about income tax deductions for energy improvements in housing
Until when can I carry out the works in order to deduct them from my income tax?
For the 20% and 40% deductions (individual homes), the works and payments must be made before December 31, 2026. For the 60% deduction (entire residential buildings), the deadline is extended to December 31, 2027. In both cases, the subsequent energy certificate must be issued before January 1 of the year following the end of the deadline.
Can I deduct the cost of installing solar panels?
Yes. Royal Decree-Law 7/2026 has created a new specific deduction for self-consumption installations with renewable energy during 2026. In addition, if the installation is part of a broader renovation that improves the energy rating of the home, it can also qualify for the deductions of 20% or 40% depending on the accredited result.
Is this deduction compatible with the aid provided by the Next Generation Plan?
Yes, they are compatible, but not for the same amounts. If you received a grant for part of the work, you can only claim the income tax deduction on the amount you paid out of pocket. The subsidized portion is not deductible.
What happens if I don't get the subsequent energy certificate before the deadline?
Without the energy efficiency certificate issued after the renovations, you cannot prove the required improvement and, therefore, you lose your right to the tax deduction. It is essential to obtain it as soon as the renovations are complete and before the deadline. Don't wait until the last minute.
Can I claim the deduction on a property I rent out?
Yes. The deductions also apply to homes intended for rental as a primary residence, provided they are rented out before December 31, 2027. This also applies to homes that the owner plans to rent out within that timeframe.
| Rustic Corner Tip If you're considering renovating a property in Barcelona to sell or rent it, the combination of tax deductions and increased property value can make the investment very profitable. Our team can advise you on which improvements will have the greatest impact on the market and how to plan the project to maximize your return. |
Official references
Tax Agency — Deductions for energy efficiency improvements:
sede.agenciatributaria.gob.es — Energy efficiency deductions
Ministry of Housing — Extension of deductions (RDL 7/2026):
mivau.gob.es — Extension of deductions for energy efficiency improvements in homes
This article is for informational purposes only and was updated in June 2026 with the extension of Royal Decree-Law 7/2026. Tax regulations may change; we recommend verifying current deadlines with a professional.
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