Tax deductions for energy efficiency works in homes will remain in effect until December 31, 2026, as confirmed by the Treasury. Property owners will be able to apply discounts of 20%, 40%, and 60% on their income tax.
The Treasury has confirmed that tax deductions for energy efficiency in housing will remain in effect throughout 2026. The measure, which originated with Royal Decree-Law 16/2025 and has been consolidated with the subsequent regulation that replaced it, gives property owners leeway to plan insulation, heating, or renewable works without the pressure of a tight schedule.
In practice, this means that those who have been considering changing windows or installing a heat pump no longer have to rush before the end of the year. The deadline to carry out the works and apply the deduction in the next income tax return extends until December 31, 2026, for individual homes.
What exactly changes for the Treasury and taxpayers
The Treasury maintains the three deduction rates that those who closely followed this regulation were already familiar with: 20%, 40%, and 60%, depending on the type of work and the energy savings achieved. The common requirement is always the same: to demonstrate the improvement through a prior energy certificate and another one after the renovation.
For a primary residence, it is sufficient to reduce heating and cooling demand by 7% to access the first rate, with a maximum base of 5,000 euros. If the work manages to reduce non-renewable primary energy consumption by 30%, or raises the energy rating to class A or B, the deduction jumps to 40% on a base of up to 7,500 euros.
Energy efficiency: the concept driving the entire tax reform
Energy efficiency is, in essence, achieving the same comfort at home while using less energy: better insulation, replacing old appliances, or upgrading an inefficient heating system. The Treasury has been using income tax as a lever for years so that this transition does not depend solely on environmental awareness but also on financial considerations.
The formula is not new, but the insistence with which it has been extended is. Each time the deadline was about to expire, the Government has chosen to extend it, which gives a clue as to where fiscal policy regarding housing is headed in the coming years.
Who can benefit and which works count
It is not necessary to be the sole owner or to live in the property to qualify for the deduction. The Treasury allows it to be applied to both primary residences and rented properties, as long as the lease is formalised before December 31, 2027.
The range of eligible works is broad: from changing windows and thermal insulation to installing aerothermal systems, heat pumps, or thermal solar systems. What matters is not the type of work itself, but the measurable result certified by a qualified technician before and after the intervention.
Homeowner communities: the longest deadline of all
Buildings with predominantly residential use have an advantage over individual homes. The Treasury has set for them a broader horizon: energy rehabilitation works in communities can be carried out until December 31, 2027, one year longer than for individuals.
This difference in timing is not coincidental. Reforms in entire buildings often require community agreements, shared budgets, and longer execution times, so the legislator has sought to prevent collective bureaucracy from undermining the tax incentive.
In these cases, the deduction can reach 60% on a maximum base of 15,000 euros, which can be accumulated over several years. For it to count, the improvement must achieve that same 30% reduction in non-renewable primary energy consumption, or place the building in class A or B.
Essential documents before starting the work
To apply for the deduction, the Treasury requires the submission of the energy efficiency certificate issued no more than two years before the start of the works, the subsequent certificate that verifies the actual improvement, invoices, and proof of payment by traceable means (transfer, card, or nominative cheque), and proof that any subsidised portion, if applicable, is excluded from the deductible base.
What comes after 2026: a consolidating fiscal transition
Everything suggests that this extension will not be the last. The Treasury has been extending deadlines for several years instead of letting them expire, which suggests a sustained commitment to energy rehabilitation as a fiscal tool, not just a one-off measure.
For those considering a renovation, the practical message is clear: there is plenty of time to plan calmly, compare budgets, and choose the right technician for the certificates, without the need to rush before the year ends.
You may also like
