40% Tax Deduction for Improving Residential Energy Efficiency

Spanish tax regulations include incentives to promote the transition toward more sustainable housing models. Recently, the feasibility of applying the 40% deduction for works aimed at improving energy efficiency within the scope of Personal Income Tax (IRPF) has been analyzed.

What the DGT has ruled

The inquiry focuses on determining the possibility of applying the deduction for energy efficiency improvement works. The analysis is based on the regulatory framework established by the IRPF Law (Law 35/2006), as well as the provisions introduced by RD-law 19/2021 and RD-law 8/2023. The ruling establishes the conditions under which actions carried out in a dwelling may entitle the owner to this tax benefit.

What it means for you

This provision has a direct impact on homeowners, whether regarding their primary residence or rental properties. If you have made investments in your property aimed at reducing energy consumption or improving thermal performance, you may be entitled to a 40% deduction on the costs of such works, provided that the technical and temporal requirements set by law are met. It is essential to distinguish that the benefit does not depend solely on the nature of the work, but on its alignment with the efficiency parameters required by current regulations.

What you should do

To ensure the correct application of this incentive, it is necessary to verify that the works comply with the energy efficiency improvement standards required by the regulations. It is recommended to collect all technical documentation that proves the reduction in non-renewable primary energy consumption or the improvement in the property's energy rating. Since the application of these deductions is subject to specific criteria within the green incentive regulations, each situation must be analyzed individually to confirm whether the necessary thresholds are met.