Housing Renovation Grants in Spain 2025: Complete and Updated Guide

Home

Thinking about renovating your home or residential building? 2025 is the perfect time to do it. Thanks to the European Next Generation funds and Spain’s Recovery, Transformation and Resilience Plan (PRTR), the government continues to offer a wide range of subsidies and tax incentives aimed at structural and energy-efficiency renovations.

In this post, you'll find everything you need to know about available grants in 2025, eligibility criteria, how to apply, and how to benefit from energy renovation tax deductions. If you want to maximize your real estate investment, keep reading!

What Is Considered a Housing Renovation?

Housing renovation refers to any intervention that improves a property’s living conditions, safety, accessibility, or energy efficiency. Common renovation projects include:

Structural or installation upgrades
Thermal insulation
Natural ventilation and lighting
Finishes and coatings
Energy efficiency improvements

Important: To qualify for the 2025 subsidies, your renovation project must lead to a measurable improvement in energy efficiency.

What's New for 2025?

One of the key updates for this year is the extension of the tax deduction period through 2026. This means that renovation projects completed in 2025 will still qualify for income tax (IRPF) deductions originally approved in 2021. These incentives aim to boost sustainable renovation efforts across Spain's residential housing stock.

2025 Energy Efficiency Tax Deductions

These are the available IRPF deductions based on the energy efficiency gains achieved:

20% deduction for projects that reduce heating and cooling demand by at least 7%.
40% deduction for projects that cut non-renewable primary energy consumption by at least 30% or improve energy rating to A or B.
60% deduction for building-wide renovations meeting the same goals.

Annual deduction limit: €5,000, with any excess deductible over the next four years, up to a maximum accumulated limit of €15,000.

Moreover, these grants are exempt from IRPF, meaning they won’t be included in your taxable income.

Other Available Grants in 2025

1. Building Renovation Support Program

Covers 40% to 80% of the total cost depending on the energy savings achieved.
Can reach 100% coverage in cases of economic vulnerability.
Subsidies range from €6,300 to €18,800 per home.

2. Energy Efficiency Improvements in Individual Homes

40% grant up to €3,000 per home.
Minimum project cost must be at least €1,000.

3. Project Drafting and Building Report Grants

Up to €3,500 for drafting the Building Report.
Up to €30,000 for full renovation project documentation.

4. ICO Guarantees for Financing

A new line of guarantees from the Spanish Official Credit Institute (ICO) will reduce financial risk for private bank loans aimed at renovation projects that improve energy efficiency.

Who Can Apply for These Grants?

Grants are available to:

Individual property owners (for primary residences or rental properties)
Homeowners’ associations (communities of owners)
Tenants, usufructuaries, cooperatives, and public entities

Tip: Review the specific terms and conditions of each grant program to ensure eligibility.

How to Apply for Renovation Grants in 2025

* For Tax Deductions

You’ll need to present a valid energy performance certificate proving that your project meets the minimum efficiency improvement requirements. You must also keep invoices and documents showing legal and traceable payments.

*For Other Grants

These are managed regionally by each autonomous community through their local Rehabilitation Offices. You can find detailed information and contact points on the official website of the Ministry of Transport, Mobility and Urban Agenda.

Additionally, you can consult with certified renovation agents or technicians through these offices for personalized advice on how and where to submit your project.

Final Thoughts: 2025 Is the Year to Renovate

Investing in a home renovation not only boosts your property’s value, but also gives you access to generous financial support, tax breaks, and preferential financing.

Whether you're a homeowner, a building manager, or a real estate developer, now is the time to go green and future-proof your property.