Property in Spain: the home improvements you can get a 60 percent tax deduction for

Property in Spain: the home improvements you can get a 60 percent tax deduction for
These are the home improvements that could help you secure a 60 percent tax reduction. Photo: RachelW1 / Pixabay
As part of the Spanish government's ‘Recovery, Transformation and Resilience Plan’, it's possible to get a tax deduction of up to 60 percent for energy-efficient renovations on your home. Here are some home improvement ideas that could help you achieve this.

The Spanish government’s ‘Recovery, Transformation and Resilience Plan’, which it presented to the EU to help secure €140 billion over the next six years, includes among its measures the possibility of deducting up to 60 percent of income tax if renovations are undertaken on your primary residence to improve its energy efficiency. 

The document indicates that there will be a 20 percent deduction for undertaking certain works that reduce the demand for heating and cooling in the home by at least seven percent.

A 40 percent deduction will be allowed for reducing non-renewable primary energy consumption by 30 percent.

Finally, a 60 percent deduction will be available for the completion of rehabilitation works in complete buildings, by reducing the demand for non-renewable primary energy by at least 30 percent, or by improving the energy rating of the property to an ‘A’ or ‘B’.

This is in addition to the government’s Housing Plan, which it launched in 2018 and has now extended until December 31st 2022, because of the Covid-19 pandemic. The Housing Plan gives grants for essential home improvements of up to €12,000 for things such as conservation, safety and access, as well as energy efficiency of the home and urban renovation.

READ ALSO – EXPLAINED: How foreigners in Spain can get grants for home improvements

Here are several home improvement ideas you can do in order to improve the energy efficiency of your home and benefit from these tax reductions.

Install energy-efficient double glazing
Windows are one of the most important elements when it comes to securing the energy efficiency of your home. Therefore, it is very important to make sure they are insulated correctly and have good thermal transmittance. Sto Ibérica, a company that deals with energy-efficient renovations, recommends installing double glazing with an air chamber of at least 10 mm to maximise energy efficiency.

Install thermal insulation
Thermal insulation can be installed in the walls, floors, and ceilings of your property to improve the overall energy efficiency, keeping it warm in winter and helping it to stay cool in summer. Insulation can be added to the facade of the building, although to make it more energy efficient, an interior thermal insulation system should be installed.

Control the amount of sunlight
It’s essential to control the amount of direct sunlight that enters your home and change it according to the seasons. You want to allow lots of direct sunlight in winter to help heat up your home, so you don’t use so much heating and you want to direct it away from your home in summer, so you don’t use the air-conditioner or fans so much. estimates that the overall energy savings from installing high-performance technologies and daylight controls are as high as 75 percent. These could include things such as smart blinds, sunshades and awnings.

Eliminate drafts
It’s important to identify and repair any air leaks or drafts in your property by sealing the gaps between the doors and windows and the walls. With these measures, it will be possible to save up to 50 percent in the consumption of air conditioning in the home, according to Sto Ibérica.

Improve ventilation systems
While you want to eliminate drafts and air leaks, it’s also important that your property is well ventilated to avoid too much humidity or dampness and to help it cool down in the summer. Natural ventilation is important, but Eco Home Essentials also suggests installing the option of a controlled ventilation system to maintain good air quality in your home when the outside air is not so favourable. This will also help improve efficiency.   

Install efficient air conditioning and heating
In general, installing air conditioning units add to climate change issues, but if you have an old or inefficient unit, then it’s definitely worth exchanging it for a new one. According to the Alliance to Save Energy, air conditioning systems account for 40 to 50 percent of the energy consumed in a home. For this reason, it is best to buy the most energy-efficient option. In terms of heating, there are several energy-efficient options, from condensing boilers to low-temperature radiators, underfloor heating, and smart thermostats.

Implementation of automation systems
Home automation allows the intelligent management of the home to be controlled and automated. Not only does this provide greater comfort and security, but it also helps to efficiently manage the use of water, electricity, and fuel, making better use of resources and using the lowest cost hourly rates.

READ ALSO: Spain’s new electricity rates for 2021: the tricks to help you save up to €300 a year

Use renewable energies
Along with the above improvements, one of the best things you can do is to use renewable energies, such as installing solar panels; getting a biomass boiler, which uses natural fuel; and using LED light bulbs. As well as this, you can make sure your electrical appliances have a low consumption energy label. 

For more information on how to undertake this type of project, the Institute for the Diversification and Saving of Energy (IDEA), along with the Higher Council of Architects of Spain (CSCAE), has prepared a guide that focuses on the optimisation of energy efficiency when renovating buildings. 

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