Carrying out energy-efficiency works in your home not only lowers the bill: it can also reduce your taxes. We review the deductions for energy efficiency and the other fiscal advantages associated with these works, including the requirements the Tax Agency imposes so you don't lose them.
IRPF deductions for improvement works
The State has applied three deduction tiers depending on the ambition of the work: 20% of the amount invested if you reduce the heating and cooling demand of your main residence (or rented as such) by at least 7%; 40% if you reduce non-renewable primary energy consumption by at least 30%, or achieve an A or B rating; and 60% for energy rehabilitation works at building level. Each tier has its own annual maximum base. These deductions have been extended for successive fiscal years, so check their validity for the year in which you carry out the work.
The requirement that decides everything: the two certificates
The deduction is not certified by invoices but by two energy certificates: one before the work and another afterwards that proves the required improvement. Without the initial certificate there is no possible deduction, no matter how excellent the work. Correct order: certificate before, work after, final certificate, and payments always by bank transfer or card (cash is not deductible).
The other fiscal advantages of the work
10% VAT on renovation and repair works on housing if the usual requirements are met (private individual, home older than 2 years and materials below the limit). Municipal exemptions: many town councils reduce the ICIO on the permit and grant IBI discounts for years for installing photovoltaic self-consumption or improving efficiency — these are requested from the town hall and vary widely between Torrevieja, Orihuela or Guardamar. And the direct regional subsidies, which we cover in our guide to grants for energy rehabilitation in the Valencian Community (remember: the subsidised portion cannot be deducted at the same time).
Is it worthwhile fiscally?
Adding deduction, reduced VAT and exemptions, the real cost of a well-planned energy project can be far below the initial budget — and the home gains market value and selling points. If your horizon is to sell in the medium term, combine this reading with our calculation in whether it pays to improve the rating before selling. And to know what your improved home would be worth in your specific area, request our free valuation; from the real estate advisory we guide you with the rest. Well planned, efficiency pays twice: on the bill and in the Tax Agency.
