Supporting the ‘Green’ Transformation of Real Estate
Spain is continuing its steady course towards achieving climate neutrality. In 2026, massive tax incentives were approved for developers and private homeowners investing in sustainable building practices and ‘green’ renovations. This program aims to significantly reduce energy consumption across the country’s aging housing stock.
Property owners can now claim a tax deduction of up to 60% on renovation costs, provided the works lead to a reduction in non-renewable energy consumption by at least 30%. Eligible upgrades include the installation of aerothermal systems, improving the thermal insulation of facades and roofs, and integrating ‘Smart Home’ systems to monitor and optimize water and electricity usage.
For developers of new residential projects, there are reductions in municipal construction taxes (ICIO) if the building achieves top-tier environmental certifications such as BREEAM or LEED. These initiatives make eco-friendly technologies not only beneficial for the planet but also highly advantageous financially, which has already sparked a boom in construction innovation.
- Up to 60% deduction for green renovations
- Municipal tax discounts for green developers
- Promotion of energy-saving technologies