Real estate, Renovation

Energy renovation in Spain: the complete guide

April 3, 2025

Real estate, Renovation

Introduction

Energy-efficiency renovation is the major new challenge facing the Spanish real estate market. Homeowners and tenants are all concerned. Like most countries in the world, Spain is facing major environmental challenges and rising energy costs, but these difficulties are exacerbated by the low quality of its ageing housing stock: 80% of homes are in need of renovation, even though only 8.5% of listings mention it.

Improving the energy efficiency of buildings is therefore the number 1 priority. To help you make sense of this "hot" issue, the experts at Terreta Spain have put together this comprehensive guide to energy renovation in Spain.

What is energy renovation?

Definition

Let's start by setting out the concept: energy optimization encompasses all types of work and improvements designed to enhance the energy efficiency of an existing building. The aim is to kill two birds with one stone, drastically reducing energy consumption in the home while improving occupant comfort.

In concrete terms, what solutions can be envisaged to achieve this?

Wall and roof insulation;
Changing windows
Installation of more efficient heating and air-conditioning systems;
Daily use of green energies, such as rainwater harvesting, solar energy, geothermal energy and biomass;
Wind and hydroelectric power for homes built in windy areas or near water.

The importance of energy renovation in Spain

In Spain, thermal requalification is absolutely crucial for a number of reasons:

The country must reduce its energy dependence :

Spain imports a large proportion of its energy, making it vulnerable to fluctuations in international prices. The energy crisis was brought into the open by the war in Ukraine. In 2022, according to Eurostat, Spain's energy dependency was over 74%. After considerable efforts, by 2023, dependence had fallen to 68%, but there's still a long way to go.

The country and the continent of Europe have made the fight against climate change a priority:

The construction sector is responsible for 40% of Europe's energy consumption. In Spain, almost 60% of buildings were constructed before the first regulations introducing minimum energy efficiency criteria (the NBE-CT-79 standard). The country has to comply with EU targets, and energy renovation is now a priority to reduce greenhouse gas emissions.

Housing comfort must be improved:

Contrary to popular belief, the Spanish climate is highly contrasted: hot, humid areas, colder ones, etc. Good thermal insulation is essential in both summer and winter for the comfort of occupants.

Focus on energy efficiency and renovation at European level

Let's take this a step further, to get a good idea of what's at stake when it comes to energy renovation in Spain: what are the EU's demands?

Reducing greenhouse gas emissions : the aim is to cut emissions by at least 55% compared with 1990 levels by 2030, and to achieve carbon neutrality by 2050.
Energy efficiency: the EU wants to improve energy efficiency by just over 30% by 2030.
Renewable energies : the target has recently been revised upwards, and the EU is calling for the share of renewable energies in final energy consumption to reach 42.5% by 2030.
Energy performance of buildings: the Energy Performance of Buildings Directive (EPBD) requires all new buildings to have near-zero energy consumption by 2028.
Renovation of existing buildings: the EU is strongly encouraging the renovation of existing buildings to improve their energy efficiency. The aim is to double the rate of energy renovation by 2030.

Energy renovation in Spain: what are the legal requirements and standards to be aware of?

European standards and regulations

Like other European countries, Spain must comply with EU directives on the energy performance of buildings if the old continent is to meet its targets for reducing energy consumption and CO2 emissions. Here are the details:

Directive 2010/31/EU on the energy performance of buildings.
Directive 2012/27/EU on energy efficiency.

Specific local regulations by region

Each autonomous community may have its own complementary regulations. For example:

In Madrid, the Air Quality and Climate Change Ordinance encourages energy-efficient building renovation;
In Catalonia, Decree 28/21 amends the Catalan Civil Code to simplify the adoption of energy-related works in condominiums.
The Basque Country is known for having some of the most advanced energy efficiency standards in the country.

National regulations

Regardless of variations between autonomous communities, Spain has put in place a common set of energy regulations that apply uniformly throughout the country to improve the energy efficiency of the Spanish building stock:

The obligation since 2013 to present an energy performance certificate (EEC) when selling or renting a property.
By 2033, all homes offered for sale or rent will have to have at least a class D energy certificate.

Are you planning an energy renovation project? Contact Terreta Spainyour trusted partner.

Why invest in energy renovation in Spain?

Economic and ecological benefits

Need we say it? There are many advantages to investing in energy renovation.

This makes it possible to :

Substantial savings on energy bills:

Estimates vary, but the IDAE (Instituto para la Diversificación y Ahorro de la Energía) has calculated that a complete energy renovation could save 50 to 80% on the annual bill.

Reducing our carbon footprint:

Properly carried out, energy renovation can reduce a building's energy consumption by 40-70%.

Increase property value and rental profitability:

It's mechanical, and it's essential for investors. The value of an energy-efficient home on the real estate market rises sharply. It is estimated that energy-efficient properties rent faster and more expensively (10-15%), and sell for 10% more than non-renovated, inefficient homes.

Comply with local regulations:

Spain's Technical Building Code (CTE ), updated in 2019, is increasingly stringent when it comes to energy efficiency for new and renovated buildings.

Terreta Spain's advice: get started as soon as possible, and you'll win on all fronts. Terreta Spain is your renovation partner in Spain, contact us to arrange an audit.

Energy renovation grants and subsidies in Spain

Spanish government subsidies

The Building Energy Rehabilitation Program (PREE)

Through the Institut pour la Diversification et l'Économie d'Énergie (IDAE ), part of the French Ministry of Ecological Transition, this program of grants for the energy renovation of existing buildings covers various improvements, such as :

Modernization of the thermal envelope (e.g. replacement of windows);
Installation of efficient heating and cooling systems;
Replacing fossil fuel thermal generation with renewable sources;
The use of regulation and control technologies ;
Improving energy efficiency through lighting.

IDAE grants for improving the energy efficiency of homes and buildings vary according to the type of work involved:

Residential buildings: 20% to 50% of costs can be subsidized.
Individual dwellings or commercial premises located in buildings: between 20% and 40%.
Assistance for actions that improve the energy label by reaching the top two levels (A or B) or by moving up at least two letters.

The Ministry of Transport and Sustainable Mobility's assistance program

It is intended for main residences. The grant covers 40% of the cost of the work, with a ceiling of 3,000 euros per property, and a minimum cost of 1,000 euros. Assistance is granted only if a reduction of at least 7% in heating and/or cooling demand and a 30% reduction in energy consumption are achieved.

Applications are made directly to the relevant town hall.

Next Generation EU program

Through Next Generation EU, the €800 billion European fund created in 2020, the European Union is providing substantial financial support for energy renovation in Spain (€80 billion non-refundable by 2026 and the same amount in the form of credit). The country is one of the leaders in this transformation process.

Individuals can finance between 40% and 80% of their energy renovation project. For more information, click here.

Regional aid for renovation

Some autonomous communities also offer grants for the energy rehabilitation of residential buildings and condominiums:

Catalonia, whose aid program is available here
Andalusia and the RenUEva program.

Taxation of energy renovation

The part of the work not covered by these subsidy schemes can give rise to a tax deduction of up to 60%.

Reductions in property tax (IBI)

Some local authorities offer reductions on IBI (property tax) for buildings or homes incorporating energy efficiency measures.

Reduced tax on buildings, installations and works (ICIO)

This municipal tax, required for any installation or work requiring a license, is also increased for energy improvements.

IRPF deduction

For the 2023 tax return campaign, all taxpayers who carried out improvement or rehabilitation work on their main residence or residential buildings to improve energy efficiency were eligible for deductions on IRPF. These deductions will be maintained for 2024.

Up to 20%, with a ceiling of 5,000 euros per year for actions reducing heating and cooling demand by at least 7%.
Up to 40%, with a ceiling of 7,500 euros per year for a reduction of at least 30% in non-renewable energy consumption, or for an improvement in the energy classification of the property, reaching one of the two highest classifications.
Up to 60% for renovation work to improve energy efficiency in residential buildings.

Please note: to claim this deduction on your tax return, you need to provide proof of the work carried out and submit two energy certificates, one issued before the energy improvement work was carried out, the other after.

The main techniques and solutions for energy renovation

Now that you understand the principle, let's get down to the nitty-gritty. If you've just bought a property, or are about to embark on your real estate project, here's what you need to consider in terms of energy-saving work.

Thermal insulation of walls, roofs and windows

Thermal insulation is both the foundation and the cornerstone of effective energy renovation. Without it, it's impossible to reduce heat loss in winter and overheating in summer.

How to insulate effectively

Insulating from the outside (SATE) avoids thermal bridges, improves thermal inertia and consequently the habitability and comfort of the property;
Attic and roof insulation;
Install double or triple glazing. In France,ADEME claims that this measure alone could reduce energy bills by 20%.

Installing new-generation heating and air-conditioning systems

Older heating and air-conditioning systems are far less efficient than those currently on the market. What's more, most homes in Spain are equipped with neither.

The most energy-efficient options to consider are

Aerothermal heat pumps: extract heat from the outside air to heat or cool interiors;
Condensing boilers: they recover heat from combustion fumes. This makes them more energy-efficient than conventional boilers.
High-efficiency reversible air-conditioning systems.

The use of renewable energies

Whenever possible, we should give priority to renewable energies. This is becoming increasingly easy in Spain. In 2023, the country produced 15% more renewable energy than in 2022. That's more than 50% of national electricity production.

Individuals can use the following renewable energies:

Photovoltaic solar panels for self-consumption;
Solar water heaters ;
Biomass systems;
Rainwater harvesting systems.

Optimizing lighting and electrical appliances

Switching to LEDs and equipping your property with energy-efficient appliances will complete your energy renovation project.
For the less geeky, installing an intelligent energy management system can help optimize your consumption. Connected to the home network, this system monitors the consumption of each appliance in real time, adjusting usage according to needs, occupant preferences and energy rates. With this, you'll reduce your bills, your environmental impact and you (or your tenants) will enjoy optimum comfort.

The energy-efficiency renovation process in Spain: what steps do I need to take?

Are you convinced? Here are the steps you need to take to renovate your new property in Spain:

Energy audit :

It assesses the building's current energy performance, identifying weak points and opportunities for improvement.

Work planning and solution arbitration :

You need to define your renovation objectives and select the right techniques and materials.

Budget to be drawn up.
Schedule to be defined.
Select qualified companies and professionals:

Be careful: you need to look for certified energy renovation companies. Never get started until you've obtained detailed estimates and proof of certification.

Carrying out the work:

As with all types of work, you need to monitor the site and ensure compliance with current standards.

Monitoring and evaluation of the renovation:

Don't forget to measure performance after the work has been completed. This will enable you to make any necessary adjustments.

Don't go it alone, Terreta Spain is your trusted partner in Spain. Our specialists can help you with the energy renovation of your property. Get in touch with them.

And if you're looking for a complete guide to property renovation in Spain, read ours: "Everything you need to know about property renovation in Spain".

Energy renovation costs and timescales in Spain?

As with all types of work, the price of energy renovation varies considerably according to the extent of the work undertaken and the initial condition of the building.

Here are some estimates based on IDAE data:

External wall insulation: €50 to €100/m²;
Double- or triple-glazed windows: €300 to €800 per window;
Installation of photovoltaic solar panels: €4,000 to €8,000 for a standard residential installation.

It should be noted that these investments pay for themselves in the medium term thanks to the energy savings achieved.

Terreta Spain's advice: don't forget the possible extra costs:

Building permits generally cost between €250 and €300/m2, but can exceptionally cost up to €6,000, depending on the municipality.
The architect's fee is equivalent to around 10% of the total cost of the work.
Energy certification costs between €100 and €300, depending on the size of the property.

For a complete energy renovation of your property, allow around 3 to 6 months.

Energy renovation: mistakes to avoid

There are 4 major mistakes to avoid when undertaking an energy renovation project:

Choosing solutions unsuited to the local climate:

As we've said, Spain has a diverse climate. Let's take a simple example: over-insulating in a hot region makes no sense, and not protecting yourself from humidity when you live near the sea doesn't either.

Lack of auditing and advance planning:

Without a thorough audit, there can be no effective renovation. This is an essential step. It will enable you to identify your priorities and optimize your investments.

Underestimating costs and deadlines:

As with any job, deadlines and costs are always higher than anticipated. Your budget needs to be realistic, and you need to allow for unforeseen circumstances. Delays and overruns are common, so factor them into your schedule.

Neglect of ventilation:

When undertaking insulation work, ventilation can be a problem. Particular attention must be paid to avoid problems of humidity and indoor air quality.

Conclusion

Energy renovation plays a decisive role in the transformation of Spain's housing stock. Homeowners who undertake energy renovation will see the benefits on several levels:

Bills will go down;
The property will rent better, faster and more expensively;
The added value will be greater;
They will meet the standards and needs of future generations.

Don't hesitate to consult qualified professionals and find out about the grants available in your area to get started on your energy renovation project. There are plenty of them. With a well-planned approach and the right choices, you can transform your home into a comfortable, energy-efficient space and boost its profitability.

Contact Terreta Spain to start your energy renovation project.

FAQ : Energy renovation in Spain, the complete guide

What is energy renovation and why is it important in Spain?

Energy renovation includes all work aimed at improving the energy efficiency of an existing building. It is crucial in Spain to reduce the country's energy dependency, combat climate change, improve housing comfort and comply with EU targets.

What are the main benefits of energy renovation for homeowners?

Benefits include substantial savings on energy bills (up to 50-80%), a reduced carbon footprint, increased property value and improved rental yields.

What are the main energy-efficiency renovation techniques?

Key techniques include thermal insulation of walls, roofs and windows, installation of new-generation heating and air-conditioning systems, use of renewable energies, and optimization of lighting and electrical appliances.

Are there any financial incentives for energy renovation in Spain?

Yes, there are a number of subsidy programs, including the Programme de Réhabilitation Énergétique des Bâtiments (PREE), Spanish government grants, regional subsidies, and European funds via the Next Generation EU program.

What are the tax benefits of energy renovation in Spain?

Tax benefits include reductions on the Impôt sur les Biens Immobiliers (IBI), reductions on the Impôt sur les Constructions, Installations et Travaux (ICIO), and deductions on the IRPF of up to 60% for certain energy improvements.

What are the steps involved in an energy renovation project?

The steps include an energy audit, work planning, budgeting, selection of qualified contractors, execution of the work, and post-renovation monitoring and evaluation.