56.3% of the buildings in Spain were built before 1980, and only 30,000 are renovated each year.
The European Commission demands that by 2050 all building stock should be emission-free. In Spain there are 9.7 million homes that would need to be renovated to be up to standard, but currently only 30,000 homes are renovated each year. The government wants to make a Copernican turnaround and reach the figure of 300,000 refurbished flats per year, but for this to happen, it will be necessary to encourage owners with aid and incentives.
Spain will go from rehabilitating 30,000 to 300,000 flats a year. The aim is threefold: to improve efficiency in order to adapt to EU energy standards; to get the brick sector, one of the most employment-intensive sectors, back into full swing in order to reactivate the economy ; and to reduce fossil fuel consumption in order to become less dependent on energy purchased from other countries.
In total, the government will spend 3.42 billion euros in aid and deductions. The amount barely represents 4.75 per cent of the 72 billion euros that Spain will receive from Brussels in the form of aid, and yet it could mobilise the equivalent of 18.75 per cent of the European manna: it will inject 13.5 billion euros into the economy and create 188,000 jobs, according to estimates by the Ministry of Transport, Mobility and the Urban Agenda.
WHAT DOES THE GOVERNMENT SUPPORT CONSIST OF?
With a disbursement of 3.42 billion euros, the government will cover the cost of up to 100% of the refurbishment of neighbourhoods, buildings or housing. In the case of neighbourhoods, priority will be given to economically vulnerable areas, and aid could go up to 100% if a sufficient reduction in non-renewable energy expenditure is achieved. In the case of entire buildings, it will be the residents' associations who will receive the funds, which will cover between 40% and 100% of the investment, to be used mainly for envelope elements (façades or roofs), common boilers or photovoltaic installations. The financing will be higher or lower depending on the efficiency achieved.
There will also be subsidies of 30% when renovating isolated elements of dwellings or buildings, such as replacing windows. This percentage would be in addition to the comprehensive subsidies.
In terms of deductions, homeowners or residents' associations will be able to benefit from personal income tax deductions for works on their main residence. If it is only one owner, they will have a deduction of 20% if they reduce their air conditioning demand by 7%; and 40% if the reduction in consumption reaches 30% or achieves an A or B energy certification. If the works are carried out in a building, the owners of the dwellings in the building will be able to enjoy a deduction of 60% if they reduce their non-renewable energy consumption by at least 30% or achieve an A or B energy rating.
- What is the procedure for applying for aid? In the case of personal income tax deductions, it will be sufficient to apply the deduction for improvement works in the main residence (or property rented for the main residence) in the income tax return. To apply for the subsidies, homeowners and residents' associations must go to the communities or town councils, which are the administrations in charge of distributing the funds. Since public subsidies are approved after the work has been carried out, it is most likely that the homeowners' association will need to apply for private financing. This means that, either simultaneously or after the application for the subsidies, they will have to approach a financial institution. Another way to do this is through the prescribing companies that carry out the works themselves. In the case of these companies in the sector, it is advisable to approach the community of owners or neighbourhood association with a closed package: with the project, the financing or the monthly fee per neighbour.