56.3% of buildings in Spain were built before 1980, and only 30,000 are renovated each year.
The European Commission requires that by 2050 all existing buildings be emission-free. In Spain, there are 9.7 million homes that would need to be renovated to meet this target, but currently only 30,000 homes are renovated each year. The government wants to make a radical change and reach the figure of 300,000 renovated homes per year, but to do so, it will need to encourage homeowners with subsidies and incentives.
Spain will increase the number of apartments renovated from 30,000 to 300,000 per year. The objective is threefold:to improve efficiency in order to adapt to European Union energy standards, to get the construction industry, one of the most labor-intensive sectors,working at full capacity in order to revive the economy, and to reduce fossil fuel consumptionin order to be less dependent on energy purchased from other countries.
In total, the governmentwill spend €3.42 billion on aid and tax deductions. The amount represents just 4.75% of the €72 billion that Spain will receive from Brussels in the form of aid, but it could mobilize the equivalent of 18.75% of European manna:it will inject €13.5 billion into the economy and create 188,000 jobs, according to estimates by the Ministry of Transport, Mobility, and Urban Agenda.
WHAT DOES THE GOVERNMENT'S AID CONSIST OF?
With an outlay of €3.42 billion, the government will cover up to 100% of the cost of renovating neighborhoods, buildings, or homes. In the case of neighborhoods, priority will be given to economically vulnerable areas, and aid could reach 100% if a sufficient reduction in non-renewable energy expenditure is achieved. In the case of entire buildings, the funds will be received by the residents' associations, covering between 40% and 100% of the investment, to be used primarily for envelope elements (facades or roofs), common boilers, or photovoltaic installations. The amount of funding will vary depending on the efficiency achieved.
There will also be subsidies of 30% when isolated elements of homes or buildings are renovated, such as replacing windows. This percentage would be added to the comprehensive subsidies.
As for deductions, homeowners or neighborhood associations can benefit from income tax deductions for work done on their primary residence. If there is only one owner, they will receive a 20% deduction if they reduce their air conditioning demand by 7%; and 40% if the reduction in consumption reaches 30% or they achieve an A or B energy certification. If the work is carried out on a building, the owners of the dwellings in the building will be entitled to a 60% deduction 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? Inthe case ofincome tax deductions, it will suffice to apply the deduction for improvement works on your primary residence (or property rented for primary residence) on your tax return. To apply forsubsidies, owners and neighborhood associationsmust go to the regional or local authorities, which are the administrations responsible for distributing the funds. Given that public subsidies are approved after the work has been carried out, it is likely that the homeowners' association will need to apply for private financing. This means that, either at the same time as or after applying for the subsidies, they will need to approach a financial institution. Another way to do this is through the companies that carry out the work itself. In the case of these companies in the sector, it is advisable to approach the homeowners' association or neighborhood association with a complete package: the project, the financing, and the monthly fee per neighbor.
via Expansión.com
