Next Generation EU Subsidies for Energy Rehabilitation of Buildings 2026

# Next Generation EU Subsidies for Energy Rehabilitation of Buildings 2026

The Next Generation EU subsidies for energy rehabilitation of buildings are, in 2026, the main public financing instrument to improve the energy efficiency of the Spanish residential building stock. Channelled through the Recovery, Transformation and Resilience Plan (PRTR), these aids can cover between 40 % and 80 % of the cost of the works depending on the type of action and the income level of the beneficiaries. If you own a multifamily building or are the owner of a single-family home, this article explains which programs are active, how much you can receive, and how to start the application process.

What are the Next Gen EU Subsidies for Energy Rehabilitation

The Next Generation EU funds are the largest economic recovery package in the history of the European Union, allocated with more than 750 billion euros at the European level. In Spain, a significant part of these resources is allocated to the energy rehabilitation of the built stock through the Ministry of Housing and Urban Agenda (vivienda.gob.es), which distributes them to the autonomous communities for direct management.

The main programs that channel these aids are:

• Program for aid to building-level rehabilitation actions (Program 3 of the Recovery Plan)
• Program for aid to actions to improve energy efficiency in homes (Program 4)
• Program for the preparation of the existing building book for rehabilitation (Program 1)
• Program for aid to vulnerable neighborhoods (Program 2), oriented to urban regeneration actions

Each autonomous community manages its own call for applications, so the deadlines, required documentation, and maximum amounts may vary. Always consult the electronic headquarters of the competent housing department in your region.

Who can apply for these aids in 2026

The beneficiaries of the Next Gen EU subsidies for energy rehabilitation are, according to the current regulation in 2026 (Royal Decree 853/2021, BOE nº 181):

• Owners of single-family homes (detached or in a row)
• Owners' associations of multifamily buildings
• Groups of owners' associations
• Single owners of buildings predominantly used for residential purposes
• Public administrations and public sector entities that are owners of homes

To access the highest subsidy tiers, income limits apply. Households with income below certain thresholds (calculated based on the IPREM and the number of family members) can access higher coverage percentages. Check the updated thresholds in your autonomous community's call, as they may have been revised for 2026.

Important: It is not necessary to be the owner of the habitual home. Owners of rented homes can also apply for these aids, provided the property is intended for residential use.

What works are eligible for Next Gen EU funding

Eligible actions must demonstrate an improvement in energy efficiency through an energy efficiency certificate (CEE) before and after the works, issued by a competent technician and registered in the official register of the autonomous community (AEAT does not manage this register; it is the responsibility of each CCAA).

The most common works that are funded include:

• Thermal insulation of facades, roofs, and floors in contact with the exterior
• Replacement of windows and carpentry with high-efficiency systems
• Installation or replacement of heating and cooling systems with high-efficiency equipment (heat pumps, air-source heat, geothermal)
• Installation of mechanical ventilation systems with heat recovery
• Installation of renewable energy systems for self-consumption (photovoltaic solar, solar thermal)
• Improvement of the building's thermal envelope as a whole

The minimum improvement requirement varies by program: Program 3 requires a reduction of at least 30 % in the consumption of non-renewable primary energy, while Program 4 may require improvements of at least one letter in the energy rating.

How much money can you receive: amounts and percentages

This is the point that interests property owners and associations the most. The maximum amounts established in Royal Decree 853/2021 (BOE nº 181) and its modifications are the following, with an indicative character for 2026:

Program 3 (building-level rehabilitation)

• Up to 40 % of the eligible cost in general
• Up to 65 % if a reduction of non-renewable primary energy consumption exceeding 60 % is accredited
• Up to 80 % for vulnerable households or those at risk of social exclusion
• Maximum amount per home: up to 18,800 € in the general case, and up to 27,000 € for more extensive actions (according to the regulation in force in 2026; verify the exact amount in your CCAA's call)

Program 4 (improvement of energy efficiency in homes)

• Up to 40 % of the cost for actions that improve the energy rating by at least one letter
• Up to 65 % if the improvement is two letters or more
• Up to 80 % for vulnerable households
• Maximum amount per home: up to 3,000 € for simple actions and up to 8,000 € for combined actions (according to the regulation in force in 2026)

Practical Example 1: A homeowners' association of 10 homes in Madrid undertakes facade and roof insulation for a total cost of 120,000 €. If they accredited a 35 % reduction in non-renewable primary energy consumption, they can access 40 % of the subsidy: 48,000 € in direct aid (4,800 € per home). If the reduction exceeds 60 %, the subsidy increases to 65 %: 78,000 € in total (7,800 € per home).

Practical Example 2: A single-family home owner in Seville installs an air-source heat pump and improves the roof insulation for 15,000 €. If the improvement moves the energy rating from E to C (two letters), they can receive up to 65 % of the eligible cost: 9,750 € in subsidy, with a maximum limit according to the Andalusian call in force.

How to apply for Next Gen EU Subsidies for Energy Rehabilitation

The application process is carried out before the autonomous community, not before the Ministry of Housing or the AEAT. The general steps are:

1. Obtain the energy efficiency certificate before the works, issued by a competent technician and registered in your CCAA's register.
2. Order a project or technical memorandum of the planned actions, signed by an architect or engineer.
3. Submit the application in the electronic headquarters of your autonomous community's housing department, before starting the works (in most calls, starting the works before the grant approval decision implies the loss of the aid).
4. Carry out the works with an authorized installer and keep all invoices.
5. Obtain the energy efficiency certificate after the works, which certifies the improvement achieved.
6. Submit the justification to the CCAA with invoices, certificates, and other required documentation.
7. Receive the subsidy payment, which may be total or in several tranches according to the call.

Common error: Starting the works before receiving the grant approval decision. In most calls, this results in the automatic loss of the right to the subsidy. Always check if your CCAA allows the advance start of works under a responsible declaration.

Compatibility with deductions in the IRPF

A common question is whether the Next Gen EU subsidies are compatible with deductions in the IRPF for energy efficiency improvement works (Article 92 bis of Law 35/2006 of the IRPF, according to the regulation in force in 2026).

The answer is yes, they are compatible, but with an important nuance: the basis for the IRPF deduction is calculated on the cost of the works minus the amount of the received subsidy. That is, you cannot deduct the portion of the expense already financed with public funds (AEAT, consults on deductions for energy efficiency and taxation of subsidies).

Additionally, the received subsidy taxes in the IRPF as a capital gain or as a real estate income, depending on the case. Consult with your tax advisor or use our energy rehabilitation deduction calculator to estimate the net fiscal impact.

Deadlines and status of calls in 2026

The Next Generation EU funds have a temporal horizon of the year 2026, the deadline for the execution and justification of projects funded under the PRTR. This means that, as of June 2026, the time available to start new actions is very limited.

Some autonomous communities have already closed their calls or are in the justification phase. Others maintain open calls with available funds. Check the current status in:

• The electronic headquarters of your autonomous community's housing department
• The official website of the Ministry of Housing (vivienda.gob.es)
• The official website of the Spain Government's Recovery Plan (planderecuperacion.gob.es)

If your autonomous community has already closed the Next Gen EU call, check if there are autonomous calls or lines of financing from the ICO (ico.es) for energy rehabilitation, which may complement or replace these aids.

Complementary financing: ICO lines for rehabilitation

The Institute of Official Credit (ICO) offers specific financing lines for energy rehabilitation that can be combined with Next Gen EU subsidies. These lines allow financing the part of the cost not covered by the subsidy at preferential interest rates.

Check the updated conditions in ico.es, as interest rates and amortization periods are periodically revised. In 2026, the ICO maintains active lines specifically for owners' associations and for individual home owners.

Sources and reference legislation

• Royal Decree 853/2021, of 5 October, regulating the aid programs in the field of residential rehabilitation and social housing of the Recovery, Transformation and Resilience Plan (BOE nº 181, of 30 July 2021)
• Ministry of Housing and Urban Agenda — vivienda.gob.es
• Recovery, Transformation and Resilience Plan — planderecuperacion.gob.es
• AEAT — Binding consultations on deductions for energy efficiency and taxation of subsidies
• Institute of Official Credit (ICO) — ico.es
• Law 35/2006, of the IRPF, Article 92 bis (deductions for energy efficiency improvement works), according to the wording in force in 2026
• Autonomous specific calls: consult the electronic headquarters of your autonomous community's housing department