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Guide · Grants & tax savings

Grants, IBI and tax discounts for energy upgrades in Spain

What financial help exists for solar, heat pumps and other energy upgrades on the Costa Blanca and Costa del Sol — and how to find out what applies to your home.

Up to 50%

off your yearly IBI property tax in some towns

Up to 95%

off the one-off ICIO works tax in some towns

20–60%

income tax relief for qualifying efficiency works

The short answer

Direct grant schemes in Spain come and go, and details change by region and town. Today the most reliable savings tend to come from local council tax discounts and income tax relief, rather than cash grants.

We check the current position for your town when we prepare your quote, so you know what you can realistically claim.

IBI discounts (property tax)

Many councils (ayuntamientos) offer a bonificación on the IBI — the yearly property tax — for homes that install solar, often for several years. Each council sets its own percentage, duration and conditions, and some require you to apply within a set period after installation.

ICIO discounts (works tax)

Some councils also reduce the ICIO, the tax on construction works charged when the installation is registered. This is a one-off saving on the installation itself, and it often has to be requested before works start.

Income tax relief (IRPF)

Spain offers income tax deductions for works that improve a home's energy efficiency: 20% for works that cut heating and cooling demand by at least 7%, and 40% for works that cut non-renewable energy use by at least 30% or bring the home to an A or B rating. These apply to works carried out up to 31 December 2026; a 60% deduction for works on residential buildings as a whole runs to 31 December 2027.

Eligibility depends on your Spanish tax residency and on energy certificates issued before and after the works — so ask your gestor or tax adviser before you start.

How we help

We provide the technical paperwork councils and tax advisers ask for — installation certificate, registration and the before-and-after energy certificates — and point you to the right application.

Council tax discounts by town

Councils can change these every January, and most must be applied for. Treat this as a starting point — we confirm the current rules for your town with your quote. Entries marked “Unverified” come from third-party summaries, not the council's own text.

Jávea (Xàbia)

Official source
IBI (yearly property tax)
25% for 3 years (homes)
ICIO (one-off works tax)
Check with the council

Apply to the council; applies from the tax year after you apply. Later amendments may add a yearly cap.

Source: BOP Alicante, 10 Dec 2020 — Jávea IBI ordinance

Last checked: 13 October 2026

Calpe

Official source
IBI (yearly property tax)
50% (max €400 a year) for 3 years, then 25% for 2 years
ICIO (one-off works tax)
Check with the council
Source: BOP Alicante — Calpe IBI ordinance (copy of the official bulletin)

Last checked: 13 October 2026

Estepona

Official source
IBI (yearly property tax)
No solar discount found in the ordinance
ICIO (one-off works tax)
50% on the cost of the solar system
Source: Ayuntamiento de Estepona — 2025 tax ordinances

Last checked: 13 October 2026

Dénia

Unverified — confirm with the council
IBI (yearly property tax)
50% to 20% (by cadastral value) for 3 years, then half that rate for 2 more years
ICIO (one-off works tax)
Up to 95%

Reported minimum: 1.5 kW per 100 m² built. Applied for through SUMA.

Source: Third-party summary (solarmunicipio.es)

Last checked: 13 October 2026

Teulada (Moraira)

Unverified — confirm with the council
IBI (yearly property tax)
50% for 3 years
ICIO (one-off works tax)
Check with the council

Reported: apply within 3 months of installation, through SUMA.

Source: Third-party summary (installer website)

Last checked: 13 October 2026

Altea

Unverified — confirm with the council
IBI (yearly property tax)
25% for 3 years
ICIO (one-off works tax)
Check with the council
Source: Third-party summary (installer website)

Last checked: 13 October 2026

Marbella

Unverified — confirm with the council
IBI (yearly property tax)
Reported removed for new installations
ICIO (one-off works tax)
Check with the council
Source: News report, March 2025 (marbella24horas.es)

Last checked: 13 October 2026

Alicante, Benissa, Málaga, Benahavís and Sotogrande (San Roque): ask us and we will check the current ordinance for your property.

Income tax source: Agencia Tributaria — extension of energy-efficiency deductions (2026) (official, last checked 13 October 2026). This guide is general information, not tax advice.

Common questions

Are there cash grants for solar panels in Spain right now?

Grant schemes open and close, and vary by region. At the moment the most dependable savings usually come from IBI and ICIO council tax discounts and income tax relief. We check what is open when we quote.

Can non-residents claim the income tax deduction?

The IRPF deductions are for Spanish tax residents. Non-residents can still benefit from council IBI and ICIO discounts where their town offers them.

Do I have to apply for the IBI discount?

Almost always, yes — and often within a set time after installation. We give you the documents you need to apply.

Brands we work with

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