The Council of Ministers has approved Royal Decree-Law 7/2025, a package of urgent measures aimed at strengthening the sustainability of Spain’s electricity system. Among the key points of the decree is the extension of tax incentives on the IBI (Property Tax) of up to 50% and on the ICIO (Tax on Construction, Installations and Works) of up to 95%, applicable to aerothermal and geothermal installations.
This decision updates the revised text of the Local Tax Authorities Act, allowing municipalities to offer these deductions to both individuals and homeowners’ associations that choose renewable energy-based climate control systems.
The decree also includes an amendment to the Horizontal Property Law to clarify approval requirements in homeowners’ meetings regarding the installation of renewable technologies. For the first time, aerothermal and geothermal systems are specifically mentioned, providing legal certainty and removing barriers to their adoption.
The sector’s reaction has been positive. Agremia, the Association of Companies in the Installations and Energy Sector, described the measure as a major milestone towards thermal electrification. Its president, Emiliano Bernardo, stressed that “aligning these incentives with those already in place for solar energy is a fair and necessary step to achieve decarbonisation targets.”
This regulation will make it possible to replace heating systems in up to 270,000 homes per year through 2050, complementing other instruments such as Energy Savings Certificates (CAEs) and existing aid schemes.
With these measures, the Government is giving a strong boost to the efficient electrification of buildings and the use of renewable energies, both essential for achieving a more sustainable building stock aligned with climate commitments.