Beware of the 2026 Income Tax: not all aid is tax-free. Subsidies for rehabilitation, accessibility, or home renovations received during 2025 must be included in the income tax return, but not all have the same tax treatment.
The general rule is clear:
- Many aids do tax as capital gain
- But those linked to European funds may be exempt
The problem is that many appear automatically in the draft even if they don't have to be declared.
What aid you have to declare in the Personal Income Tax
Public aid for works in homes -such as installation of elevators, renovations or conservation- usually pay tax as “other capital gains”.
This means that:
- They are declared in the year in which they are collected
- They are integrated into the general base
- They can increase what you pay to the Treasury
Common error: to think that because it's a subsidy “it doesn't count”.
What aids are exempt and you should not pay
Here is the key that many are unaware of. Aid linked to energy efficiency financed with European funds (Next Generation) is not taxed in the IRPF, even if it appears in the tax data.
Among them:
- Energy rehabilitation programs
- Self-consumption and renewable energies
- Improvements that reduce energy consumption
Important: They must be manually excluded from the declaration if they appear.
The deductions you can apply (and which many do not take advantage of)
Furthermore, these reforms may entitle you to significant tax deductions:
- 20%
- 40%
- up to 60%
Depending on the type of work and the energy savings achieved.
With a limit:
- Up to 5,000 euros annually
- Maximum accumulated of 15,000 euros
Key condition: energy certificates before and after the work
The most common error: confirming the draft without reviewing
One of the most frequent errors is to accept the draft tax return just as the Tax Agency sends it.
But beware:
- It may include aid that is not taxable
- Information may be missing
- It may make you pay too much. The final responsibility is always the taxpayer's
If you have overpaid, you can:
- Request a rectification
- Claim a refund with interest
What happens if the help is from a community of neighbors
In this case, the subsidy is distributed among the owners according to their share. Each neighbor must declare their proportional part if applicable.
And here's another trap: whoever is the owner at the time of collection can declare it, even if they didn't pay for the works.
Why the Treasury detects everything
The Tax Agency crosses data with administrations, communities, and public aid. It is very difficult for undeclared aid to go unnoticed.