Extension of IRPF Deductions 2025: Boost for Sustainability and Electric Mobility

The commitment to sustainability and ecological transition remains firm on the Spanish tax agenda. One of the most relevant measures for Personal Income Tax (IRPF) taxpayers for the 2025 financial year is the extension of deductions related to investment in energy efficiency and clean vehicles, initially scheduled to end before this period.

I. Deduction for Energy Efficiency Improvement Works on Homes

The extension, until December 31, 2025, of the deductions for works carried out on the main residence or rented homes, aimed at improving energy efficiency, is confirmed.

The objective is to incentivize the rehabilitation of properties to reduce non-renewable primary energy consumption and the demand for heating and cooling. There are three deduction brackets, depending on the scope of the improvement achieved:

Key Aspect: It is essential that the improvement is justified by the Energy Efficiency Certificate issued by a competent technician, both before and after the completion of the works. The extension offers an additional window of time to plan and execute reform projects with tax benefits.

II. Deduction for the Acquisition of Plug-in Electric Vehicles (VEP) and Charging Points

The deduction for the purchase of electric vehicles and the installation of charging points in the home is also extended, until December 31, 2025. This measure seeks to accelerate the penetration of electric vehicles in the Spanish vehicle fleet.

1. Deduction for VEP Acquisition:

   • Percentage: 15% of the acquisition value.

   • Maximum deduction base: € 20,000 (resulting in a tax saving of up to € 3,000).

   • Requirement: The vehicle must be new, electric, and identified as VEP, not used for economic activities.

2. Deduction for Charging Point Installation:

   • Percentage: 15% of the cost.

   • Maximum deduction base: € 4,000$ (tax saving of up to € 600).

   • Requirement: The installation must be carried out in the main residence or a second residence and not be used for economic activities.

The extension of these deductions underscores the role of taxation in promoting individual investment in a more sustainable future.

By C.Fabri