Skip to main content

Laws and taxes in European Union conceptThe new EU tax: What it Means for property owners

In 2027, properties in Spain that rely on gas or oil for heating will face an additional 10-15% EU tax on their bills. This measure is designed to encourage the shift toward electric power by making conventional heating systems less financially attractive. The goal is clear: reduce emissions and promote sustainable energy solutions across the continent.

Driving the switch to electric heating

This tax incentivises homeowners and developers to adopt more efficient systems, such as heat pumps and enhanced thermal insulation. These upgrades not only help reduce energy bills in the long term but also cut down on carbon emissions. Moreover, when electricity is sourced from solar panels, the energy essentially becomes “free” and independent of traditional utility companies. Any surplus energy can even be fed back into the mains system, earning credits to offset electricity usage.

Solar panels, sun, electricity in Spain

Solar panels generating electricity in Spain

Regulatory changes reinforcing the transition

Complementing the tax, Spain has prohibited new oil and gas central heating (CH) installations since 2023. New developments must now rely on electric heating systems, while existing oil and gas CH systems will need to be phased out by 2035. This regulatory shift aligns with broader EU targets for electricity use and CO₂ production, aiming for a CEE rating of E by 2030 and D by 2035.

Survey Spain’s expert advice

For years, Survey Spain has advised clients to consider transitioning to electric heating systems. Our Home Inspection and Building Survey Reports have consistently highlighted the long-term savings and environmental benefits of such upgrades. Now, with the impending EU tax and regulatory changes, the case for switching to electric heating has never been clearer.

Did you like this post? Please feel free to share it, acknowledging that it was sourced from Survey Spain.