Many town halls in Alicante province reduce your IBI (the annual Spanish property tax) by 15% to 50% for several years if you install solar panels. In towns such as Santa Pola, El Campello, Ibi or Cocentaina the 50% rebate lasts up to 5 years.
This guide explains how the rebate works, what each town offers and how to apply, including what you need to know if your property is a second home.
What is the IBI solar rebate?
IBI (Impuesto sobre Bienes Inmuebles) is the property tax every owner in Spain pays each year to the town hall. Spanish law allows town halls to reduce it by up to 50% for homes with solar energy systems. Each town sets its own percentage, duration and requirements in its tax bylaw (ordenanza fiscal).
Three things to know:
- It is not automatic. You have to apply to the town hall, often within a deadline (for example, 3 or 6 months after installation).
- There is usually a minimum system size, often linked to the built area of the property.
- It adds to other savings: the ICIO building-tax rebate and, for Spanish tax residents, an income tax (IRPF) deduction.
IBI rebate by town
|
Town |
IBI rebate |
Duration |
Main conditions |
|
Agost |
None |
— |
50% ICIO rebate |
|
30% |
4 years |
Max. €10,000/year. At least 2 kW per 100 m² of roof |
|
|
Albatera |
15% |
3 years |
Apply within 3 months of installation |
|
25% |
6 years |
From completion of the installation |
|
|
Alicante city (incl. Playa de San Juan) |
50% |
3 years |
Max. €300/year, and no more than 20% of the installation cost in total |
|
Altea |
25% |
3 years |
Total rebate capped at 50% of the installation cost |
|
50% |
5 years |
Minimum 3 kW self-consumption system |
|
|
Benidorm |
None |
— |
No solar rebate in the IBI bylaw |
|
Biar |
50% |
3 years |
— |
|
Bigastro |
25% |
3 years |
— |
|
Busot |
30% |
3 years |
— |
|
35% |
3 years |
Apply within 3 months of installation |
|
|
50%, then 25% |
3 + 2 years |
Max. €400/year (€200/year at 25%). At least 2 kW per 100 m² built |
|
|
Castalla |
None |
— |
95% ICIO rebate |
|
Catral |
50% |
3 years |
— |
|
50% |
5 years |
— |
|
|
Cox |
40% (PV) |
2 years, extendable to 6 |
— |
|
30% |
3 years |
Apply within 6 months of the permit. Not combinable with other rebates |
|
|
50%, then 25% |
3 + 2 years |
Depends on cadastral value |
|
|
50% |
5 years |
At least 5 kW per 100 m² built. Main residence only |
|
|
50% |
3 years |
At least 1 kW per 50 m² |
|
|
Elda |
10% to 50% |
4 years |
Depends on cadastral value |
|
Guardamar del Segura |
50% |
3 years |
— |
|
50% |
5 years |
— |
|
|
50% |
5 years |
Apply within 3 years of installation |
|
|
Monforte del Cid |
40% (PV) |
5 years |
— |
|
20% to 50% |
4 years |
Depends on cadastral value |
|
|
50% |
3 years |
While the system is working |
|
|
40% |
Ask us |
PV self-consumption only |
|
|
Orihuela (incl. Orihuela Costa) |
50% |
Ask us |
Must be applied for. Self-consumption only |
|
30% |
3 years |
Self-consumption only |
|
|
Pilar de la Horadada |
None |
— |
50% ICIO rebate |
|
San Miguel de Salinas |
15% |
3 years |
— |
|
40% |
4 years |
Minimum 1,000 Wp PV |
|
|
50% |
2 years |
Max. €250/year. Apply within 6 months |
|
|
Santa Pola (incl. Gran Alacant) |
50% |
5 years |
Apply within 6 months of installation |
|
Teulada-Moraira |
50% |
3 to 5 years |
Grid-connected PV |
|
Tibi |
50% |
4 years |
— |
|
50% |
3 years |
At least 5 kW per 100 m² built |
|
|
50% |
2 years, extendable to 4 |
Not combinable with other rebates |
|
|
None |
— |
90% ICIO rebate |
Compiled from municipal tax bylaws and town hall announcements. Town halls can change these every year, so we confirm the current conditions for your town before you install. Your town is not listed? Get in touch and we will check.
Does it apply to holiday homes?
It depends on the town. Some, like El Campello, limit the rebate to your main residence; most apply it to any property. Non-residents who own a home in Spain can generally apply, since IBI is paid by the owner regardless of residency. We check this for your specific town.
How to apply
- Have the system installed and legalised by an authorised installer (installation certificate and self-consumption registration).
- Gather the documents: invoice, installation certificate, your latest IBI receipt and, in some towns, an energy performance certificate.
- Submit the application to the town hall within its deadline.
- The rebate usually applies from the following year’s IBI bill.
At 2B Solar we handle all the paperwork for you, so you don’t have to deal with Spanish bureaucracy.
FAQ
Is the rebate applied automatically? No. You must apply for it, and missing the deadline can mean losing it.
My town gives no IBI rebate. Is there anything else? Check the ICIO building tax: towns such as Castalla, Villena and Pilar de la Horadada don’t reduce IBI but do give 50% to 95% off the ICIO.
Can I combine it with other IBI discounts? In some towns yes, up to a cap (90% in Santa Pola). In others, such as Crevillent or Villajoyosa, it cannot be combined.
Work out your total savings
We’ll prepare a free study showing your electricity savings, your town’s tax rebate and the payback period. Get your free solar assessment


