The energy performance certificate in Spain is often viewed merely as a bureaucratic requirement when selling a property or applying for a mortgage. Few owners obtain it proactively to understand their home's energy efficiency rating. However, the importance of this certificate is growing rapidly as energy efficiency increasingly influences property values across Spain.
Across developed countries, there is a clear trend toward promoting energy efficiency, reducing energy consumption, and rewarding responsible property owners, for instance through better mortgage conditions. Spanish developers are aligning with this trend by designing new projects with energy efficiency ratings no lower than B, ideally A. Within a few years, properties rated G—the lowest efficiency class—will become uncompetitive due to the high costs and time required for renovations needed to meet minimum comfort and efficiency standards. Furthermore, EU-wide directives will make such upgrades mandatory, as detailed below.
What Is an Energy Performance Certificate and Why Is It Important?
In Spain, the Certificado de Eficiencia Energética is a document issued by a qualified technician that assesses how efficiently a building or dwelling uses energy to maintain comfortable living conditions. Currently, there are seven energy efficiency classes, ranging from A (highest) to G (lowest). Spain plans to expand this scale with additional classes soon.
The energy certificate is mandatory for:
- Advertising properties for sale or rent online, especially on major portals;
- Completing property sales, as notaries require the certificate to execute the deed;
- Renting properties, since the certificate must be attached to rental contracts;
- Obtaining green mortgages for homes with high energy efficiency ratings;
- Accessing grants and subsidies for renovation projects aimed at improving energy efficiency.
Current Energy Efficiency Landscape of Spanish Housing
Spain's housing energy efficiency is far from ideal. According to the Ministry for Ecological Transition and Demographic Challenge, approximately 52% of properties hold a class E rating, while classes F and G combined represent over 32%. This means more than 84% of Spain’s housing stock falls below acceptable energy efficiency standards.
Only about 20,000 properties—less than 0.4% of the 5.5 million certificates issued—achieve class A. This is largely due to Spain’s aging housing stock: 55% of buildings were constructed before 1980, and around 21% are over 50 years old, built without modern energy efficiency standards.
Energy consumption varies dramatically by class. The Institute for Energy Diversification and Saving reports that class A homes consume approximately 44.6 kWh/m² annually, whereas class G homes consume up to 382.6 kWh/m²—over eight times more. For an 80–90 m² flat, annual heating and cooling costs range from €300–€500 for class A to €2,000–€3,500 for class G, with higher costs in colder regions or under unfavorable tariffs.
Buildings account for roughly 30% of Spain’s electricity consumption and CO₂ emissions, split between residential (18%) and non-residential (12%) sectors. Improving energy efficiency is crucial to reducing this footprint, especially as Spain aligns with EU directives aimed at accelerating renovations of inefficient buildings.
The New EU Directive: Changes and Impact
In 2024, the EU adopted a new directive on the energy performance of buildings, requiring member states to update national legislation, standards, and certification systems. The directive aims to reduce the construction sector's carbon footprint throughout a building’s lifecycle, targeting climate neutrality for all European buildings by 2050.
Key milestones include:
- 2024: Adoption of the Energy Performance of Buildings Directive (EPBD).
- 2025: EU member states must submit national renovation plans; subsidies for fossil fuel boilers will be banned, allowing only hybrid systems.
- 2027: All public buildings must achieve at least class E.
- 2030: Public buildings must reach class D; residential buildings must reach class E.
- 2033: All residential buildings must achieve class D.
- 2040: Complete phase-out of fossil fuel heating systems.
- 2050: All buildings must be climate-neutral.
Spain will revise its certification system by May 29, 2026. The letter "A" will be reserved exclusively for zero-emission buildings, with new subcategories "A0" (zero emissions) and "A+" (energy consumption 20% below zero-emission limits) introduced. The classification will be based on the Zona de Balance Energético (ZBE), a normative model used to calculate consumption and emission limits for different building types and regions.
Cost of Improving Energy Efficiency in Spanish Homes
The EU mandates a 16% reduction in household energy consumption by 2030 and 20–22% by 2035, with 55% of this reduction coming from upgrading 43% of the building stock. Investments in energy efficiency yield significant savings: approximately €10,000 can reduce consumption by 30–45%, while €20,000 can cut it by over 60%. Upgrading from class E to C can save tenants around 35% on electricity bills.
Costs vary depending on:
- Dwelling size—larger homes require more materials and labor;
- Initial property condition—older buildings with poor insulation or outdated systems need more investment;
- Type of renovation—window replacement differs from installing solar panels or upgrading heating;
- Location—costs vary by city, e.g., Palma de Mallorca averages €11,479, Madrid around €7,224.
Typical annual savings range from €300 to €370, with a payback period of 15–20 years, potentially shorter with subsidies and rising energy prices.
Available financial support includes:
- EU-funded Renovation Plan (PRTR): Grants between €8,100 and €21,400 per home based on energy savings, requiring at least a 30% reduction in non-renewable energy consumption, verified by pre- and post-renovation certificates. Subsidy tiers are:
o 30–45% reduction: up to 40% subsidy, max €8,100 per home (€72/m²).
o 45–60% reduction: up to 65% subsidy, max €14,500 per home (€130/m²).
o 60%+ reduction: up to 80% subsidy, max €21,400 per home (€192/m²).
Additionally, up to €1,000 per home (or €12,000 per building) is available for asbestos removal, with all work to be completed by June 30, 2026.
- Tax deductions: Personal income tax deductions up to 60% for whole-building improvements achieving 30% energy savings or raising efficiency to class A or B. Smaller-scale works may qualify for 20–40% deductions. Energy certificates and invoices must be retained.
- Local incentives: Some municipalities offer property tax (IBI) discounts.
- Individual home efficiency program: Covers main residences with a 40% subsidy on project costs, capped at €3,000 per home, requiring a minimum project cost of €1,000.
Additional regional schemes may include low-interest loans or extra aid for rural residential buildings.
Impact of Energy Efficiency on Property Values in Spain
A May 2025 Bank of Spain study analyzed 1.2 million property transactions from 2014 to 2023, combining cadastral, energy certificate, and land registry data. It found that higher energy efficiency ratings correlate with higher property prices. Homes rated A or B are on average 5–12% more expensive than those rated D or E, with differences between A and G reaching 20%. Energy-efficient homes (A to C) also command 4–8% higher rental prices.
Since 2021, the "green premium"—the extra amount buyers or tenants are willing to pay for efficient homes—has increased by about 30%. This effect is strongest in new developments and major cities like Madrid, Barcelona, and Valencia. The share of transactions involving F and G rated homes has declined since 2022, reflecting growing market sensitivity to energy efficiency.
Expert Forecasts: The Spanish Property Market Under the New EU Directive
Based on EU regulations and experiences from countries like Germany and the Netherlands, analysts predict that by 2030, Spanish homes rated A or B could appreciate by 15–25%, while those rated F or G may lose up to 40% of their value due to reduced demand, higher running costs, and mandatory costly renovations to reach at least class E.
Data from Tinsa, Spain’s largest independent valuation company, suggests each step up the energy efficiency scale increases property value by 1–5%. The price gap is expected to widen further by 2030 and 2040, factoring in mandatory upgrades, rising energy costs, loss of subsidies, and restricted access to green mortgages.
Some experts anticipate that from 2030, mortgages may no longer be available for F and G rated homes in Spain. Although no legal ban currently exists on financing low-efficiency properties, banks like Banco Santander, CaixaBank, and Banco Sabadell already offer preferential green mortgages for high-efficiency homes.
Experience from other European markets shows that F and G rated properties are typically discounted by 20–30%. The forecast for Spain by 2030 is:
- Classes A and B: +15–25% in price, strong demand.
- Classes C and D: up to +5% in price, stable demand.
- Class E: –5–10% in price, weak demand.
- Classes F and G: –20–40% in price, minimal demand.
Contrary to rumors, there is no current EU or Spanish law banning the sale or rental of homes rated E, F, or G. The European Commission in Spain has clarified that the directive sets renovation targets but does not impose outright bans or individual owner renovation obligations. Spain has yet to legislate specific measures that might restrict sales or rentals of low-efficiency homes.
How to Verify Energy Efficiency When Buying Property in Spain
Sellers in Spain must provide an energy performance certificate upon request. The certificate’s rating (A to G) indicates the property’s energy efficiency class. However, buyers should take additional steps to verify the certificate and assess the property’s condition:
- Verify certificate authenticity through regional databases, such as the Valencian Community’s official registry, using the certificate’s registration code, cadastral reference, or address. Certificates are valid for 10 years for classes A–F and 5 years for class G.
- Distinguish between individual certificates (for specific dwellings) and collective certificates (for entire buildings). Individual certificates are required for purchase transactions.
- Ensure the advertised energy rating matches the certificate.
- Review electricity bills from the past year to assess actual consumption.
- During property visits, inspect windows (glazing quality), walls and ceilings (for condensation or mold), heating and air conditioning systems, appliances, and orientation.
- For flats in multi-unit buildings, inquire about any energy efficiency upgrades to the building, as future costs may be imposed on residents.