The energy performance certificate in Spain is usually treated as just another item on the paperwork checklist needed when selling a property or, in some cases, when applying for a mortgage. Owners rarely order a certificate simply for their own information or out of curiosity – to see what energy efficiency class their home has been given. However, you should not underestimate market trends and the importance of the energy certificate: the energy efficiency of housing in Spain is becoming an increasingly important factor in the final value of a property.

The general trend in developed countries is to support energy efficiency, to try to minimise energy consumption and to reward responsible owners (for example, with better mortgage conditions). Spanish developers are also following this trend: new projects are designed so that the energy efficiency rating of homes is no lower than B and ideally A. In just a few years, properties with a G rating – the lowest – will become completely uncompetitive: the cost and time required for renovation and major upgrades to reach at least the minimum comfort and efficiency standards will make the purchase of such properties unprofitable. Moreover, upgrades and improving energy efficiency will become mandatory under the EU-wide directive on the energy performance of buildings, which we will discuss in more detail below.

What is an energy performance certificate and why is it important?

The energy performance certificate in Spain (Certificado de Eficiencia Energética) is a document signed by a qualified technician that shows how efficiently a whole building or an individual dwelling uses energy to maintain comfortable living conditions. At present there are seven energy efficiency classes, labelled from A (highest) to G (lowest). In the near future, the scale is expected to be expanded and additional classes introduced in Spain.

The energy certificate is a mandatory part of the documentation for:

• posting an advert on the internet to sell or rent a home (or commercial premises) – especially on the largest portals, idealista and fotocasa;
• selling a property (without the certificate, the notary will not execute the deed of sale);
• renting out a property (short- or long-term), since the current law requires the certificate to be attached to the rental contract;
• obtaining a green mortgage for a home with a high energy efficiency rating;
• obtaining grants and subsidies for renovation work aimed at upgrading the property’s energy efficiency class.

Energy efficiency of housing in Spain: the current situation

The current situation regarding the energy efficiency of housing in Spain is not critical, but it is far from ideal. According to an official report from the Ministry for Ecological Transition and Demographic Challenge, class E accounts for the largest share of certificates in the active registers – around 52%. Classes F+G represent more than 32%. Together, this makes over 84% of the housing stock. In other words, more than four fifths of the country’s properties do not meet energy efficiency criteria.

In the same registers there are only about 20,000 class A certificates – less than 0.4% of the total database (5.5 million certificates). The explanation is simple: in Spain a huge share of housing belongs to the old stock, which was built at a time when energy efficiency was not really considered and when construction quality, materials, insulation and installed equipment were subject to very low standards. Around 55% of all buildings in the country were constructed before 1980, which means they are now over 45 years old. A further 21% or so are more than 50 years old. Almost all of these buildings are energy inefficient.

Spain’s Institute for Energy Diversification and Saving notes that while household energy consumption for class A is around 44.6 kWh/m² per year, for class E it rises to 303.7 kWh/m² per year, for class F to 382.6 kWh/m² per year, and for class G to 382.6 kWh/m² per year. This means that a flat with a G energy efficiency rating may consume up to 8.5 times more energy per square metre than a flat with an A rating.

If we translate this into money, we get the following: the approximate annual cost of heating/cooling a flat of 80–90 m² is 300–500 €/year for class A and 2,000–3,500 €/year for class G (and even more in colder areas and/or under unfavourable tariffs).

If you do not have an energy certificate and have never ordered one, you can make a preliminary calculation on the website of the General Council of Technical Architecture of Spain using a special calculator.

Overall, buildings account for around 30% of Spain’s electricity consumption, of which 18% corresponds to residential buildings and 12% to non-residential ones (office and commercial buildings). A similar proportion – about 30% – is the share of the residential and non-residential stock in CO₂ emissions. Raising energy efficiency classes is expected to make a noticeable positive contribution to the energy balance. Spain is currently aligning its certification system with the EU directive whose aim is to accelerate the renovation of low-efficiency buildings. In the short term, significant pressure is expected on properties with ratings E, F and G.

The new EU directive: what will change and who will be affected?

In 2024, the EU adopted a new directive on the energy performance of buildings. Member States are now bringing their national legislation, standards and certification principles, including their national databases, into line with it. The main objective of the reform is to reduce the carbon footprint of the construction sector over the entire life cycle of a building – from construction to demolition. Full renovation of the EU building stock is subject to deadlines. By 2050, all European buildings without exception must be climate-neutral.

The main implementation stages of the directive are:

• 2024 – adoption of the Directive on the Energy Performance of Buildings (EPBD – Directiva sobre Rendimiento Energético de los Edificios).
• 2025 – by the end of the year, EU Member States must submit their national renovation plans. It will also become prohibited to subsidise the purchase/installation of boilers that run on fossil fuels (gas, coal, diesel); only hybrid systems will be allowed.
• 2027 – from 1 January 2027 all public buildings must achieve at least class E.
• 2030 – from 1 January 2030 all public buildings must have class D and all residential buildings must have class E.
• 2033 – from 1 January 2033 all residential buildings must have class D.
• 2040 – complete phase-out of heating systems based on fossil fuels.
• 2050 – all existing buildings, both residential and non-residential, must be climate-neutral.

In Spain, the classification used when issuing energy certificates will be modified. By 29 May 2026:

• The letter “A” will be reserved exclusively for zero-emission buildings. Until now this category included buildings with almost zero or very low energy consumption and emissions below 10 kg CO₂/m² per year.
• Two additional categories may be created: “A0” (zero emissions) and “A+” (energy consumption 20% below the limit set for ZBE).

ZBE stands for “Zona de Balance Energético” – the reference energy balance zone used to calculate limit values of consumption and emissions for the different certification classes. Each region and each type of building (residential, office, etc.) has its own “ZBE zone” – not a geographical area, but a normative model against which a specific building is compared during certification.

How much does it cost to improve the energy efficiency of housing in Spain?

The EU has required all Member States to reduce household energy consumption by 16% by 2030 and by 20–22% by 2035. 55% of this reduction must come from upgrading 43% of the residential and non-residential building stock.

The more investment is made to achieve these targets, the greater the energy savings will be, which in turn will reduce tenants’ bills and increase property values. With an investment of around €10,000, energy consumption can be cut by 30–45%; with an investment of around €20,000, by more than 60%. Moving from a home with an E rating to one with a C rating can save tenants around 35% on their electricity bills.

• The cost of upgrading a property’s energy efficiency class depends on several factors:
• The size of the dwelling: the larger the area, the more materials and labour will be needed.
• The initial condition of the property: if there are serious insulation problems or very old heating/air-conditioning systems, investment will have to be higher.
• The type of renovation: replacing windows is not the same as installing solar panels or overhauling the heating system.
• The location: prices vary from city to city. For example, in Palma de Mallorca the average cost is €11,479, while in Madrid it is around €7,224.

With average savings of €300 to €370 a year, the payback period for investment can be 15–20 years. However, factors such as subsidies, energy prices and the potential to increase savings may shorten this period.

There are various aid and subsidy schemes that can help reduce costs:

• Renovation plan for residential buildings under the Plan de Recuperación, Transformación y Resiliencia (PRTR): financed by the EU’s Next Generation fund, it provides between €8,100 and €21,400 per home, depending on the energy savings achieved. The minimum requirement is a 30% reduction in the consumption of non-renewable energy, proven by energy certificates issued before and after the renovation work. The actual amount of the subsidy is calculated using two criteria, applying the lower of the two: either a percentage of actual costs, or a ceiling per square metre or per dwelling:

o  A reduction of 30–45% entitles you to a subsidy of up to 40%, with a ceiling of €8,100 per home (or €72/m²).

o  A reduction of 45–60% entitles you to a subsidy of up to 65%, with a ceiling of €14,500 per home (or €130/m²).

o  A reduction of 60% or more entitles you to a subsidy of up to 80%, with a ceiling of €21,400 per home (or €192/m²).

In addition, up to €1,000 per home (or up to €12,000 per building) can be granted for asbestos removal works. Under current regulations, all work must be completed by 30 June 2026.

• Tax deductions: you can obtain a personal income tax (IRPF) deduction of up to 60% if you reduce the energy consumption of an entire building or complex by 30% or raise its energy efficiency class to A or B. For smaller-scale works in a single dwelling (not the whole building) and moderate improvements, tax deductions of 20% or 40% may apply. It is essential to obtain energy certificates before and after the works and to keep all invoices.
• Local incentives: some municipalities offer discounts on the annual property tax (IBI) as an extra incentive.
• Programme to improve energy efficiency in individual homes: this covers only works in a main residence, which must be the owner’s or tenant’s permanent home, as proven by registration (empadronamiento). The subsidy is 40% of the project cost, up to a maximum of €3,000 per home. The minimum cost of each project must be at least €1,000 per home.

In addition to these subsidies, some regions have their own specific schemes, such as low-interest loans or extra aid for residential buildings in rural areas.

How the energy efficiency class of housing in Spain affects its value

In May 2025, the Bank of Spain published an extensive study on how energy efficiency affects housing prices in Spain. The analysis used 1.2 million purchase and long-term rental transactions between 2014 and 2023. Data sources included cadastral records, the energy certificate database and the Land Registry.

The main conclusion is that a higher energy efficiency class increases a property’s price. A home with an A or B rating is on average 5–12% more expensive than a comparable home with a D or E rating. The difference between A and G can reach 20%. In addition, energy-efficient homes (classes A to C) are rented at prices 4–8% higher than less efficient ones.

Since 2021, the “green premium” (the extra price buyers or tenants are willing to pay for energy-efficient homes) has increased by around 30%. The impact of energy efficiency on prices is particularly strong in new builds and in the largest cities – Madrid, Barcelona and Valencia.

According to the Bank of Spain, buyers have become sensitive to a property’s energy class. After 2022, the energy certificate began to influence the market’s perception in a very real way: the share of transactions involving homes with F–G ratings started to decline.

Experts’ forecasts: what awaits the Spanish property market under the new EU directive?

According to analysts’ forecasts based on current EU rules and the experience of markets with similar reforms (Germany, the Netherlands), by 2030 homes in classes A–B in Spain could gain 15–25% in value, while homes in classes F–G could lose up to 40% of their value due to falling liquidity, rising running costs and the need for expensive works just to reach class E. These forecasts are based on the Bank of Spain’s report mentioned above and on data from Tinsa, the largest independent property valuation company, which show that moving one step up the energy efficiency scale increases the price by 1–5%.

In light of the new European directive, the price gap is expected to widen further by 2030 and then by 2040. Everything has to be taken into account: the cost of mandatory works to reach class E and later class D, operating costs against a backdrop of rising electricity prices, loss of access to certain subsidies and incentives, the inability to obtain green mortgages, and so on.

Some market experts predict that from 2030 it may become impossible to obtain a mortgage for homes with F and G ratings in Spain. At present there is no ban on financing the purchase of low-efficiency housing. However, Spanish banks are already differentiating conditions based on a property’s energy class. For example, Banco Santander, CaixaBank and Banco Sabadell offer “green” mortgages on preferential terms for homes with high energy efficiency ratings.

The experience of neighbouring countries where similar internal rules have been in force for several years (such as Germany and the Netherlands) shows that properties with F and G ratings are discounted by 20–30%. Thus, the forecast for Spain by 2030 can be summarised as follows:

• Classes A and B: +15–25% in price, high 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, almost no demand.

Despite rumours circulating online that the sale of homes with F and G ratings will be banned from 2033, no such legal restrictions exist at present. Moreover, the European Commission’s representation in Spain has issued a statement saying, among other things: “There is a rumour that the EU will ban the sale or rental of homes with E, F and G ratings from 2030 or 2033. This information is incorrect. The directive does not provide for any ban on selling or renting homes. Nor does it impose renovation obligations on individual owners.” In reality, the new directive sets targets: by 2030 at least class E, by 2033 class D for residential buildings, and requires countries to draw up renovation plans. But each country will develop and implement its own specific measures (which may eventually include restricting the sale or rental of the least efficient homes). Spain has not yet written these details into law.

How to check energy efficiency when buying a property in Spain

In Spain, the seller is obliged to have an energy performance certificate (Certificado de Eficiencia Energética) and to show it to the buyer on request. The letter shown on the certificate (from A to G) indicates the property’s energy efficiency class. It might seem that this information is enough once you know the class – but we recommend taking a few extra steps to verify the certificate and check the actual condition of the flat or house. Step by step:

• Verify the authenticity of the certificate. In the Valencian Community this can be done on the IVACE website. You can search by the registration code shown on every certificate, by cadastral reference or by address. Certificates are valid for 10 years for classes A–F and 5 years for class G.
• Certificates can be of two types: individual (relating to a specific dwelling) and collective (for the whole building). An individual certificate is required for a purchase transaction.
• The energy rating stated in the sale advert must match the rating shown on the certificate.
• It is also useful to check electricity bills for the past year to see the actual consumption figures.
• When viewing a flat or house, pay attention to the windows (type and quality of glazing), walls and ceilings (signs of condensation and mould), type of heating and air conditioning, installed electrical appliances and the property’s orientation.
• If it is a block of flats, try to find out whether any work has been carried out to improve the building’s overall energy efficiency. If not, you should expect additional costs to be imposed on residents in the future.

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