Will Homes With a Poor Energy Rating Become Unsellable in Spain? Facts and Myths

Lately, posts have been appearing more and more often on social media and in the news about the new European rules on energy ratings:

• "From 2030 you won't be allowed to sell a property with energy rating F or G."
• "Old Spanish homes are becoming unsellable."
• "You'll first have to invest thousands of euros before you're allowed to sell your home."

These are claims that cause a great deal of anxiety, especially among people who already own a property in Spain or are considering buying one. But are they actually true?

The short answer: no.

At present, there is no Spanish law stating that a property with energy rating F or G may no longer be sold from 2030 onwards. Nor does the European directive impose such a sales ban on private homes. That doesn't mean nothing is changing. In fact, a great deal is changing, just not in the way it is often portrayed.

What is an energy rating, exactly?

When selling or renting out a property in Spain, a Certificado de Eficiencia Energética (CEE) has been mandatory for years. The certificate indicates how energy-efficient a home is, comparable to the ratings used across much of Europe. A property receives a rating from A (very efficient) to G (least efficient).

That certificate remains compulsory when a home is sold or rented out. On top of this, the European rules place greater emphasis on displaying the rating in advertisements and throughout the sales process.

Where does the confusion come from?

The European Union wants the entire housing stock to be climate-neutral by 2050 at the latest. That sounds ambitious, and it is. But the European directive leaves member states considerable freedom to decide for themselves how they wish to reach that goal. It does not impose a blanket ban on selling or renting out homes with a low energy rating.

Many posts online mix up various European targets and national plans. This quickly creates the impression that millions of homes are about to be "banned".

The Spanish reality

Anyone who regularly drives around Spain immediately sees why this topic is so nuanced. A large share of existing homes was built at a time when insulation barely came into it. On the Costa Blanca and Costa Cálida especially, many apartments and villas hold an energy rating of E, F or G.

If Spain were to decide tomorrow that these homes could no longer be sold or rented out, it would have an enormous impact on the property market. That is precisely why many experts expect Spain to roll out the energy transition step by step, with transitional arrangements, incentive schemes and a gradual tightening of the requirements, rather than a sudden ban.

Does this mean you don't need to do anything?

That would be an oversimplification too. The trend is clear. New homes are being built to ever-higher energy standards, and buyers increasingly pay attention to things such as:

• insulation;
• solar panels;
• heat pumps;
• efficient air conditioning;
• double glazing;
• lower energy bills.

An energy-efficient home is therefore likely to become more appealing on the market. But that doesn't mean an older property automatically becomes unsellable. Location, maintenance, views, outdoor space and surroundings remain at least as important to many buyers.

My advice

Don't be swayed by sensational headlines. Stricter requirements will undoubtedly come. That fits with Europe's climate targets. But at this moment it is simply incorrect to claim that homes with a low energy rating may no longer be sold or rented out in Spain from 2030.

If you're buying a property, you would nonetheless be wise to look at its energy performance. Not out of fear of a sales ban, but because an energy-efficient home is often more comfortable, has lower energy costs and may in time prove more appealing to future buyers.

The reality is often less dramatic than the headline

Online, it sometimes looks as though the Spanish property market is about to be turned completely upside down over the coming years. The reality is usually far more nuanced.

Spain changes. It always has. Rules change, taxes change, and sustainability too is playing an ever-greater role. But one thing has stayed the same over the past few decades: people don't choose Spain because of an energy rating. They choose it for the climate, the quality of life and the feeling they experience here. And that is exactly why it's so important to keep telling facts from myths.

Are you unsure about the energy rating of a property you have your eye on, or about what's sensible when it comes to selling? I'd be glad to take a look with you and give you honest advice.