Does an energy rating affect property value in Spain?

How the A-to-G EPC label moves Spanish sale prices, backed by Banco de Espana and IESE-Tinsa research.

Yes, an energy rating measurably affects property value in Spain. A Banco de Espana study of over one million residential sales between 2015 and 2022 found that the most energy-efficient homes sell for up to 9.7 per cent more than the least efficient ones, with the premium growing over time. An IESE Business School and Tinsa study of 240,000 homes put the average gain at 1.3 per cent for each one-letter improvement on the A-to-G scale. The EU’s recast Energy Performance of Buildings Directive, in force since 28 May 2024, will widen the gap by pressuring low-rated homes to retrofit. For a non-resident owner planning to sell, the EPC label is no longer just a regulatory formality.

What evidence links energy ratings to Spanish property prices?

The strongest Spanish-specific evidence comes from two 2025 studies that used real transaction data rather than asking prices or surveys.

The Banco de Espana’s Occasional Paper 2508, published in May 2025, analysed more than one million residential property sales across Spain from 2015 to 2022. Using a hedonic regression model that isolates the energy-efficiency variable from location, build quality and other attributes, the study concluded that higher energy efficiency raises a property’s price by up to 9.7 per cent compared with the least efficient homes. The effect has intensified in recent years, especially for homes with the highest energy ratings.

A second study by IESE Business School, Tinsa by Accumin and Accumin Intelligence examined over 240,000 homes and found that each one-letter step up the EPC scale increases value by an average of 1.3 per cent. Moving from C to B added 3.3 per cent, from B to A added 2.1 per cent, and even a modest E-to-D improvement added 1.2 per cent. Cristina Arias, head of research at Tinsa by Accumin, noted that the analysis was the first to isolate energy efficiency from other attributes like modernity and insulation quality.

Rating change	Average price gain	Source
G to A (least to most efficient)	up to 9.7 per cent	Banco de Espana, Occasional Paper 2508 (2025)
C to B	3.3 per cent	IESE and Tinsa by Accumin study (2025)
B to A	2.1 per cent	IESE and Tinsa by Accumin study (2025)
E to D	1.2 per cent	IESE and Tinsa by Accumin study (2025)
Each one-letter step (national average)	1.3 per cent	IESE and Tinsa by Accumin study (2025)

Does the green premium vary by region and property type?

The energy-rating premium is not uniform across Spain. It is driven by how much a buyer saves on heating and cooling, so colder regions show a larger effect.

The IESE and Tinsa study found that in chillier autonomous communities such as Cantabria and Asturias, where winter heating costs are a significant household expense, each one-letter improvement in energy rating raises property value by as much as 4.8 per cent. In warmer regions including Andalucia, Madrid and the Canary Islands, the premium is more modest, generally between 1.0 and 1.1 per cent per grade. On the Costa del Sol, where cooling rather than heating dominates energy bills, the premium sits at the lower end of that range.

Property type also matters. Detached single-family homes (viviendas unifamiliares) see a 1.5 per cent gain per rating grade, compared with 1.3 per cent for flats in a block. Homes built after 2006, when Spain’s Technical Building Code (Codigo Tecnico de la Edificacion) introduced mandatory energy standards, enjoy the largest premium at up to 1.7 per cent per grade. The IDAE reports that 60 per cent of Spain’s housing stock predates any energy regulation, meaning most existing homes start from a low EPC baseline with substantial room for improvement.

Factor	Premium per rating grade	Source
Cold regions (Cantabria, Asturias)	up to 4.8 per cent	IESE and Tinsa by Accumin (2025)
Warm regions (Andalucia, Madrid, Canaries)	1.0 to 1.1 per cent	IESE and Tinsa by Accumin (2025)
Detached houses	1.5 per cent	IESE and Tinsa by Accumin (2025)
Flats in a block	1.3 per cent	IESE and Tinsa by Accumin (2025)
Post-2006 builds	up to 1.7 per cent	IESE and Tinsa by Accumin (2025)

How will EPBD 2024/1275 change the value equation?

The recast Energy Performance of Buildings Directive (Directive (EU) 2024/1275) entered into force on 28 May 2024 and must be transposed into Spanish national law by 29 May 2026. It introduces obligations that will reshape how buyers and lenders view EPC ratings.

For the residential building stock, each EU country must adopt its own national trajectory to reduce the average primary energy use of residential buildings by 16 per cent by 2030 and 20 to 22 per cent by 2035. At least 55 per cent of that reduction must come from renovating the worst-performing buildings. The directive allows member states to choose which buildings to target and to exempt categories including holiday homes and historic buildings, so the precise impact on a specific Costa del Sol property depends on Spain’s transposition.

For non-residential buildings, the EPBD introduces minimum energy performance standards that will trigger renovation of the 16 per cent worst-performing buildings by 2030 and the 26 per cent worst by 2033. The directive also strengthens EPCs with a common European template and makes them digital, which will make ratings more visible to buyers and mortgage lenders. The European Commission reports that 85 per cent of EU buildings were built before 2000 and 75 per cent have poor energy performance, with an annual renovation rate of just 1 per cent.

The practical effect for sellers is twofold. First, low-rated homes face growing obsolescence risk as the market prices in future retrofit obligations. Second, high-rated homes become more attractive not only to buyers but to lenders, since banks can use EPC data to offer better mortgage terms on efficient properties. For a deeper look at the retrofit obligations themselves, see our guide to EPBD retrofit rules for Spanish property.

Is upgrading the EPC rating before selling worth the cost?

The short answer is: often yes, especially if the property currently sits at E, F or G and the upgrade crosses at least one letter boundary.

Consider a worked example. A EUR 400,000 apartment rated E on the Costa del Sol. The IESE and Tinsa data suggests a one-letter improvement (E to D) adds roughly 1.2 per cent, or about EUR 4,800. Common upgrades that can achieve a one-letter gain include improving loft or wall insulation, replacing an old boiler with a modern aerothermal heat pump, or installing double-glazed windows. Many of these interventions qualify for regional renovation subsidies under the energy renovation subsidy programmes, reducing the net outlay.

The cost-benefit calculation is most favourable when the owner targets the cheapest available rating gain. A pre-sale EPC assessment from a qualified tecnico competente, which costs roughly EUR 90 to EUR 135 for a flat according to market data, can identify which intervention delivers the highest rating return per euro spent. The energy performance certificate process is mandatory for sale anyway, so commissioning it early and acting on its recommendations is a low-cost way to capture the green premium.

The marketability dimension also matters. Evidence from the broader European literature, summarised in a 2025 scoping review published in Energy and Buildings, found that homes with band A ratings sell for approximately 9.9 per cent more than band D homes across European markets. More efficient homes also tend to sell faster, as buyers increasingly factor running costs into their purchase decisions.

What does this mean for a non-resident owner?

For a non-resident owner of Costa del Sol property, the energy rating sits at the intersection of three trends: rising buyer awareness, tightening EU regulation and available renovation subsidies. The Banco de Espana data shows the green premium is real and growing. The EPBD makes low ratings a future liability. The subsidies lower the cost of upgrading.

The practical sequence is straightforward. First, obtain or renew your EPC to establish the current rating. Second, commission a technician’s assessment of which upgrade would lift the rating by at least one letter at the lowest cost. Third, check whether the planned works qualify for energy renovation subsidies. Fourth, re-certify after the works and market the improved rating in the listing. Even in a warm region where the per-grade premium is modest, the combination of a higher sale price, faster sale and protection against future EPBD-driven obsolescence usually justifies the investment.

This guide is general information, not legal or tax advice. Rules change and individual circumstances differ. Verify current requirements with an independent lawyer (abogado) or tax advisor (gestor/asesor fiscal) before acting.