Energy Performance Certificate in 2026: What Is Changing in Mallorca and Spain

Energy efficiency is no longer a mere formality, as Europe is taking the future seriously and examining how our carbon footprint affects the environment. An energy certificate now shows how climate conscious and cost efficient your home truly is.

In 2026, new certification regulations come into force in Spain, and in Mallorca they have their own specific features. Why is the situation particularly acute on an island with its old stone fincas? How is this affecting the property market, and what should sellers and buyers be doing?

At YES! Mallorca Property, we closely monitor legislative changes and market trends, take part in the local community of estate agents, and work with energy auditors. We do not simply report the news. We see how these changes operate in practice, and today we will explain what is really happening with energy efficiency in Mallorca.

Content:

1. Why your energy performance certificate is no longer just a “piece of paper for compliance”

2. Energy efficiency reforms in Europe

3. What is new in Directive 2024/1275

4. What Spain is required to do and by when

5. What will change with certificates from 1 April 2026

6. How changes in energy performance ratings will affect property market participants

7. What to do right now

8. Expert opinion from YES! Mallorca Property

9. Frequently asked questions

10. Conclusion

Why your energy performance certificate is no longer just a “piece of paper for compliance”

Previously, the Energy Performance Certificate was a document required to complete a property transaction, and most people treated it as a mandatory formality. For years, the certificate sat quietly in a folder with other documents. It was obtained at the last minute before signing the contract, glanced at briefly, and then filed away. Owners of stone houses in Sóller or apartments in Santa Catalina would calmly ignore a proud F in the efficiency rating, consoling themselves with the thought that there were orange trees in the courtyard and a view of the Serra de Tramuntana.

By 2026, the situation has changed significantly. Those letters A, B, C, D, E, and so on have become the language of money, and each letter now has the power either to add zeros to the value of your villa or to erase them.

To understand the situation, we should first clarify what this document is and why it is required.

What is the Spanish Energy Performance Certificate

The Energy Performance Certificate, or Certificado de Eficiencia Energética, commonly referred to as CEE, is the coloured label that Spanish engineers carry on their tablets. In Spain, it is an official document that shows two key parameters:

• how much energy your home consumes

• how much carbon dioxide it emits into the atmosphere

The letter scale from A, which indicates high energy efficiency, to G, which indicates very low energy efficiency, helps assess how environmentally responsible a home is and, ultimately, how economical it is for its owner.

If your certificate displays an A, your villa consumes very few resources. If you have a G rating, your home is highly energy intensive, and your electricity bills may exceed your mortgage payments.

The document is issued by a certified technical engineer, registered in regional records, and remains valid for ten years.

Energy efficiency reforms in Europe

A brief look at the background helps explain why everything becomes more serious in 2026. Energy efficiency reforms have been under way for twenty years. The first Directive 2002/91/EC established a common system for assessing the energy performance of buildings. Directive 2010/31/EU then strengthened this system and laid the foundation for modern energy performance certificates. In 2018, Directive 2018/844 updated the requirements to promote building renovation and modernisation. The real turning point came on 24 April 2024, when the European Parliament adopted Directive EU 2024/1275, announcing not merely an update but a complete revision of the approach.

The development of energy efficiency legislation in the European Union:

• Directive 2002/91/EC, common system for energy performance assessment

• Directive 2010/31/EU, foundation for modern certificates

• Directive 2018/844, promotion of renovation and modernisation

• Directive 2023/1791, Fit for 55, requiring a 55 per cent reduction in greenhouse gas emissions by 2030 and climate neutrality by 2050

• Directive EU 2024/1275, new approach to energy performance assessment

What is new in Directive 2024/1275

A new A+ category has been introduced for ultra efficient zero emission buildings. A new class of buildings is emerging that not only save energy but actually produce more energy than they consume.

Such buildings already exist in Mallorca. For example, the renovation project of the GESA building in Palma has been designed to generate more energy than it uses. For now, however, these are isolated examples rather than common practice.

Two new indicators have been added:

GWP, Global Warming Potential, an assessment of a building’s carbon footprint over its entire life cycle. In practical terms, this means that not only the operation of the home will be assessed, but also the full life cycle of the materials used in its construction. The calculation will take into account how much carbon dioxide was generated when quarrying stone for the walls, producing cement, or transporting marble from Italy. In this context, older homes may gain an advantage. A villa built from local stone could prove more environmentally responsible than a new development with imported marble and high specification windows, gaining additional points in the GWP calculation.

SRI, Smart Readiness Indicator, an assessment of a building’s readiness to integrate with smart technologies. Can the home connect to intelligent systems? Is there wiring for charging an electric vehicle? Can the thermostat automatically adjust the temperature according to the weather outside? What matters is how effectively the home can be integrated into automated management systems that reduce energy consumption and control operating costs through efficient algorithms.

New buildings and the Zero Emission Buildings standard

From 2028, all new public buildings must meet the Zero Emission Buildings standard. From 1 January 2030, this requirement will apply to all new constructions without exception. The ZEB standard means no on site carbon dioxide emissions from fossil fuels and extremely low operating costs. This is already influencing the Mallorca property market. New villas in the premium segment are being designed according to these standards today in order to avoid liquidity issues in the future.

Renovation of the existing building stock, Minimum Energy Performance Standards

The Directive introduces gradual requirements for renovating the least efficient properties. For non residential buildings such as offices and hotels, the plan is to renovate at least 16 per cent of the worst performing buildings by 2030 and 26 per cent by 2033. For residential buildings, each country will develop its own trajectory for reducing energy consumption, targeting a reduction of 16 per cent by 2030 and 22 per cent by 2035.

Numbers that will make you think

Why housing in particular

Directive 2024/1275 contains a figure that has unsettled many property owners. Residential properties account for up to 40 per cent of energy consumption in Europe. Households are responsible for 36 per cent of all carbon emissions. Sitting in our living rooms with air conditioning and heating systems, we generate more carbon dioxide than half of Europe’s factories.

Europe has decided that this must change. The main tool will be the certification system, which will record actual energy performance and influence the cost of owning property.

At this point, many readers understandably ask themselves what this has to do with their home in Alcúdia or their apartment in Palma.

The answer lies in the age of Spain’s housing stock. Almost half of residential buildings in Spain were built before 1980. This is official data. These homes were constructed at a time when insulation was rarely considered, and energy efficiency was not a priority. Builders relied on thick stone walls. They worked well in summer, but in winter such houses could be uncomfortably cold.

Let us look at the statistics to understand the scale of the issue.

Spain wide statistics

A study based on the first 130,000 energy performance certificates issued for existing buildings revealed striking results.

• More than half of residential buildings, 53.6 per cent, received class E.

• Private houses consume an average of 248 kilowatt hours per square metre per year.

• Apartments in multi family buildings consume 183 kilowatt hours per square metre per year.

• Until 2008, residential buildings were constructed with almost no insulation in the building envelope.

• After 2006, the introduction of insulation reduced carbon dioxide emissions by up to 82 per cent.

The financial impact is also significant. The increase in construction costs when implementing modern standards is 11 per cent for multi family buildings and 17 per cent for private homes. However, savings on operating costs offset these expenses within a few years.

The situation in Mallorca

Now let us move from the national level to our island. Mallorca has its own specific characteristics, and they are not encouraging.

The Balearic Islands, together with the Canary Islands, the Basque Country, Murcia, Valencia, and Cantabria, are among the regions where more than 82 per cent of buildings have low energy efficiency. This figure was published by the Spanish Ministry for the Ecological Transition and the Demographic Challenge. Eighty two per cent.

This is not just a majority but a dominant share. These are the rural fincas, homes in the centre of Palma, villas from the nineteen sixties in Calvià, and townhouses in Pollença with thick walls and beautiful views but without modern insulation.

We do not wish to alarm anyone, but the figures are clear. We live on an island where most of the housing stock was built at a time when European directives did not exist. Now this stock must be brought into line with requirements that will become stricter each year.

What Spain is required to do and by when

Let us look at what Spain must do and the relevant deadlines.

Timeline for new buildings

• From 2028, all new public buildings must qualify as Zero Emission Buildings.

• This means that a new school in Inca or a library in Manacor will not be permitted to connect to the gas network.

• From 1 January 2030, this requirement will extend to all new buildings without exception. Residential complexes, private villas, and apartment buildings constructed after 2030 must be carbon neutral.

Timeline for existing buildings

• For existing buildings, the Directive introduces minimum energy performance standards.

• Non residential property such as offices, hotels, and commercial premises

• By 2030, 16 per cent of the worst performing buildings must be renovated.

• By 2033, the figure rises to 26 per cent.

Residential property

Europe recommended setting a benchmark whereby by 2030 the minimum class should be no lower than E and by 2033 no lower than D. However, Spain, considering that 82 per cent of its buildings are inefficient, has taken a more cautious position. The government is not currently planning to introduce these strict limits. Public consultations have concluded, and property owner associations have been actively involved.

Market reality

It is important to understand that even if the government does not introduce a direct ban on selling or renting homes with a class G rating, the market will respond independently. We recently analysed how buyer behaviour has changed in the Mallorca property market in 2026. Buyers focus first on total ownership costs. They are already prepared to pay more for homes that will not result in high electricity bills.

A study by IESE Business School and Tinsa in 2025, based on an analysis of 240,000 properties, showed a direct correlation between energy performance class and price.

• Each step up the scale from G to A adds an average of 1.3 per cent to a home’s value.

• In northern regions, this figure reaches 4.8 per cent.

• Moving from class B to A increases the price by 2.1 per cent.

• Moving from class C to B adds 3.3 per cent.

• Even improving from E to D increases value by 1.2 per cent.

This is not theory. This is money already influencing transactions in the Mallorca property market.

A finca built from local natural materials can outperform urban villas in reducing its carbon footprint.

What will change with CEE certificates from 1 April 2026

Now let us consider what lies ahead in the coming months.

Main changes

From 1 April 2026, an updated certification system will come into force in Spain.

• The appearance of the documents will change.

• An electronic version of the paper certificate will be introduced.

• Instead of two categories of certificates, there will be three.

• A separate category for new builds will be added.

What this means for you

If you already have a certificate and it has not expired, you do not need to replace it. No one will require you to obtain a new one immediately. However, different types of certificates will coexist on the market. The new format will be considered more comprehensive and more closely aligned with European standards.

The new certificates will include the two additional indicators, GWP and SRI. They will be calculated alongside the existing parameters. Your home will still receive the traditional letter from A to G, and in addition, the engineer will calculate its life cycle carbon footprint and assess its readiness for smart technologies.

Previously, only electricity consumption was assessed. Now the evaluation will cover three dimensions.

How changes in energy performance ratings will affect property market participants

Energy performance ratings are no longer a technical detail buried in documentation. They directly influence property value, liquidity, mortgage approval, rental demand, and long term ownership costs. Below, we explain how these changes affect sellers, buyers, landlords, tenants, and investors in practical terms.

For sellers

If you are selling property now, there is still time. Demand for properties with class A and B ratings is growing, but buyers are not yet rejecting homes with class D or E ratings outright.

Research confirms that the higher the class, the greater the liquidity and the higher the price. This is supported by statistics and reflected in current transactions. Properties with class G or F ratings are losing value. They are not necessarily listed at lower prices, but they remain on the market longer, and sellers often need to offer discounts.

What sellers should do

• If you plan to sell in the coming months, obtain an updated certificate.

• Do not conceal a low rating. It is better to reflect it in the pricing strategy.

• If you are planning to sell in two or three years, commission an energy audit.

• Assess the cost of improvements and make an informed decision.

• Take advantage of government support programmes for renovation while they are available.

The Spanish government is subsidising energy renovation through recovery funds and national programmes. At present, obtaining funding for window replacement or solar panel installation is relatively straightforward. In the second half of 2026, after the adoption of new regulations, requirements for subsidy recipients may become stricter. This makes the current period favourable for investing in energy efficiency.

For buyers

For buyers, the situation is both simpler and more complex. Simpler because you are not tied to an existing property. More complex because informed choice requires analysis.

When viewing a property, you are not only considering the price per square metre. You are also assessing the monthly cost of maintaining comfort in that space. The difference in annual electricity bills between a class G home and a class B home can amount to thousands of euros. Over ten years of ownership, this difference can offset a substantial part of the purchase price gap.

Advice for buyers

• Negotiate on price if the energy performance class is low. This reflects future operating costs.

• Pay attention to the new GWP and SRI indicators. GWP reflects the environmental impact of construction materials. SRI indicates readiness for future technologies.

• Study examples of energy efficient projects in Mallorca.

Mallorca already has projects that illustrate future standards. The residential complex at Paseo Mallorca 15, designed according to passive house principles, consumes only 15 kilowatt hours per square metre per year for heating and cooling. This is around 90 per cent less than a conventional building.

Another example is a project of eight social housing units on the island, where architects used local marès sandstone and dried posidonia leaves for insulation, achieving consumption of only 7.49 kilowatt hours per square metre per year. These homes are designed to regulate temperature naturally, retaining cool air at night and releasing it during the day while using sea breezes for ventilation.

For landlords and tenants

Renting reflects the same principles as selling, but over a longer period. Tenants pay electricity bills, and they prefer homes with predictable operating costs.

In the long term rental market in Mallorca, properties with high energy performance ratings are rented more quickly and at higher prices. Tenants review certificates and ask about air conditioning systems and window specifications. Ten years ago, insulation was rarely discussed. Now it is part of the conversation.

For owners operating rental properties, this is a clear signal. In short term tourist rentals, electricity costs directly affect profitability. In long term rentals, competitiveness depends not only on location but also on operating expenses.

Rumours, concerns, and reality

There are many rumours surrounding the new Directive. The most common claim is that from 2030 the sale of homes with a class below E will be prohibited. This is incorrect.

The European Directive recommends such measures but does not impose them. Each country decides how to achieve the required targets. Spain, given the condition of its housing stock, is unlikely to adopt such measures in the near term.

However, market mechanisms are already evolving. Banks increasingly consider energy performance class when granting mortgages. Insurance companies are adjusting their rates. Valuers include energy efficiency in market assessments. There is no formal prohibition, but financial criteria are changing.

What to do right now

There is no single universal solution, because property owners and buyers are in very different positions. Someone is preparing to sell immediately, someone is planning a transaction in a few years, and someone is entering the market as a buyer. Each situation requires its own strategy, timing, and level of investment. That is why we outline three practical scenarios below.

Scenario one: you are selling in the coming months

• Obtain an updated energy performance certificate if the existing one is more than a year old.

• Reflect the rating transparently in your pricing.

Scenario two: you plan to sell in two or three years

• Commission an energy audit.

• Request a detailed assessment and recommendations.

• Improvements can be implemented gradually. In some cases, replacing lighting with LED systems may improve the rating. In others, window replacement or facade insulation may be required.

• Assess costs and determine priorities.

Scenario three: you are buying property

• Rely on documented data rather than appearance. A recent renovation does not guarantee good energy performance.

• Request the certificate before signing a preliminary agreement. If it is not available, include a clause requiring its provision.

• Review not only the overall rating but also technical details such as window specifications, heating systems, and the presence of solar panels.

Expert opinion from YES! Mallorca Property

Elena Mekhtyala, real estate expert at Yes! Mallorca Property

We have worked in the Mallorca property market long enough to remember when an energy certificate was obtained solely because the notary would not register a transaction without it. It was seen as bureaucracy rather than a meaningful indicator.

That perspective has changed.

Buyers from Germany and Scandinavia, accustomed to strict energy standards in their home countries, often question why a property with a class F rating is priced at a premium. It is difficult to justify such discrepancies.

Banks reviewing mortgage applications for class G properties request additional documentation and assess risk more carefully. High operating costs and reduced resale potential are considered financial risks.

Valuers apply downward adjustments to inefficient properties in line with updated methodologies influenced by European standards.

The market is responding before legislation imposes strict measures. Property owners need to adapt accordingly.

Frequently asked questions

Where can I find the official text of Directive 2024/1275?

The full text of Directive EU 2024/1275 is available on the European Parliament website in multiple languages.

When will the new certification system be implemented?

From 1 April 2026, new style certificates will begin to be issued. Full implementation depends on the approval of the updated national certification procedure. Public consultations concluded on 6 February 2026, and the next stage is scheduled for March 2026, followed by formal approval.

Do I need to replace my existing certificate?

No. If your certificate is still valid, it remains valid until its expiry date. A new certificate is required only if you carry out renovation works and wish to reflect an improved rating.

Should I be concerned?

There is no need for alarm. However, energy efficiency should now be treated as a material factor in property valuation and transaction planning.

Conclusion

There will be no automatic ban on selling or renting homes with low energy performance ratings from 2030. The Spanish government does not intend to introduce the strict limits recommended by the Directive in the immediate future. This reflects the current condition of the housing stock.

However, the market is already operating under new assumptions.

Energy efficiency has become a factor that influences value. Higher ratings improve liquidity and price potential. Lower ratings reduce competitiveness. Buyers calculate operating costs, lenders assess risk, and valuers apply adjustments.

If you are selling, review your certificate. If you are buying, factor the rating into negotiations. If you are planning a future transaction, consider budgeting for energy improvements.

Government subsidies for energy renovation are available. In the second half of 2026, regulatory changes may make achieving higher ratings more demanding. The current period therefore offers practical opportunities for modernisation.

The discussion is no longer abstract. It concerns operating costs and long term value.

If you have questions about your specific property, contact us. We provide a realistic assessment and professional guidance.

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