Are you prepared for EPC introduction in Spain?
The EPC or Certificado de Eficiencia Energetica (CEE) in Spanish, is designed to ensure that homes are run more efficiently and produce less carbon dioxide into the atmosphere and is the equivalent to the EPC – Energy Performance Certificate in the UK.
This stems from the Kyoto Agreement, which is a worldwide treaty in which the participating countries will do their best to reduce greenhouse gas emissions.
Each property is tested and given a score on a scale ranging from A to G, with ‘A’ being extremely efficient and ‘G’ being particularly inefficient.
EPC Regulations for Rental Properties in Spain
This is difficult to regulate, but if there is a let exceeding four months, proof of the EPC will be necessary.
If a property is currently being leased out then it is not a requirement to have an EPC certificate, although if a new lease is signed by a new tenant an EPC will be required.
If property owners fail to provide the tenant with the information from the EPC, then the contract can become void, the government can fine the property owner/rental agent and the tenant could claim compensation from either party.
EPC Requirements for Selling Your Property in Spain
For those planning on selling a property, they will need to make sure they have obtained an EPC before it is advertised and those properties already on the market will have a week after the 1 June 2013 to prove that they have applied for an EPC.
Once it has been applied for, the property owner has an additional three weeks to acquire it, although it is possible to apply for one before 1 June.
EPCs are essential when selling a property and estate/rental agents must ensure that the EPC score of your property is included in the property details.
If the property was constructed after October 2007 it could be that it already has a Spanish Energy Performance Certificate.
Details of this should be with the Architect’s plans.
Similar to renting, failing to own an EPC can result in an already agreed sale becoming void, with potential for the buyer to claim compensation.
In addition to this there is the chance that the property owner and estate/rental agent can be heavily fined.
EPC info for Spanish property owners and buyers
From 1st June 2013, Spanish property owners and buyers will need to know all about EPC (Energy Performance Certificate) or Certificado de Eficiencia Energética (CEE) and how it might affect you. If you currently own your home but use it for less than four months a year, you won’t need an EPC, however if you live in it permanently you will need one, especially if you’re planning on selling.
Spanish Property Sales who are expert property finders in the Costa Blanca regions of Moraira and Javea have been speaking to both owners and sellers of properties about EPC and provided the following information for others who want to know more about EPC.
The EPC is being introduced from June 1st in Spain as a result of the ‘Kyoto Agreement’, an international treaty that sees countries attempt to reduce their carbon footprint. The Spanish government is implementing EPC in order to establish the efficiency of properties (grading them A to G) with the aim to reduce unnecessary carbon emissions. The grades are like the stickers you see on fridge freezers and washing machines where ‘A’ is the most efficient and ‘G’ is the least efficient.
Those of you buying a property in Spain after June 1st you will need to make sure that an EPC is presented to you with the score. Otherwise the contract may become void and you may have grounds to claim compensation against the owner of the property and the estate agents.
The EPC will affect property owners the most although the outcome of the EPC tests will not require property owners to change anything (although it’s encouraged) within the property. However, if changes should be made to things like double-glazing windows and insulation then these changes will often means savings for the owner in the long term. The EPC should help sell the property because it will be less expensive to run and thus obtain a good energy efficiency grading.
Those properties in Spain that were built before 2000 which lack insulation and therefore have low energy grades will be at a slight disadvantage when being sold unless changes are made or price knocked off the sale.
As a result of EPC, older properties over time will become more insulated like the newer homes that have been built over the past decade and help cut carbon emissions.
For landlords already renting out a property in Spain to a tenant don’t need to have an EPC unless there is a change in tenants. Landlords that don’t obtain an EPC and present it to the new tenants risk the contract becoming void resulting in the new tenant possibly suing and also risk a government fine.
As you own a property in Spain do you need to compare home insurance prices to get a cheaper deal?
How Much is a CEE (EPC)?
One of the most frequently asked questions about EPC is of course, how much will it cost? The college of architects has released no set figures because it depends upon the type and size of a property. An average cost of approx €350 for an EPC is being rumored but nothing official released yet.
The cost will depend on the type and size of the property. It is advised to contact a registered assessor to find out more information. The cost of the certificate is set by each company/assessor so it will be a nice little earner for some people! The EPC certificate will remain valid for 10 years unless any major changes or renovations are made to the property during this period.
The government has said that they will fine people that have a property for sale or rent that does not have a required “EPC”. Fines of between 3000 and 600,000 euros can be given to anybody who needs an EPC who does not have one. This includes agents as well as private individuals. It remains to be seen how this will be enforced with so many properties in Spain.
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michael wilson says
Hello
I have read your excellent article regarding EPC. I have a restaurant in the Mijas area leased out to a tenant and understand i do not have to renew the EPC which expires at the end of this month.
But i also own the freehold of a villa which i have no intention of selling, i have lived there since 1994, again the current EPC expires in June thus year, in your article you again make mention of leased property but what about residential properties, do i only obtain an new EPC if say in 5 years i decided to sell.
I was one of the first to obtain the EPC in June 2013 so many peoples EPC will expire in June 2023, i have not received any reminder from the Town Hall and wonder if my property is not for sale if someone from the Town Hall is likely to knock on my door and check to see its been renewed. Kind regards. Michael