Property Refurbishment in Spain: An Issue Non-Resident Buyers Can No Longer Ignore

Every year, Spain attracts a large number of French buyers: second homes, buy-to-let investments, retirement in the sun, or a new lifestyle project. Yet behind the appeal of the Spanish property market lies a reality that now deserves particular attention: the ageing housing stock.

A large proportion of Spanish properties were built before the 1980s, at a time when insulation, accessibility and energy efficiency standards were very different from those in place today.

And this situation is now profoundly reshaping the Spanish property market.

An Ageing Housing Stock Facing New European Requirements

Today, energy renovation has become a major issue in Spain, driven both by new European regulations and by rising energy costs, recurring heatwaves, and the desire to reduce CO₂ emissions.

Buildings account for around 40% of total energy consumption. The European Union is now encouraging Member States to accelerate the modernisation of housing through the European EPBD directive and the 2030–2050 climate targets.
Energy Performance of Buildings Directive (EPBD)

In practical terms, this means that energy-inefficient properties could gradually lose their appeal, become more expensive to run, require significant renovation work, and see their market value evolve less favourably over time.

Conversely, renovated properties with strong energy performance are becoming increasingly sought after.

Many foreign buyers focus primarily on the location, the view, the rental potential and the purchase price. However, the actual condition of the building is now becoming just as strategic.

Before buying , it's very important to check :

• • EPC – Energy Performance Certificate 

• • The Age of the Building 

• • Building Works Approved by the Owners’ Association 

• • The Condition of the Facades and the Roof 

• • Electrical Installations 

• • Whether or Not the Building Has a Lift 

• • and future energy renovation requirements.

To better understand how the Energy Performance Certificate works in Spain:
Official information on the Energy Performance Certificate in Spain (IDAE)

In some Spanish co-owned buildings, major works may be approved after the purchase, with a direct impact on the owners’ budget. This level of vigilance is particularly important for non-resident buyers, who are often less familiar with how Spanish co-ownership properties operate and with the obligations associated with older buildings.

Sustainability Is Also Becoming a Property Value Criterion

For a long time, energy renovation was seen primarily as a technical matter, but today it is becoming a genuine property value criterion.

Renovated properties generally offer improved thermal comfort, significantly lower energy costs, a better quality of life, and greater resilience to extreme summer temperatures.

It is well established that a comprehensive energy renovation can reduce energy consumption by between 30% and 60%.

The most common improvements include:

• • Thermal Insulation 

• • Window Replacement 

• • Air Source Heat Pump Systems 

• • Solar Panels 

• • as well as the modernisation of electrical installations.

Further information on energy efficiency solutions is available from the IDAE:

Spanish Institute for Energy Diversification and Saving (IDAE)

Sustainability is therefore no longer solely an environmental concern; it is also becoming a factor in protecting and enhancing property value.

Significant Financial Support Still Largely Unknown

Many foreign property owners are unaware that Spain currently offers significant financial support schemes for energy renovation works.

Thanks to the European Next Generation funds, several billion euros have been allocated to accelerate housing refurbishment across Spain. Depending on the project and the level of energy savings achieved, some grants may cover between 40% and 80% of the renovation costs.

The official framework for renovation grants can be consulted here:
Spanish Ministry of Housing and Urban Agenda

Some regions also offer additional grants, tax incentives, and specific programmes depending on the type of property.

For non-resident owners or future expatriates, these schemes represent an opportunity that remains largely underestimated.

Financing Renovation Works Is Becoming a Central Issue

Today, buying an older property in Spain no longer simply means financing the purchase itself.

It is also becoming essential to anticipate future works, energy renovation requirements, and how these projects will be financed.

It is precisely at this stage that the support of a banking and financing expert becomes particularly valuable

Depending on the project, several solutions may be considered:

• • including the renovation works within the mortgage financing;

• • additional financing solutions

• • Re mortgage after renovations works

• • “green” loans dedicated to energy efficiency improvements

• • or even collective financing solutions for co-owned buildings

Some Spanish banks are also beginning to place greater value on energy-efficient properties, occasionally offering more favourable financing conditions, preferential interest rates, or a more positive assessment of long-term property risk. 🇬🇧

To follow official information from the Spanish banking sector:
Bank of Spain

The Spanish property market is gradually entering a new dynamic in which real estate, energy performance, and long-term wealth strategy are now increasingly interconnected.

Renovating in Spain: A Project That Requires the Right Guidance

Beyond financing and the grants available, renovating a property in Spain also involves specific challenges that should not be underestimated, particularly for non-resident owners.

Managing renovation works often involves:

• • local administrative procedures 

• • Approvals from co owners

• • coordination with architects and contractors;

• • the coordination of the various parties involved 

• • as well as monitoring timelines and budgets.

In older buildings, certain energy renovation or accessibility works also require specific technical and administrative approvals.

The Spanish market operates according to its own rules, timelines, and local practices. For a foreign buyer, managing a renovation project remotely can therefore be particularly challenging.

This is why support from professionals who understand both the Spanish property market, financing mechanisms, available grants, and the operational management of renovation works has now become a genuine factor in securing the project

Additional professional resources are also available from the Higher Council of Architects’ Associations of Spain:
Higher Council of Architects’ Associations of Spain (CSCAE)

A well-prepared and properly managed renovation project not only helps optimise the budget and available grants, but also ensures the long-term preservation of the property’s value.

A new way to invest in Spain

For many years, the main purchasing criterion in Spain was location.

Today, a property’s energy performance and its ability to retain its value over time are becoming just as important.

A poorly insulated older property may tomorrow lead to higher running costs, major renovation works, and a loss of attractiveness on the market.

Conversely, a renovated, well-financed, and energy-efficient property can become a far more secure and sustainable asset.

Conclusion

The refurbishment of Spain’s housing stock will be one of the major challenges of the coming years.

For non-resident buyers and property owners, it is no longer simply about purchasing a property in Spain, but about investing in an asset capable of adapting to the market’s new requirements.

Understanding the actual condition of a building, future renovation works, available grants, financing solutions, and the specific aspects of managing renovations in Spain has now become essential in order to secure and sustainably enhance a property investment in Spain.

Do you have a property project in Spain and would like support with a clear and secure approach?

OPENNESS By CARLOTA carry out a personalised preliminary feasibility assessment in order to evaluate:
• votre capacité de financement ;
• le potentiel réel du bien ;
• les éventuels travaux à anticiper 
• les aides mobilisables ;
• et la cohérence patrimoniale globale de votre investissement en Espagne.

A service specifically designed for non-resident buyers and investors.

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