Editorial transparency and use of artificial intelligence
This article forms part of the CostaLuz Lawyers blog and is published for general informational and educational purposes only. It was prepared with the assistance of artificial intelligence tools and, before publication, was substantively reviewed and editorially approved by Maria de Castro, a Spanish-qualified lawyer registered with the Cádiz Bar Association under number 2745, founder of CostaLuz Lawyers and the person responsible for the editorial review of the published content.
This article does not constitute legal, tax, immigration, employment, estate-planning or investment advice and does not replace an individual assessment and the professional work of the appropriate CostaLuz Lawyers specialist. No action or omission should be based solely on this information.
Spain has approved Order ECM/599/2025, which updates the country’s main property valuation framework for mortgages and financial institutions.
The new regulation takes effect on 12 August 2025 and significantly changes how homes and developments are appraised.
Below you’ll find clear answers to the key questions property buyers, sellers, and developers are now asking.
What is Order ECM/599/2025?
Order ECM/599/2025 (June 10 2025) modifies the well-known Order ECO/805/2003.
It sets out how valuations must be conducted for mortgage, insurance, and investment purposes.
From August 2025 onwards, no valuation can be used for financial purposes unless it complies with these new requirements.
Why does it matter for buyers, sellers, and developers?
The new law directly affects mortgage approvals, refinancing, and even sale prices.
If the property or documentation doesn’t comply, banks can refuse the valuation — delaying or blocking the transaction.
It also introduces new environmental, digital, and transparency standards that change how value is calculated.
Key changes in Spain’s 2025 property valuation rules
1. Sustainability and environmental factors
Valuers must now assess energy performance, environmental risks, and climate exposure.
Homes with poor energy efficiency may receive lower valuations.
2. Energy Efficiency Certificate (CEE) is now mandatory
Every property must include a valid and registered Energy Efficiency Certificate.
For properties under construction, proof of registration request is acceptable.
Without this, no valuation or mortgage process can move forward.
3. Construction and urban planning authorisations
Valuations may rely on an “essential authorisation” before full building licence approval — but only if it covers at least 60 % of the budget, includes structural and envelope works, and is duly registered.
This gives flexibility for developers but also increases risk if projects are altered later.
4. Digital signatures required
All professionals involved must sign the valuation report electronically with qualified or advanced digital signatures.
Paper signatures are no longer valid.
5. Redefinition of “usable area”
Exterior spaces such as terraces and balconies no longer count as usable floor area.
Properties with large outdoor spaces may see adjusted (lower) valuations.
6. Shorter validity of valuation reports
Valuations now expire after two years instead of three.
Banks and insurers will require more frequent updates.
7. Higher transparency and traceability
Each report must justify atypical surfaces, include detailed comparable data, and follow a clear, indexed structure.
This makes valuations more rigorous but also more demanding for technical teams.
8. Automated valuation models regulated
A new Article 15 bis defines when automated valuation models (AVMs) can be used.
Only homogeneous markets qualify, and every model must ensure methodological robustness, traceability, and validation.
9. Extended risk-warning period
The “specific warning” (advertencia específica) can now be triggered when a value drop is expected within 18 months (previously 12).
Valuers must anticipate and disclose risks earlier.
How do these rules affect your property transaction?
- An expired or missing Energy Certificate will stop the valuation process.
- Homes with terraces or poor energy ratings may lose market value.
- Developers must ensure their building authorisations comply with the new 60 % rule.
- Valuations older than two years will no longer be valid for financial institutions.
How to prepare before buying or selling property in Spain
- Verify that your Energy Efficiency Certificate is valid and registered.
- Ensure your architect, surveyor, or valuer signs documents digitally.
- Have your urban planning and legal documents reviewed by a lawyer.
- Update any outdated valuation reports before applying for financing.
Being proactive now prevents costly surprises once the new law takes effect.
Legal guidance from CostaLuz Lawyers
At CostaLuz Lawyers, we help property buyers, sellers, and developers comply with Spain’s new valuation framework under Order ECM/599/2025.
Our team reviews valuation, licensing, and energy documentation to ensure your transaction is mortgage-ready and compliant with Spanish law.
We offer a free preliminary review of your valuation and Energy Efficiency Certificate to identify potential issues before you commit.
Contact us today for a legal check tailored to your property and location.
You can also request our August 2025 Valuation Compliance Checklist for peace of mind before signing or refinancing.
Mortgage holder in Spain? Your mortgage may contain abusive clauses (floor clause, IRPH, excessive expenses, early maturity). CostaLuz offers a free mortgage review to check if you are entitled to a refund.
Legal Notice: The content on this page is provided for general informational and educational purposes only. It does not constitute legal advice and should not be relied upon as such. No action should be taken based solely on this content without first seeking independent professional legal counsel. Each case requires individual assessment based on its specific circumstances. CostaLuz Lawyers accepts no liability for actions taken or not taken based on this content.
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