What is the purpose of an EPC or energy performance certificate?

Any real estate transaction in Luxembourg requires the submission of an Energy Performance Certificate. The EPC, or energy passport, certifies a home’s energy efficiency.
When selling or renting a property, the owner is required to provide the buyer with an energy passport demonstrating its energy performance.

Key points about the energy passport in Luxembourg

A document that is always required in key situations

In Luxembourg, the Energy Performance Certificate (EPC), also known as an energy passport, remains a legal requirement in several situations: sale, rental, new construction, or significant renovation of a property. It must be valid and provided to the buyer or tenant, and certain information must be included in real estate listings.

No direct obligation to renovate… but a changing regulatory framework

The EPC does not, in and of itself, require renovation work to be carried out. However, it is now part of a more ambitious energy policy at both the European and national levels. Energy performance requirements are gradually becoming stricter, particularly to reduce energy consumption in the most energy-intensive homes.

A growing impact for property owners

In recent years, the energy performance certificate has become a strategic factor. It influences a property’s value, how easily it can be rented or resold, and the terms for accessing real estate financing. Properties with the highest ratings are now more attractive, while energy-inefficient homes may require investments in the medium term.

Anticipate rather than react

Even in the absence of an immediate renovation requirement, homeowners would be wise to anticipate future changes. Improving a property’s energy performance not only reduces energy costs but also safeguards its value in a market increasingly focused on these criteria.

The EPC calculates a building’s energy performance

The Energy Performance Certificate is more commonly known as the energy passport.

The EPC defines the energy consumption of a building or dwelling. It is a multi-page document prepared according to very specific standards. The EPC identifies three main elements:

• the energy performance class. This determines the primary energy consumption index for the dwelling
• the thermal insulation class. This corresponds to the dwelling’s heating requirement index
• the energy performance class. This defines the building’s CO2 emissions.

Each classification is rated from A to I.

Grade A is the highest class. It corresponds to so-called passive houses. Class B is the grade assigned to low-energy-consumption homes. Class C corresponds to energy-efficient homes. Class I corresponds to the lowest class.

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When is the EPC mandatory in Luxembourg?

The Energy Performance Certificate has been mandatory since the Grand-Ducal Regulation of November 30, 2007. The EPC is valid for 10 years. It is transferred from owner to owner.

Mandatory EPC for the sale or rental of older buildings

The EPC is required for the sale, conversion, extension, or construction of a dwelling. Even in the case of a rental, the owner must provide the Energy Performance Certificate to the tenant.

In the event of renovation or improvement work on the building, it is advisable to obtain a new energy performance certificate. This is because the energy performance will be altered by the work. A new EPC will be very useful in the event of the property’s resale. The value of your property depends on it.

AAA Energy Performance Certificate for New Construction in Luxembourg

Since 2017, all new buildings in Luxembourg must meet an AAA rating across the three components used to calculate energy consumption.

EPC and Property Renovation in Luxembourg

In Luxembourg, the EPC serves for informational purposes only. Regardless of a building’s calculated energy performance, there is no obligation to renovate the property to improve its energy performance.

However, the Luxembourg government provides financial assistance for home renovations. These grants are specifically aimed at improving the energy performance of buildings.

Obtaining an Energy Performance Certificate in Luxembourg

An energy performance certificate is mandatory for property sales or rentals. The owner must be able to provide it. The Energy Performance Certificate must be issued by professionals certified by the Luxembourg government.

Although you can assess your home’s energy performance using tools available online, these assessments cannot serve as the official documents required for real estate transactions.

You can find a list of approved professionals on guichet.lu who can issue an Energy Performance Certificate for your home.

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Energy Performance and Rent Setting in Luxembourg

In 2022, the government drafted a bill aimed at linking rents to the energy performance of housing units with the goal of combating “energy-inefficient buildings.”

While this reform has not yet been fully implemented, it has nevertheless led to a downward adjustment of the rent cap, particularly for the least energy-efficient homes (classes F through I). As a result, the owner of an energy-inefficient home cannot charge the same level of rental yield as an energy-efficient home.

For the record, the maximum rent is currently set at 5% of the invested capital.

Learn more about renting a home in Luxembourg.