I. THE VALUATION
I.1 Regulatory Framework
| a) Is there a legal framework in your Member State for the valuation of real estate for lending purposes (loan origination)? If yes: • Is this framework specifically for the valuation of real estate for lending purposes or are provisions enshrined in a broader piece of legislation? • Is it limited to the transposition of European or International Standards or is it broader in nature? • Please provide references and indicate whether it applies to both residential and commercial property. If there are differences between both property types, please explain. |
Yes, Spain has a specific legal framework for the valuation of real estate for lending purposes. Valuations carried out for mortgage loan origination are governed by the Ministerial Order ECO/805/2003, which establishes the technical and methodological requirements for valuations of real estate assets used as collateral in credit operations. This Order also covers additional valuation purposes within its scope: Valuation of real estate assets for insurance and reinsurance entities, both for accounting purposes (fair value under the Accounting Plan approved by Royal Decree 1317/2008) and for compliance with solvency requirements established in Law 20/2015. Calculation of the real estate assets of real estate collective investment schemes, as regulated in the implementing regulation of Law 35/2003, approved by Royal Decree 1082/2012. Calculation of the real estate assets of pension funds, as regulated in the Pension Plans and Funds Regulation approved by Royal Decree 304/2004. While the regulation aligns with certain European principles (e.g., prudent valuation, transparency), it is broader in nature, incorporating national requirements that go beyond the mere transposition of European or international standards. The regulation applies to all types of real estate—residential, commercial, industrial, and other property categories—without distinction in its core requirements. However, for residential or commercial properties, specific documentation is required. For example, in the case of building elements other than dwellings or parking spaces, the valuation must include documents such as the community statutes, an equivalent document, or a certificate from the property manager indicating any usage restrictions or other circumstances that may affect value. For residential properties, additional checks are required regarding the public protection regime. |
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| b) If there is no specific legal framework, is the valuation of real estate for lending purposes covered by other means, e.g. self-regulation, sector recommendations or supervisory guidance? | N/A |
| c) Do national valuation standards exist? Is there any cross-reference to European and/or International Valuation Standards (EVS/IVS)? |
Yes, Spain has national valuation standards. The ECO/805/2003 Order establishes comprehensive rules for the valuation of real estate assets, serving as the principal regulatory framework for mortgage valuations. These standards broadly align with the International Valuation Standards (IVS). In addition to this legal framework, the Asociación Española de Análisis de Valor (AEV) has developed a set of professional standards aimed at enhancing the quality, transparency, and consistency of valuation practices across the sector. These standards are adopted by AEV member valuation companies and are conceptually aligned with the International Valuation Standards (IVS). Among the most relevant AEV standards are the Sustainability Standard, which introduces environmental criteria into valuation processes; the Standard for Valuation of Properties Using AVMs, which regulates the responsible use of automated models with clear quality and traceability requirements; the Standard for Harmonization of Valuation Purposes; the Standard on Conditions and Disclaimers, which provides guidelines for the inclusion of technical and legal limitations in valuation reports; and the Standard for Measurement and Definition of Property Areas, which offers a precise methodology for quantifying and describing the surfaces of real estate assets. |
| d) How has the regulator in your Member State transposed Article 19(1) of the MCD regarding “reliable standards” for the valuation of residential property (into legislation or delivered through a professional body)? Indicate whether and how “reliable standards” are defined and whether and how the content of those standards are prescribed. |
In Spain, Article 19(1) of Directive 2014/17/EU (Mortgage Credit Directive – MCD) has been transposed through Law 5/2019, of 15 March, regulating real estate credit agreements. Specifically, Article 13 of this Law requires that any property offered as collateral must undergo an appropriate valuation prior to the conclusion of the loan agreement. This valuation must be performed by a valuation company or service of a credit institution regulated under Royal Decree-law 24/2021, or a certified professional in accordance with Royal Decree 775/1997, and must be independent from the lender or credit intermediary. The valuation must be conducted using reliable and internationally recognized standards, as defined by Order ECO/805/2003, which prescribes the technical framework for property valuation in Spain. Order ECO/805/2003 serves as the operative definition of “reliable standards” in Spain. It provides a comprehensive and prescriptive framework that includes the application scope, core principles, valuation definitions, valuation methods, and formal reporting requirements. Mandatory for valuations carried out for regulated financial purposes, the Order is broadly aligned with the International Valuation Standards (IVS): a joint analysis conducted by the International Valuation Standards Council (IVSC) and the AEV – Asociación Española de Análisis de Valor, concluded that there are no major contradictions between the ECO Order and IVS. The Bank of Spain supervises valuation companies and ensures compliance with applicable standards and independence requirements. The Ministry of Economy is responsible for updating valuation regulations and, in accordance with the Tenth Additional Provision of Law 5/2019, it has recently amended Order ECO/805/2003 through Order ECM/599/2025, of 10 June, which entered into force in August 2025. This update incorporates advanced valuation typologies, including, among others, the principle of sustainability, the use of automated valuation models (AVMs), and the mandatory use of electronic signatures on valuation reports. |
I.2 Valuation Bases & Methodology
| a) What valuation bases (Market Value, Mortgage Lending Value, etc.) are typically used in your Member State for the valuation of property for lending purposes (please disregard at this stage the specific requirements of Art. 229 CRR considering that the Property Value is not an independent basis of value). | The basis of value used in Spain for the valuation of property for lending purposes is the Mortgage Lending Value. |
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| b) Based on what definition? Please provide the definition and reference to where it can be located. | Mortgage Lending Value (individual property level): the value of a property as determined by a prudent valuation of its future marketability, taking into account the long-term sustainable aspects of the property, the normal regional market condition as well as the current and possible alternative uses. Potential speculative uses for the property at the date of the valuation are not considered. (Source: Article 4 — Definitions, ECO/805/2003 Order). |
| c) In case other valuation bases are used in your Member State for the valuation of property for lending purposes, please specify the effect, if any, on the final valuation. | N/A |
| d) Depending on the valuation base used, which valuation approaches or methods (comparison, income, cost, etc.) are typically applied in your Member State to value properties for lending purposes in each category? |
To calculate the Mortgage Lending Value of completed (not under construction) properties, the Adjusted Comparison method and the Income Capitalisation method are employed. In the Spanish regulatory context, the latter is typically applied through the updating of contractual or market rents over time. To calculate the Mortgage Lending Value of land or buildings subject to rehabilitation, the Adjusted Comparison method and the Residual (Static and Dynamic) method are employed. In the case of specialised properties with no clearly defined pool of buyers, the MLV is calculated using the Cost Method and the Income Capitalisation Method. To calculate the MLV of royalties, administrative concessions or leaseholds, the MLV is calculated using the Adjusted Comparison Method, the Inco+P15me Capitalisation Method and the Residual Valuation Method. Fully constructed properties: •Trade-Related Property: Adjusted Comparison method, Income Capitalisation method*, and Cost method. The appraised value will be the lowest result obtained from the three methods. •Leased properties or those intended for rental (excluding dwellings): Income Capitalisation method* based on market rents (or contractual rents if no market exists), and Adjusted Comparison method (adjusted for vacant possession where applicable). The appraised value will be the lowest result obtained from the two methods. •Leased dwellings: Income Capitalisation method* based on contractual rents, and Adjusted Comparison method (adjusted for vacant possession where applicable). The appraised value will be the lowest result obtained from the two methods. •Other properties: Adjusted Comparison method; if not applicable, then Income Capitalisation method* based on market rents; if still not applicable, then Cost method. Protected properties: •Dwellings and annexes: Value must not exceed the legally established maximum value. Properties under construction or rehabilitation: •General: Cost method. •Properties with suspended construction works: Cost method and Residual method. The appraised value will be the lowest result obtained from the two methods. Rural properties: •To determine land value: Adjusted Comparison method and Operating Income Update method. The appraised value will be the lowest result obtained from the two methods. Plots and land: •Urban or developable land: Adjusted Comparison method; if not applicable, then Residual method. •Non-sectorised developable land or non-developable land: Adjusted Comparison method and Operating Income Update method. *Applied, in the Spanish regulatory context, through the updating of contractual or market rents over time |
I.3 Valuation Report: Form & Content
| a) Does the legal or professional framework in your Member State specific to the valuation of properties provide minimum requirements in terms of the form and content of the valuation report? If yes, please indicate what these minimum requirements are. |
Yes, Order ECO 805/2003 dedicates Articles 61 to 78 provide a detailed description of the minimum requirements in terms of the form and content of the valuation report (Elaboration of the valuation report and the valuation certificate). The report must include, at a minimum, the following sections: -Applicant and purpose of the valuation -Identification and location of the property -Checks carried out and documentation consulted -Description of the locality and surroundings -Description and surface area of the land -Description and surface area of the building -Urban planning status -Legal regime regarding protection, tenure, and occupancy -Market analysis -Data and calculation of technical values -Final valuation figures -Conditions and warnings -Additional observations -Date of issuance, expiry, and signatures -Annexed documentation -Index at the beginning of the report indicating the page number of each section and annexed document |
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| b) Should the form and content of valuation reports be prescribed, are there differences between residential and non-residential properties? Please describe as appropriate. | There are no significant differences in the required content between valuation reports for residential and non-residential properties. The same minimum sections must be included in both cases, although certain sections may differ to reflect specific characteristics depending on the type of property being valued |
| c) If the form or content of the valuation report are not prescribed, what form does the valuation report typically take? Please specify differences between residential and commercial property valuation reports. | N/A |
I.4 Technology & Valuation
| a) Does the legal or professional framework in your Member State provide specific rules/guidance on the use of digital valuation tools (AVMs, Artificial Intelligence etc.)? If yes, what does this consist of and is it restricted to a particular type of property? Please specify whether there is a correlation with the requirements of Article 208(3a) CRR and of section 7.4 of GLOAM or whether the latter provisions are of stand-alone application in your Member State. |
Yes, the Bank of Spain, which oversees the banking sector, issues “Circulares” on the use of AVMs which are binding on banks and on Valuation Firms: -In the Circular 4/2017, the Bank of Spain sets out those cases where financial institutions are allowed to use AVMs to value specific parts of their portfolios. -In 2019, the Bank of Spain published a Supervisory Guideline for the use of AVMs by appraisal companies, which sets out best practices and technical requirements for AVM use, including the need for robust and traceable methodologies, calibration and documentation of the models and quality control through sampling and backtesting. According to this guideline, AVMs should be used exclusively for properties with a certain degree of homogeneity—that is, assets with repeatable characteristics located in active transaction markets, where sufficient comparable data is available. The recent amendment to Order ECO/805/2003, effective August 12, 2025, introduces Article 15 bis, which regulates the use of AVMs for valuations carried out under Royal Decree-Law 24/2021, in any case, it is important to emphasize that AVMs are strictly prohibited for use in mortgage origination. The general framework of this new article draws directly from the abovementioned Bank of Spain’s 2019 Supervisory Guideline. The Bank of Spain is expected to issue a new Circular to further detail the requirements for AVM-based valuations. In addition, the AEV has issued an AVM`s Standard Guide for professional valuation firms to follow and comply. |
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| b) For what purpose are digital tools and/or AI employed in your Member State? - Mortgage origination, monitoring and review of property values, revaluation etc. - Capital requirements, covered bond funding, securitisation transactions, mortgage portfolio risk management etc. |
AVM & AI are not allowed for use in Mortgage Origination. Circular 4/2017 of the Bank of Spain, que entró en vigor el 1 de enero de 2018, regulates the frequency and methodology with which valuations for accounting purposes must be carried out by financial entities, came into effect. Its objective is to monitor and mitigate credit risk associated with mortgage products, and it obliges the annual revaluation of assets securing non-performing loans, loans under special monitoring (Stage 2), and assets allocated to financial institutions. Moreover, it obliges banking entities to pay attention to any possible market drops, in which case they must also revalue the guarantees of all loans in normal and sub-standard situations. The Circular allows valuations of these types of assets to be carried out using AVM methodologies whenever their values are below 250.000 € and they can be considered “susceptible to repeated production” (e.g.housing units, garages or storage rooms). The Circular allows valuations of these types of assets to be carried out using AVM methodologies only in very specific situations, depending on the credit risk classification, the type of property, the amount of the transaction, and either the length of time in the risk category or the time held on the balance sheet in the case of foreclosed assets. In all cases, the assets must be considered “susceptible to repeated production” (e.g. housing units, garages or storage rooms), and the valuation must follow generally accepted valuation practices. |
| c) Scope of digitisation: Please determine the scope of automated and digitised tools in your Member State. Are they confined to data collection, do they deliver reliable property values or are they even used to produce full or partial valuation reports including description of locations, infrastructure, building characteristics etc.? If the latter is the case, is internal data used or it is permitted to purchase data from an external data provider? |
Certain stages of the valuation process, such as reading and interpreting documentation, have undergone significant digital transformation. In recent years, tools for data processing and syntactic analysis—such as parsers—have been developed to extract key information from property registry documents or data from external sources like the cadastral registry. AI is currently playing a role in these processes by transforming administrative tasks, streamlining workflows, and improving operational efficiency. Virtual assistants and chatbots are increasingly used to facilitate communication between clients, valuation firms, and banks. AI also supports operational tasks such as automated assignment of valuation tasks, monitoring and automated generation of budgets, reports, and invoices; and assistance in drafting valuation reports through automated text generation. In Spain, mortgage lending requires a full individual valuation in accordance with Order ECO/805/2003, which mandates an interior inspection and a signed report by a qualified technician affiliated with a valuation company authorized by the Bank of Spain. As a result, the scope for AI in the actual valuation process is limited. AI can only act as a support tool for the appraiser. AI may also assist the valuation firm in tasks such as error detection, comparable property search, predictive market analysis, and the integration of sustainability criteria. There is significant adoption of digital and automated tools—particularly AVMs—in the accounting valuation of properties held as collateral or repossessed assets. However, the Bank of Spain has set clear limitations on their use, as detailed in its supervisory guidance (see response 1.4.a). |
| d) Quality requirements: How are the reliability of the tools and their outputs assessed, e.g. by controlling the inputs, back-testing, supervision and/or plausibility checks by valuers etc.? |
According to the Bank of Spain’s Supervisory Guide for the Use of AVMs, the reliability of AVM outputs must be assessed through robust validation procedures. Section 2.7 of the guide mandates the implementation of backtesting, requiring valuation companies to perform a statistically significant sample of full individual valuations among the properties assessed via AVMs. Valuation companies must apply a solid, regular, and properly validated methodology that rigorously estimates current property prices in their respective local markets. To ensure estimation accuracy, AVM results must be contrasted with actual market transactions or full individual valuations conducted within the twelve months prior to the AVM-based valuation, using comparable assets in terms of location, size, construction, and other relevant characteristics. Valuation companies must apply prior data cleansing procedures, including criteria for detecting and correcting errors, missing information, and outliers. Techniques such as winsorizing or trimming are used to treat extreme values and ensure data consistency. Before accepting an AVM valuation assignment, firms are expected to verify the sufficiency of available property data—such as cadastral identifiers, postal codes, built and usable areas, terraces, bedrooms, garages, storage units, age, condition, year of last renovation, protection status, and geolocation coordinates. Annex 4 of the guide outlines the quantitative metrics required to evaluate AVM reliability. These include the Mean Absolute Percentage Error (MAPE), which measures the average percentage deviation between AVM estimates and benchmark values; the Root Mean Squared Error (RMSE), which reflects the magnitude of absolute errors; and the Coefficient of Dispersion (COD), which assesses the variability of valuation results relative to the median ratio. In addition, the AEV’s Standard for the Valuation of Real Estate Using Automated Valuation Models (AVMs) establishes a rigorous backtesting procedure to ensure model reliability. |
| e) Do you foresee an increase in the use of automation and digitisation of property valuation processes in the future? Please describe potential technological developments which could impact the valuation profession and accelerate its transformation, notably through the use of AI. | Looking ahead, several Spanish valuation firms—particularly those with greater technological development—are closely monitoring improvements in AVM models, economic indices, drone technology, smart homes equipped with cameras, and artificial intelligence. |
I.5 ESG, climate risk, transformation risk
| a) How are ESG factors and climate risk taken into consideration in the valuation process? Do Market Values and/or Mortgage Lending Values reflect the ESG characteristics of properties? |
As of August 12, 2025, a modification to Orden ECO/805/2003 enters into force, introducing the Principle of Sustainability. Under this principle, property valuation methods must consider, where applicable, indicators reflecting the impact of environmental factors on the value of the asset. In applying this principle, environmental and climate-related risks that may affect the property will be taken into account. In general, Market Value implicitly reflect the Environmental characteristics of properties, although not always in a disaggregated or explicit manner. -Territorial scale: Environmental risks such as desertification or temperature rise tend to affect entire municipalities or regions uniformly. These risks are therefore embedded in local real estate market dynamics rather than being attributed to individual assets. -Property-specific level: Features like energy efficiency were traditionally captured through the assessment of construction quality, which influences both market perception and valuation outcomes. For example, better insulation, modern HVAC systems, and sustainable materials contribute to higher ratings in the building’s technical appraisal, indirectly reflecting ESG performance. Regarding the Social and Governance aspects of ESG, these are systemic characteristics that tend to affect the real estate market as a whole, rather than individual properties. Dimensions such as institutional stability, regulatory quality, and social cohesion shape investor confidence, market transparency, and long-term demand across entire regions or countries. In addition, the AEV has issued a Sustainability`s Standard Guide for professional valuation firms to follow and comply. |
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| b) Are there rules in your Member State requiring assessment of EU Taxonomy alignment of a property in the valuation report and the subsequent impact of compliance/non-compliance on property values? |
The reform of Order ECO/805/2003, effective from 12 August 2025, introduces the Principle of Sustainability, requiring valuers to consider environmental and climate-related indicators when relevant to the asset’s value. However, there is currently no regulatory obligation to assess EU-Taxonomy alignment or to quantify its financial impact on valuations, although some valuation firms have already begun to incorporate such assessments voluntarily. In this context, the AEV – Asociación Española de Análisis de Valor has published a Sustainability Standard, approved on 23 July 2025, which mandates the systematic identification of climate and environmental risks in valuation reports. These include, at minimum: wildfire, river flooding, coastal flooding, desertification, seismic hazard, and volcanic hazard. Where market conditions reflect environmental or climate factors in price formation, and it is technically feasible to incorporate them into valuation methods, these risks—along with the property’s energy efficiency rating, if available—should be considered in the valuation outcome. |
| c) Are digitised tools and AI applied in order to capture and/or measure the impact of ESG factors and climate risk on property values? | Yes, several valuation firms and technology providers are increasingly applying digitalised tools to integrate ESG factors and climate risk into property valuations. |
I.6 Market Initiatives
| a) Please describe any market initiatives which have been undertaken in your Member State (including cross border initiatives) and which have promoted market best practices and/or transparency of valuation practices. |
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II. THE VALUER
II.1 Regulatory Framework
| a) Is property valuation a regulated profession in your Member State (through legal, regulatory or statutory rules)? | Please refer to 2.2(a). |
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| b) Is the use of the title of valuer protected in your Member State? If yes, by whom? | Please refer to 2.2(a). |
| c) If the title of valuer is not protected in your Member State, how do lenders ensure that they work with ‘qualified’ valuers? Are there ‘professional’ certifications for property valuers in your Member State? If yes, please name them. | Not applicable. |
| d) Is the regulatory or professional framework the same for all valuers, whether they value residential and/or commercial property? Or are there differences? Please describe as appropriate. | In Spain, the regulatory and professional framework is the same for all valuers, regardless of whether they value residential or commercial property. |
II.2 Qualification and Independence
| a) The qualified valuer • How has the regulator in your Member State transposed the requirements of Article 19(2) of the MCD, of Articles 229(1) and 208(3b) of the CRR regarding the instruction of “professionally competent valuers” or valuers who possess the “necessary qualifications, ability and experience” (transposition through legislation or by self-regulation)? Indicate how professional competence and qualification requirements are prescribed. |
In Spain, Article 19(2) of Directive 2014/17/EU (Mortgage Credit Directive – MCD) has been transposed through Law 5/2019, regulating real estate credit agreements. Specifically, Article 13 of Law 5/2019 mandates that any property offered as collateral must undergo an appropriate valuation prior to the conclusion of the loan agreement. This valuation must be performed by a valuation company or service of a credit institution regulated under Royal Decree-law 24/2021, or a certified professional in accordance with Royal Decree 775/1997, and must be independent from the lender or credit intermediary. Royal Decree 775/1997 establishes that the homologation (Official Recognition by the Bank of Spain) of a Valuation Firm will be obligatory when valuing properties intended to serve as a guarantee for mortgages (origination and valuation update of mortgage collateral). Among the requisites for the homologation process, valuation firms are required to count on the following resources: -To have a minimum of 10 professionals*, of whom at least 3 must be “linked valuers”—meaning they contribute exclusively to a single valuation company—bound to it on a permanent and exclusive basis. Their role is to ensure that valuation companies maintain sufficient and accurate knowledge of the real estate market in which they operate, and that applicable valuation standards, legal obligations, and incompatibility rules are uniformly and correctly observed. These “linked valuers”, in addition to holding the required educational qualifications, must also have a minimum of three years’ experience conducting valuations. -A minimum structure of technical and human resources, as well as internal control mechanisms to ensure an accurate knowledge of the situation and conditions of the real estate market in which the firm is operating, and that the applicable valuation regulations and legal obligations and incompatibilities are uniformly and correctly observed. * With regards to the “professionals” contributing to the valuation work of the valuation firms, the Royal Decree 775/1997 establishes specific requirements for the professionals who shall be engaged in the valuation of properties by the valuation firm. These professionals, to be enabled by law to participate in the valuation of urban properties or land plots intended to contain residential buildings, must be “architects and/or building engineers”; for the rest of property classes, they must be “engineers of the correspondent specialty, depending on the nature of the valued property”. With respect to Articles 229(1) and 208(3b) of the CRR, since the Capital Requirements Regulation is directly applicable across all Member States, no transposition into national law is required. However, the requirements regarding the necessary qualifications, ability, and experience of valuers have already been effectively addressed in the previous paragraph |
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| a) The qualified valuer • If professional competence, qualification, ability and experience requirements are not prescribed, what is general practice with regard to professional qualifications? |
Not applicable. |
| b) The independent valuer • How has the regulator in your Member State transposed the provision in Article 19(2) of the MCD or in Articles 229(1) and 208(3)(b) of the CRR regarding “sufficient independence from the credit underwriting process” or “independence from the loan processing and loan decision process” (through legislation or delivered through self-regulation)? Indicate whether and how the requirement is defined and whether and how it is prescribed. |
As stated in response to question 2.2.a of this questionnaire, in Spain, Article 19(2) of Directive 2014/17/EU (Mortgage Credit Directive – MCD) has been transposed through Law 5/2019 of 15 March, regulating real estate credit agreements. This law does not modify the existing framework governing the competence and independence of valuation firms, which is established under Royal Decree 775/1997. Royal Decree 775/1997 establishes in its Article 13 that those professionals contributing to the issuing of valuations by Valuation Firms registered in the Bank of Spain will not be able to participate in the valuation of properties, assets, enterprises or patrimonies owned by persons or entities with whom the professional cannot reasonably maintain an independent position, affecting his objectivity during the valuation process. Same limitation applies to valuation firms when such conflicts of interest is detected affecting shareholders, members of the board and top officials of the firm. With respect to Articles 229(1) and 208(3b) of the CRR, since the Capital Requirements Regulation is directly applicable across all Member States, no transposition into national law is required. However, the requirements regarding sufficient independence from the credit underwriting process have already been effectively addressed in the previous paragraph. |
| b) The independent valuer • If “sufficient independence” is not prescribed, what is general practice to ensure the valuer is unbiased and not subject to undue pressure? |
Not applicable. |
II.3 External vs. Internal
| a) Does the legal or professional framework in your Member State specific to the valuation of property for lending purposes lay down rules for banks and lenders as to whom they may use to value properties? • If yes, do credit institutions have the possibility to employ both internal and external valuers? • Is one type of valuer typically employed more frequently than the other? |
Yes, credit institutions must employ valuation companies approved and registered by the Bank of Spain. No, credit institutions must use independent, external valuation firms certified and in good standing with the Bank of Spain requirements. Not applicable. |
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| b) If there is/are no legislation/rules regarding the use of external and internal valuers, what is typical practice? | Not applicable. |
II.4 Professional Indemnity Insurance
| a) Does the legal or professional framework in your Member State specific to the valuation of property for lending purposes require: • Valuers to have professional indemnity insurance cover? • Lenders to use only valuers covered by professional indemnity insurance? |
Yes. Valuation firms authorised by the Bank of Spain are required to maintain professional indemnity insurance as a condition of their approval under Royal Decree 775/1997. In addition, it is common practice for valuation firms to require external valuers (i.e. independent professionals who collaborate in the issuance of valuation reports) to hold professional indemnity insurance covering their valuation activity. Yes, lenders may only use valuation firms which must have professional indemnity insurance. |
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| b) If there are no such requirements, how are lenders/valuers covered for the risk? • Is/are there legislation/rules in your Member State determining the responsibility of the valuer vis-à-vis his client? If yes, please describe the legislation/rules and the responsibility of the valuer. |
Not applicable. |
III. VALUATION & CAPITAL REQUIREMENT
| a) Property Value How are the Property Value requirements of Article 229(1) CRR transposed in your Member State: • by calculating the Mortgage Lending Value • by Market Value adjustments ◦ adjustments determined by the valuer on a single property by property basis ◦ adjustments determined by the credit institution on a portfolio level based on internal historic market data series ◦ adjustments determined by the credit institution on a portfolio level based on data provided by external research institutes or data providers |
Under the amended Article 229(1) of the CRR, EU Member States are required to adopt a property value that must not exceed market value and must be determined using prudently conservative criteria. This value must exclude expectations of future price increases and be adjusted to reflect the possibility that current market prices may significantly exceed the level that would be sustainable over the life of the loan. In Spain, mortgage valuations have long followed the principle of prudence, as established in Article 3.1.f) of Order ECO/805/2003, which states that when faced with several equally probable scenarios, the one resulting in the lowest valuation must be selected. The regulation also requires valuations to exclude speculative price increases, particularly those driven by artificial market distortions. This is reflected in the definition of mortgage lending value provided in Article 4 of the same Order (see response to question 1.2.b). If there is a high risk that current market values may not be sustainable over time, adjustments must be made to reflect potential long-term declines. According to the Order ECO/805/2003, adjustments to market value must be applied under the following conditions: oThe valuation has been performed exclusively using the comparison method; and oThe valuation company estimates a high probability of a significant nominal value reduction within 18 months from the expiry date of the valuation. In such cases, the valuation company will determine the appropriate adjustment. If market data do not allow for a reliable estimate, a 10% reduction will be applied by default, or 15% if significant volatility is observed. Spain has not required a specific regulatory transposition of the principles set out in Article 229(1) of the CRR regarding the prudent valuation of real estate collateral, as its national framework has long applied functionally equivalent criteria. These principles are embedded in Order ECO/805/2003, which constitutes the methodological foundation for mortgage valuations in Spain, ensuring independence, prudence, and traceability. Building on this foundation, Bank of Spain’s Circular 4/2017 sets out the operational procedures requiring that the recoverable amount of real estate collateral be adjusted from its reference value by applying discounts that reflect estimation uncertainty, potential value declines up to the point of enforcement and sale, and associated costs (enforcement, maintenance, and disposal). These adjustments are determined using internal methodologies developed by the credit institutions themselves. Such methodologies must be based on historical experience in the sale of comparable properties, including data on prices, timeframes, volumes, and realisation periods. This experience is deemed sufficient when the institution has sold at least 10% of its average annual inventory and 75 properties of the same type. In addition, institutions must maintain complete and traceable internal databases capturing all relevant information from the time of repossession to derecognition from the balance sheet, thereby reinforcing the use of internal historical series as the basis for adjustments. As an alternative, the Spanish regulatory framework requires all institutions—regardless of the maturity of their internal models—to apply standardised percentage discounts in benchmarking exercises and in the preparation of regulatory reporting (statement FI 131-5.4). These discounts, set out in the table under paragraph 172 of Annex IX to Circular 4/2017, represent global adjustments to the reference value applicable to different types of foreclosed or repossessed real estate assets. It also includes a general reference on disposal costs, noting that these vary by asset type and should not, as a general rule, be considered lower than 5%. Furthermore, any limiting conditions or disclaimers identified by the valuer in the valuation report—particularly those arising from the inability to inspect the interior of the property—must be assessed by the institution to determine whether additional adjustments to the reference value are warranted, where such factors have not already been reflected by the valuer. Under the Spanish regulatory framework, this option is not envisaged for the estimation of the recoverable amount of real estate collateral. Bank of Spain´s Circular 4/2017 requires that adjustments to the reference value be determined using internal methodologies developed by the credit institution itself, based on its historical experience in the sale of comparable real estate assets. This experience must be both sufficient and traceable, and supported by complete internal databases. As an alternative, for institutions that have not developed such methodologies, the Circular mandates the application of standardised percentage discounts defined by Bank of Spain, as set out in the tables under paragraphs 138 and 172, both included in Annex IX. These discounts are not based on data provided by external research institutes or commercial data providers, but have been directly estimated by the supervisory authority based on its knowledge of the Spanish banking sector and established market practice. |
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| b) Monitoring of property values Has the regulator in your Member State laid down criteria regarding "more frequent monitoring where the market is subject to significant changes in conditions"? |
Yes. According to Bank of Spain’s Circular 4/2017, Annex IX, section 2.2.2, institutions must verify at least annually whether there are signs of significant declines in the value of real estate collateral. This verification may rely on market indices or the opinion of an independent valuer. If, as a result of this verification, a significant decline in the reference value is identified, the valuation must be updated immediately by certified and independent valuation companies, regardless of the regular update schedule. |
| b) Monitoring of property values Has the regulator in your Member State laid down criteria regarding “advanced statistical or other mathematical methods” complying with the technical requirements of Article 208(3a) CRR? |
Yes. Spain has laid down specific criteria for the use of advanced statistical methods, particularly automated valuation models (AVMs), in line with Article 208(3a) CRR. These criteria are reflected in three layers of regulation: 1.Bank of Spain’s Circular 4/2017, Annex IX, section 2.2.1, 78 b), already recognised AVMs as a valid valuation procedure, provided they are developed by certified and independent valuation companies, applied to homogeneous properties, follow generally accepted valuation practices, and are benchmarked against full individual valuations. 2.Order ECO/805/2003, Article 15 bis, introduced in the August 2025 update, formally regulates AVMs for the first time. It sets out technical requirements regarding property homogeneity, dual estimation of market and mortgage lending value, and robust methodologies. It also mandates that Bank of Spain develop further requirements via circular. 3.Bank of Spain´s Supervisory Guide on AVMs (2019), although predating the 2025 update, remains the operative technical reference. It outlines standards for data representativeness, model validation, internal controls, and prudent application. Until the new circular is issued, this Guide provides the applicable framework for AVM deployment in Spain. |
| b) Monitoring of property values Please provide an overview of the different statistical methods/tools complying with Article 208(3a) CRR applied by lenders in practice. |
In Spain, the use of statistical models for property value monitoring is governed by Bank of Spain’s Supervisory Guide on AVMs. According to Annex IX, section 2.2.1, 78 b), of Circular 4/2017, AVMs may only be applied to properties with a sufficient degree of homogeneity — meaning repeatable characteristics In addition, the recent update of Order ECO/805/2003 through Order ECM/599/2025, in force since 12 August, reinforces this principle by establishing that only properties with a certain level of homogeneity—defined as having characteristics suitable for repeated production and being located in an active transactional market—may be valued using automated models. Valuation companies are expressly prohibited from accepting valuation assignments unless they have verified the sufficiency and quality of the available data regarding the characteristics of the properties to be valued. This ensures that valuation companies have access to adequate data for mass processing and modelling. According to Bank of Spain’s Supervisory Guide on AVMs, Automated Valuation Models must adhere to generally accepted valuation standards and good practices, which include the following: - Hedonic regression models: These use multivariate statistical techniques (typically multilinear regression) to estimate property value based on key characteristics, including sociodemographic factors of the area. They require detailed property-level and location-specific data and may incorporate adaptive algorithms or artificial intelligence, such as neural networks. - Comparable models: These rely on selecting a sample of similar properties in the same area, with comparable construction features, surroundings, and market conditions, to establish a price relationship. - Mixed models: These combine elements of both hedonic and comparable approaches, with an added subjective component in the weighting of results. It is not considered good practice to simply index a previous valuation using general price indices. In some cases, AVM results may be adjusted by expert judgment or additional checks by a valuer. These are referred to as AVM (A) — assisted AVMs — which tend to be more accurate but also more resource-intensive. |
| c) Review of property values and revaluation • Has the regulator in your Member State laid down criteria which define “review” of the property valuation? If so, what are the minimum and maximum periods within which a review must be conducted? Based on which criteria? |
Please refer to 7(g) |
| c) Review of property values and revaluation • Has the regulator in your Member State laid down criteria which define “material decline relative to general market prices”? How are ESG-related considerations assessed as an indicator for a material decline? |
Bank of Spain has not issued a formal or quantitative definition of “material decline relative to general market prices.” However, Circular 4/2017, Annex IX, section 2.2.2, paragraph 81, requires institutions to verify at least annually whether there are indications of significant declines in the reference valuations of real estate collateral classified as performing. A similar obligation applies under paragraph 84 for exposures under special monitoring. This assessment should take into account relevant indicators such as the evolution of published indices on mortgage market prices, as well as the opinion of an independent valuer. If a material decline is identified, the valuation must be updated by certified and independent valuation companies. The regulation does not specify a numerical threshold or define “general market prices” as a technical concept, leaving the interpretation to the institution’s judgment based on available data and expert input. Regarding ESG-related considerations, valuation companies in Spain are required to consider environmental and climate-related factors when these are relevant to the local real estate market, as established in the updated Order ECO/805/2003. From the perspective of the independent valuer — in Spain, certified valuation companies authorised by Bank of Spain — environmental and climate-related criteria are an intrinsic part of how market value is constructed. In other words, real estate markets already reflect ESG-related factors implicitly through pricing mechanisms. However, the updated Order ECO/805/2003 now requires that environmental and climate factors be made explicitly visible in valuation reports whenever they are relevant to the formation of value. That said, it is a different matter to treat ESG considerations as indicators of a material decline in value. These are often linked to unpredictable phenomena, such as natural disasters, and are not currently defined as formal triggers for revaluation under the Spanish valuation regulatory framework. A recent example illustrates how ESG-related risks can be translated into valuation criteria through coordinated sectoral action. In late October 2024, a cut-off low over inland Spain caused intense rainfall and flooding across the Valencian Community, resulting in severe damage to infrastructure and property. In response, the AEV assessed whether common valuation guidelines were needed for the affected areas. Following consultation with Bank of Spain, it was agreed to apply a mortgage adjustment in the most severely impacted zones, given the absence of mitigation measures and the increased likelihood of future damage. AEV member companies analysed 28 identified areas to assess whether there was a high probability of nominal value decline within one year from the valuation date, with effects expected to last at least two years. This assessment combined qualitative surveys conducted by valuers on the ground with quantitative analysis. For the affected areas, a mortgage adjustment starting at 10% was applied to values determined by the comparison method, with further distinctions based on property characteristics (e.g., ground-floor units). The agreement was reviewed quarterly to monitor market evolution. The Valencia experience demonstrates the robustness of the Spanish valuation model—anchored in technologically advanced appraisal firms and expert valuers with deep local knowledge. It shows how ESG-related risks, when properly assessed, can be translated into concrete valuation criteria, reinforcing transparency and resilience in volatile market conditions. |
| c) Review of property values and revaluation • Please provide a description of how ‘reviews’ are carried out in your Member State, e.g. by a new full-size valuation report, a desk-top valuation, a valuation certificate, a plausibility assessment or alike. What criteria are used to determine how the reviews are to be carried out? |
In Spain, the review and revaluation of property valuations are governed by Bank of Spain’s Circular 4/2017, Annex IX, sections 80 to 84. The procedures vary depending on the type of collateral, the classification of the exposure, and the materiality thresholds established by regulation. At the time of loan origination, institutions are required to obtain a full individual valuation report. For performing exposures, if a material decline in value is identified, the valuation must be updated by certified and independent valuation companies, either through a new full individual valuation or, where appropriate, by means of AVMs. Properties other than completed buildings, as well as exposures exceeding EUR 3 million or 5% of the institution’s own funds, must be revalued through full individual valuations at least every three years, or immediately if a significant decline is detected. For exposures under special monitoring, the same rules apply as for performing exposures. However, annual updates are mandatory when the total gross book value of such exposures exceeds EUR 300 million or 10% of the institution’s own funds, or when the gross book value of an individual exposure exceeds EUR 1 million and the loan-to-value ratio is greater than 70%. In these cases, full individual valuations are required, although AVMs may be used exceptionally if the institution can justify their suitability. For non-building collateral and for exposures above EUR 3 million or 5% of own funds, full individual valuations are always required. For exposures classified as non-performing, the reference valuation of the collateral must be updated at the time of classification and at least annually thereafter. Where the collateral consists of completed buildings and the gross exposure is equal to or below EUR 300,000, AVMs may be used provided the properties are suitable for mass valuation models and the institution can justify their appropriateness. However, if the exposure remains in the non-performing category for more than three years, a full individual valuation becomes mandatory. After this point, AVMs and full valuations may be combined, provided that full valuations are carried out at least every three years. For foreclosed assets or those received in lieu of payment, the fair value at the time of acquisition must be based on a full individual valuation report, in accordance with the requirements set out in paragraphs 78 and 79. After acquisition, the reference valuation used to estimate fair value must be updated at least annually, also through full individual valuations. However, if the fair value of the asset is equal to or below EUR 300,000, AVMs may be used provided the properties are suitable for mass valuation models and the institution can justify their use. Once the asset has remained on the balance sheet for three years, a full individual valuation becomes mandatory. After that point, AVMs and full valuations may be combined, provided that full valuations are carried out at least every three years. In estimating the fair value of foreclosed assets, institutions must assess whether a discount should be applied to the reference value due to specific conditions of the asset (e.g. location, physical condition) or market factors (e.g. reduced transaction volume or market activity). This assessment must be informed by the institution’s own sales experience and the average holding period of similar assets. A downward adjustment is also required when the full individual valuation report includes disclaimers or limiting conditions—particularly those arising from the inability to inspect the interior of the property—that have not been reflected in the reference value. In both cases—non-performing exposures and foreclosed assets or assets received in lieu of payment—the valuation company and the professional responsible for the valuation must be changed after two consecutive updates performed by the same company. This requirement applies regardless of the valuation method used (AVM or full individual valuation). |
| c) Review of property values and revaluation • For the calculation of average values in accordance with Article 229 (1)(e) CRR in the context of upward revisions of values, are there any guidelines from regulators or lenders addressing the data points to be used and the comparability of properties? Please indicate whether there are requirements from regulators or lenders for ‘sufficient data’ and ‘unequivocal increases of value’. |
In Spain, there are no regulatory guidelines, circulars, or valuation standards that address how to calculate average property values for the purpose of Article 229(1)(e) CRR. The concept of “average value” over a six- or eight-year period, as required by the regulation, is not developed or operationalised in any formal framework within the Spanish valuation system. It is important to note that in Spain, independent valuers — namely, valuation companies certified by Bank of Spain — carry out property valuations in accordance with the principle of prudence, as detailed in the responses to section III.a on Property Value. |
IV. VALUATION OF THE COVER POOL
| a) Are valuation rules for cover assets provided at national level in accordance with Article 6(5a) CBD? Are they provided by national covered bond legislation or by professional guidance/standards? | Yes. Valuation rules for cover assets are provided in Spain in accordance with Article 6(5a) of the CBD. These rules are established through national legislation, specifically via Royal Decree-Law 24/2021, which transposes Directive (EU) 2019/2162 into Spanish law. |
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| b) What valuation bases apply for the valuation of cover assets (Market Value, Mortgage Lending Value)? | In Spain, the valuation of cover assets is based on the Mortgage Lending Value, as established in Article 17 of Royal Decree-Law 24/2021. This requirement is further detailed in Bank of Spain’s Circular 4/2017, Annex IX, section D) “Guarantees and valuations”, which defines the Mortgage Lending Value as the reference value for real estate collateral. |
| c) In the case of Market Value valuations, are there any prudential or longer term/sustainable features of the property to be considered? If yes, to what extend? | In Spain, the reference value for cover assets is the Mortgage Lending Value, which already incorporates a prudent and long-term perspective. However, if Market Value is used in any context (e.g. for comparison), the regulation requires that speculative elements be excluded and that prudential criteria be applied. |
| d) How is the requirement that the valuation shall be carried out by a valuer who possesses the necessary qualifications, ability and experience transposed in your Member State (Article 6(5b) CBD)? Are there specific qualification requirements for valuers? |
In Spain, Bank of Spain’s Circular 4/2017, specifically Annex IX, section 2.2.1, establishes that valuations must be performed or supervised by certified valuation companies or services registered in the Official Registry of Bank of Spain. The qualifications, ability, and experience are addressed in Royal Decree 775/1997 and have already been covered in the response to question 2.2a (“qualified valuer”). |
| e) How is the requirement that the valuer shall be independent from the credit decision process transposed in your Member State (Article 6(5c) CBD)? |
Bank of Spain’s Circular 4/2017, specifically Annex IX, section 2.2.1, requires that valuations be performed or supervised by certified valuation companies or services registered in the Official Registry of Bank of Spain. These entities must be independent from the credit institution. According to the circular, independence is deemed fulfilled when the valuation company is not a related party to the institution, as defined in section 1 of rule 62, and complies with the requirements of the Mortgage Market Law and its implementing regulations. The specific requirement that the valuer be independent from the credit decision process is addressed in Royal Decree 775/1997 and has already been covered in the response to question 2.2b (“independence”). |
| f) Are there differences in valuation rules and/or qualification requirements with regard to the property type (residential vs. commercial properties) or to the loan amount? |
Yes. As detailed in response 1.2.g, the applicable valuation methods vary depending on the property type, in accordance with the provisions of Order ECO/805/2003. With regard to the loan amount or exposure, section 2.2.2 of Annex IX of Bank of Spain’s Circular 4/2017 introduces thresholds that determine the required frequency of valuation updates, the type of review (full appraisal or AVM), and the admissibility of certain methods. |
| g) Are there specific monitoring, review and revaluation requirements for cover pool assets at national level (see Article 129(3) CRR referring to Article 208 CRR)? |
Yes, Spain has specific monitoring, review and revaluation requirements for cover pool assets, as established in Bank of Spain’s Circular 4/2017, Annex IX, sections 2.2.2 and 2.2.3. Institutions must verify at least once a year whether there are signs of significant declines in the value of real estate collateral classified as performing or under special monitoring. If a material decline is detected, the valuation must be updated by certified and independent valuation companies or services. For exposures exceeding EUR 3 million or 5% of the institution’s own funds, valuations must be updated at least every three years, even in the absence of a decline. For non-performing exposures, the valuation must be updated at the time of classification and at least annually thereafter. Additionally, the valuation company or professional must be rotated after two consecutive valuations. |
| h) Do regulators of your Member State provide a waiver from the limitation of calculating average values for cover assets in case of upward revision of values (Article 129(3) second subpar. CRR)? | No, in Spain there is no waiver because the limitation referred to in Article 129(3) second subparagraph of the CRR is no longer present in the latest consolidated version of the Regulation. The current text does not include any restriction on taking into account upward revisions of property values in the calculation of the average value of cover assets. |
V. OTHER
REGULATORY HARMONISATION AND NATIONAL DIVERGENCES
| 1. What challenges does your Member State face in harmonising with EU regulations (e.g. legal, technical, market-related)? |
Spain does not face significant challenges in aligning its property valuation framework with EU regulations. On the contrary, Spain has been a pioneer in applying the concept of “property value” — understood as mortgage lending value — and the principle of prudence since 2003, through the national regulation Order ECO/805/2003. These principles are now being promoted across the EU, but have long been embedded in the Spanish system. The Spanish valuation framework is robust and well-established, built around certified valuation companies supervised by Bank of Spain. These companies combine strong technical, human, and technological capabilities with on-the-ground valuers who have deep knowledge of local markets. This structure ensures consistency, reliability, and prudence in valuations, and provides a high level of resilience and transparency. |
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DATA QUALITY, TRANSPARENCY AND COMPARABILITY
| a) What data sources are typically used by valuers in your Member State, and to what extent do they comply with Article 208(3a) of the CRR? | In Spain, the monitoring of property values is primarily carried out through periodic valuations commissioned by financial institutions and conducted by certified valuation companies supervised by Bank of Spain. These companies are responsible for applying prudent and traceable methodologies and for managing the data sources used in the process. Valuations are based on verified and consistent information, including internal databases built over years of market activity, physical inspections by qualified professionals, public records (such as the Land Registry and Cadastre), curated data from real estate portals, and direct observation of local market conditions. |
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| b) What measures have been taken to improve transparency and comparability of valuation data within your Member State? | The recent Order ECM/599/2025, which amends Order ECO/805/2003, has introduced significant improvements in the traceability, transparency, and comparability of data used in property valuations. Valuation companies are now required to document the sources of the relevant characteristics of the comparables used and to justify the traceability and consistency of those characteristics. They must also provide a reasoned explanation of the variables selected for the adjustment process, demonstrating that these are the key drivers of value, and describe the methodology and metrics used to determine the adjustment coefficients. If weights are assigned to comparables, the rationale and specific weighting must be explicitly justified. When a surface area other than the verified usable area is used in the adjustment process, a coefficient must be included to reflect the impact of the difference between the adopted surface and the usable area in both the subject property and the comparables. In addition, the source of each comparable must be disclosed, along with whether it was visited, and all relevant information must be provided — especially regarding the variables used in the adjustment process. The comparables must also include the cadastral reference, the relevant surface areas used in the valuation (at a minimum, the usable area or the constructed area excluding common elements, and the one adopted for valuation, if different), along with their respective sources. Finally, both the asking price and the adjusted price used in the valuation must be reported, including a description of the individualised analysis conducted to derive the latter from the former, explicitly detailing components such as negotiation discounts, brokerage commissions, and other relevant factors. |
| c) Is there a central database or platform for sharing valuation data in your Member State? | Certified valuation companies act as de facto data hubs. Each company maintains its own internal databases, built from years of market activity, field inspections, and verified transactions. These databases are not shared across entities or with external platforms, but they serve as the backbone of the valuation process, ensuring consistency, traceability, and technical depth. |
EDUCATION, TALENT PIPELINE AND PROFESSIONAL DEVELOPMENT
| a) What training programs or continuing education opportunities are available for property valuers in your Member State? | Please refer to 7(b) |
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| b) Is there collaboration between universities, professional bodies, and regulators to ensure a sustainable pipeline of qualified valuers? |
Yes, there is collaboration between universities, professional bodies, and regulators to ensure adequate and sustainable training for valuers in Spain. Above all, the Bank of Spain oversees compliance with Royal Decree 775/1997, which defines as qualified professionals those who are architects, technical architects, or building engineers when valuing urban properties in all cases, or plots and buildings intended for residential use; and engineers or technical engineers with the relevant specialization, depending on the nature of the asset being valued, in all other cases. By establishing these professional profiles, the Bank of Spain effectively requires a specialized university degree as a guarantee of technically qualified valuers. In addition, joint training initiatives are developed between sector associations and academic institutions. A notable example is the collaboration between AEV and the Fundación Escuela de Edificación (FEE) in the International Asset Valuation course, delivered by the Colegio de Aparejadores de Madrid, which incorporates international standards and specialized instruction. Technical seminars are also organized by entities such as IVSC, allowing professionals to stay up to date with global methodologies and regulations. Furthermore, various valuation companies collaborate with universities through specialized training programs and courses. Some of these entities have participated in academic activities with the Universitat Politècnica de València, which hosts a research center dedicated to valuation. |
| c) How does the EU regulatory environment influence the development and attractiveness of the valuation profession? |
In the case of Spain, the impact of the EU regulatory environment on the development and attractiveness of the valuation profession has been limited in structural terms, as Order ECO/805/2003 had already incorporated advanced technical criteria such as the concept of property value before its consolidation at the European level. However, new EU requirements related to sustainability, traceability, and transparency are introducing elements that may help the valuation practice evolve. These requirements are driving a shift toward greater process digitalization and the integration of climate and environmental criteria into valuation reports. This transformation demands not only the development of advanced technological solutions—which only valuation companies are well positioned to deliver—but also an expansion of technical and digital competencies among valuers. In this sense, the European regulatory framework is contributing to a redefinition of the professional profile of the valuer, making it more demanding and specialized. |
FUTURE TECHNOLOGICAL AND REGULATORY DIRECTIONS
| 1. What technological developments are expected to impact valuation processes in your Member State over the next five years? |
Over the next five years, Spain is expected to see significant technological developments in the valuation sector. These innovations will be integrated within a prudential and regulated framework, where independent valuation companies remain central to the process. AVMs and artificial intelligence are likely to play a growing role in supporting valuation processes, particularly in areas such as portfolio monitoring, market analysis, and anomaly detection. However, in Spain, these technologies are understood strictly as tools that assist — but do not replace — the professional judgment of the valuer. This approach is fully aligned with the position expressed in the July 2025 IVS paper Navigating the Rise of AI in Valuation, which emphasises that AVMs and AI must remain subordinate to human expertise and embedded within a structured, transparent valuation process. In the context of mortgage lending, AVMs are not used as standalone valuation methods, but rather as complementary instruments that enhance the efficiency and consistency of the valuer’s work, always under the principle of prudence. Following the recent update to Order ECO/805/2003, which incorporated environmental and climate-related criteria into valuation reports, it is expected that additional ESG dimensions — such as social and governance factors — will be progressively integrated. This will require new data sources, analytical tools, and reporting standards, all of which must be adapted to the prudential framework and supervised valuation model in Spain. Technological advances will also continue to improve document management, traceability, and interoperability between valuation companies, financial institutions, and regulators. Platforms that ensure secure data exchange, auditability, and process transparency will play a key role in strengthening the reliability and efficiency of the valuation ecosystem. |
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