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Foreigners can purchase and renovate properties in Spain with minimal legal restrictions, though significant changes in 2025 have altered the landscape for non-EU buyers.
The Spanish property renovation market offers opportunities but requires careful navigation of permits, costs, and regulations that vary significantly between regions and property types.
If you want to go deeper, you can check our pack of documents related to the real estate market in Spain, based on reliable facts and data, not opinions or rumors.
As of September 2025, foreigners can buy and renovate Spanish properties but must obtain an NIE number and navigate new proposed taxes for non-EU buyers.
Total renovation costs range from €400-€1,500+ per square meter, with complete project timelines spanning 6-18 months from purchase to completion.
| Aspect | Requirements/Costs | Timeline |
|---|---|---|
| Purchase Costs | 10-15% above property price (taxes, fees, legal) | 2-3 months |
| Building Permits | Major renovations require municipal approval | 1-6 months |
| Renovation Costs | Basic: €400-700/sqm, Luxury: €1,500+/sqm | 3-10 months |
| Professional Services | Architect/contractor sourcing essential | 1-2 months booking |
| Insurance | Property + renovation coverage required | Before work starts |
| Utilities | €100-500 per service reconnection | Several weeks |
| Total Project | Budget 20-30% above initial estimates | 6-18 months complete |
Do you need a visa or residency permit to buy and renovate property in Spain as a foreigner?
You do not need any visa or residency permit to legally buy and renovate property in Spain as a foreigner.
However, you must obtain an NIE (Foreigner Identification Number) before any real estate transaction, regardless of your nationality or residency status. Property ownership alone does not grant you residency rights in Spain.
As of April 2025, the Spanish Golden Visa program for property investors spending over €500,000 has been discontinued for new applicants. If you're a non-EU citizen seeking residency, you now have alternative options like the Non-Lucrative Visa for retirees (requiring approximately €2,400+ monthly income) or the Digital Nomad Visa for remote workers (requiring approximately €2,600+ monthly income, valid for up to 5 years).
While residency is not mandatory for property purchase, obtaining it can help you avoid proposed punitive taxes that may affect non-EU, non-resident buyers in the future.
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Are there restrictions on foreigners buying property in different Spanish regions?
EU and EEA citizens face no restrictions when buying property in any Spanish region.
Non-EU citizens currently have no regional purchasing restrictions, though they may face proposed new taxation measures. As of September 2025, the Spanish government is considering implementing a 100% additional tax on non-EU, non-resident property buyers, effectively doubling the purchase price, but this legislation remains under debate and is not yet in force.
Regional variations exist primarily in transfer tax rates and some local administrative procedures, but no Spanish region has outright bans on foreign property ownership. Transfer tax rates can vary significantly between autonomous communities, ranging from 6% to 13% for resale properties.
Coastal areas and major cities may have additional local regulations regarding short-term rentals or tourist accommodations, but these don't prevent property purchase or renovation by foreigners.
What are the total costs for purchasing a house in Spain including taxes and fees?
You should budget for an additional 10-15% above the property purchase price to cover all taxes, fees, and legal costs.
| Cost Type | Amount | Notes |
|---|---|---|
| Property Transfer Tax (ITP) - Resale | 6-13% | Valencia: 10%, varies by region |
| VAT - New Construction | 10% + 1.5% Stamp Duty | Only for new builds |
| Notary Fees | €1,200-€2,000 | Fixed scale based on property value |
| Land Registry | €400-€800 | Property registration costs |
| Legal Fees | 1-2% (min €2,000) | Essential for foreign buyers |
| Annual Property Tax (IBI) | 0.4-1.2% annually | Prorated on sale date |
What building permits are required for renovations and how long do approvals take?
Major renovations (obra mayor) require a municipal building permit, while minor works need municipal notification.
Approval timelines vary significantly by municipality: 1-6 months for major permits, several weeks for simple repairs. Properties in historical zones typically face longer approval periods due to additional heritage review requirements.
You must submit architectural plans, technical specifications, proof of ownership, and payment of municipal fees. The complexity of your renovation project and local administrative efficiency directly impact processing times.
Coastal municipalities and major cities often have more streamlined processes but higher volumes, while rural areas may be slower but less bureaucratic. Historical city centers like Toledo or Salamanca can extend permit approvals by several additional months.
What are renovation costs per square meter in Spain by quality level?
Renovation costs in Spain vary significantly based on finish quality, location, and building age.
Basic renovations cost €400-€700 per square meter and include standard materials, basic fixtures, and essential updates to meet current building codes. Mid-range renovations cost €700-€1,200 per square meter, featuring quality materials, modern appliances, and contemporary design elements.
Luxury renovations exceed €1,500 per square meter, especially in major cities like Madrid and Barcelona or tourist coastal areas like Marbella and Ibiza. These include premium materials, high-end appliances, custom work, and designer finishes.
Older properties often require higher investment due to unforeseen structural, plumbing, or electrical issues. Coastal properties may have additional costs related to humidity damage and salt corrosion repairs.
Budget an additional 20-30% above initial estimates for unexpected costs, which are common in Spanish property renovations.
How do you find reliable architects, contractors, and project managers in Spain?
Source professionals through local recommendations, official professional associations, and established online portals.
Check architects through COAM (Madrid), COAC (Catalonia), or regional architectural colleges. Verify licenses, request recent project references, and confirm professional liability insurance coverage, which is legally required.
The sourcing and booking process typically takes 1-2 months, with availability varying seasonally. Summer months see higher demand and longer wait times, particularly in tourist areas.
Interview multiple candidates, visit recent projects if possible, and request detailed written proposals. Avoid contractors who demand large upfront payments or lack proper business registration.
Establish clear contracts with milestone payments, completion timelines, and penalty clauses for delays. Professional project managers can coordinate multiple trades and navigate local regulations more efficiently.
What rules apply to renovating historical buildings or properties in protected areas?
Historical buildings and protected areas require special permits with strict renovation limitations enforced by heritage departments.
These restrictions typically include façade preservation requirements, approved traditional materials only, no major structural changes, and maintenance of original architectural features. Local heritage departments must approve all renovation plans, which can add several months to the approval process.
Protected areas often encompass entire historic city centers, where even interior renovations may require heritage approval. UNESCO World Heritage sites like Santiago de Compostela or historic quarters in Seville have particularly stringent requirements.
Renovation costs in protected areas are generally 20-40% higher due to specialized materials, traditional construction techniques, and longer approval processes. Some modifications may be completely prohibited regardless of cost.
What are common problems with older Spanish houses and their typical repair costs?
Older Spanish houses frequently suffer from structural instability, outdated systems, and environmental damage that can significantly impact renovation budgets.
Structural issues affecting foundations and walls can cost €10,000-€50,000+ to repair, depending on severity and building size. Outdated plumbing systems often require complete replacement costing €4,000-€15,000, while electrical system updates range from €4,000-€15,000.
Common issues include damp problems from poor waterproofing, asbestos in buildings constructed before 1980, and termite damage in wooden structures. These problems require specialist remediation and can add unexpected costs of €5,000-€20,000+ to renovation projects.
Commission a thorough pre-purchase structural survey to identify potential problems before buying. This survey typically costs €500-€1,500 but can save thousands in unexpected renovation costs.
Properties in coastal areas face additional challenges from salt corrosion and humidity damage, while mountain properties may have issues with outdated heating systems and insulation.
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How does property insurance work during renovations in Spain?
Property insurance must be in place before renovation work begins and should cover fire, theft, and liability during construction.
Standard homeowner insurance typically doesn't cover renovation risks, so you need specific renovation insurance covering damage to the property, theft of materials and equipment, and third-party injuries on the construction site. This coverage usually costs 0.2-0.5% of the renovation budget.
Your architect and contractor must hold civil liability insurance by Spanish law. Verify their coverage before signing contracts and ensure policies remain valid throughout the project duration.
Notify your insurance company before starting work, as some policies may be void during major renovations. Document the property's condition before and after work with photographs and professional assessments.
Consider additional coverage for valuable materials stored on-site, as construction theft is common in Spain, particularly in urban areas and tourist regions.
How do you handle utilities during renovations and what are the costs?
Utility reconnection or upgrades for water, electricity, and gas each cost €100-€500, depending on infrastructure requirements and distance from service points.
Reconnection and upgrade processes can take several weeks, especially if new infrastructure work is required. Coordinate utility changes with your contractors early in the renovation process to avoid delays.
Older properties may require complete utility infrastructure replacement, particularly electrical systems that don't meet current safety standards. Gas connections in rural areas may not be available, requiring alternative heating solutions.
Temporary utility connections during construction may incur additional monthly fees of €50-€150 per service. Some contractors prefer working with temporary connections to avoid damage to new permanent installations.
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What taxes apply if you renovate and sell the property later?
Capital gains tax (Impuesto sobre la Renta de las Personas Físicas, IRPF) applies when selling renovated properties at rates of 19-23%, depending on the gain amount and your tax residency status.
Renovation costs can be deductible from capital gains calculations if you maintain valid invoices and receipts for all work performed. This includes materials, labor, permits, and professional services directly related to property improvement.
Non-resident sellers face additional withholding taxes of 3% of the sale price, which can be offset against final tax calculations. Regional and local taxes may also apply, varying by autonomous community and municipality.
If you sell within three years of purchase, you may qualify for reinvestment exemptions if buying another primary residence. Consult a Spanish tax advisor for personalized advice, as tax implications vary significantly based on residency status and property use.
What is the realistic total timeline from purchase to completed renovation?
The complete process from property purchase to finished renovation typically takes 6-18 months, depending on project scope and permit complexity.
Property purchase requires 2-3 months for legal processes, surveys, and closing procedures. Building permit approval adds 1-6 months, with longer periods for protected properties or complex renovations in historic areas.
Actual renovation work spans 3-10 months based on project size and complexity. Basic updates may complete in 3-4 months, while full renovations with structural changes require 6-10 months or longer.
Historic properties and protected areas can extend total timelines to 18-24 months due to heritage approval requirements and specialized construction techniques. Factor in seasonal variations, as many Spanish construction workers take extended breaks in August.
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Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Renovating property in Spain as a foreigner requires careful planning, proper documentation, and realistic budget expectations for both purchase and renovation costs.
Success depends on understanding local regulations, securing proper permits, and working with qualified professionals who can navigate Spanish construction and heritage requirements.
Sources
- Spain Easy - Buying a House in Spain in 2025
- InvestRopa - Spain Real Estate for Foreigners
- Luxton Legal - Cost to Buy Property in Spain 2025
- Grupo Country Homes - Spain Visas 2025 Guide
- Hansson Hertzell - Spain Property Tax Guide 2025
- Move to Malaga Spain - Buying Property Guide 2025
- Estrellas Properties - Property Buying Expenses Spain 2025
- Lawants - Golden Visa in Spain