Buying Guide · 11 min read

Renovation Costs for Resale Properties on the Costa Blanca: A Realistic Budget Guide (2026)

25 April 2026 · Hansson & Hertzell

Buying a resale property that needs work? We break down realistic renovation costs on the Costa Blanca — from cosmetic refresh to full gut renovation — so you can budget accurately before you buy.

# Renovation Costs for Resale Properties on the Costa Blanca: A Realistic Budget Guide (2026)

One of the most common mistakes buyers make when purchasing a resale property in Spain is underestimating renovation costs. The good news: renovation is generally cheaper in Spain than in the UK, Germany or the Netherlands. The bad news: it is not as cheap as many people assume, and Spanish building projects have their own quirks.

Here is a realistic guide based on what buyers are actually spending on the Costa Blanca in 2025–2026.

The Three Tiers of Renovation

Tier 1: Cosmetic Refresh (€5,000–€25,000) Painting, flooring replacement, new bathroom fixtures, kitchen units, lighting, and garden tidy-up. No structural work, no replumbing, no rewiring.

Best suited to: Properties from 2000 onwards in reasonable condition.

Tier 2: Mid-Level Renovation (€25,000–€80,000) Complete kitchen replacement, full bathroom renovation, new air conditioning system, partial replumbing, window replacement, partial rewiring, garden redesign with pool maintenance or upgrade.

Best suited to: Properties from the 1980s–2000s that are structurally sound but dated.

Tier 3: Full Renovation or Gut Renovation (€80,000–€200,000+) Complete structural upgrade: new roof, full replumbing, full rewiring to current code, new windows, new kitchen, new bathrooms, new flooring throughout, insulation, air conditioning throughout, pool renovation, and potentially reconfiguration of spaces.

Best suited to: Older fincas, town houses in historic centres, or properties that have been poorly maintained.

Specific Cost Benchmarks (Costa Blanca, 2025–2026)

| Item | Low | High | |---|---|---| | Kitchen (supply + fit, mid-range) | €8,000 | €25,000 | | Bathroom (supply + fit, per room) | €5,000 | €15,000 | | Full rewiring (100m² property) | €8,000 | €18,000 | | Full replumbing | €6,000 | €15,000 | | New roof (flat, 100m²) | €10,000 | €25,000 | | New roof (pitched, 100m²) | €15,000 | €35,000 | | Air conditioning (multi-split, 3 units) | €4,000 | €9,000 | | Swimming pool renovation | €8,000 | €30,000 | | New pool construction | €25,000 | €60,000 | | Flooring (per m², incl. fitting) | €25 | €70 | | Window replacement (per unit, PVC/aluminium) | €500 | €1,500 | | Garden landscaping | €5,000 | €30,000 | | Architect fees (if required) | 6% of works | 10% of works | | Licence fees (obra mayor) | 2% of works | 5% of works |

When Do You Need Planning Permission in Spain?

Minor interior works (painting, tiling, furniture) require no permits. However, anything structural or affecting the building's exterior typically requires a licence:

• Licencia de obras menores (minor works): For smaller interventions — cheaper, faster (2–4 weeks)
• Licencia de obras mayores (major works): For structural changes, extensions, new builds — requires architect drawings and can take 2–6 months

Doing significant work without the correct licence creates legal issues when you come to sell. Always check with your solicitor.

The Hidden Costs

Beyond the renovation itself, factor in:

• IVA on materials and labour: 10% VAT on construction services in Spain (some materials at 21%)
• Architect and technical architect (aparejador): Required for obras mayores
• Rubbish removal (escombros): Often underestimated — €500–2,000+ for a full renovation
• Temporary accommodation: If you are renovating before moving in
• Furniture and appliances: Often forgotten in renovation budgets
• Contingency (15–20%): Spanish renovation projects routinely encounter surprises, especially in older properties — hidden damp, asbestos in older roofs, non-compliant electrics

Finding Reliable Builders

This is where many buyers go wrong. Recommendations from other expats and estate agents are the most reliable route. Avoid:

• Anyone asking for more than 30% upfront (30% is standard; 30% mid-project; 40% on completion is a typical structure)
• Anyone unwilling to provide a detailed written quote
• Any builder who cannot provide references from completed projects you can visit

Ask for autónomo number or company CIF — this verifies they are registered and paying tax. Unregistered workers offer no legal recourse if things go wrong.

Return on Investment

A well-chosen, well-renovated resale property on the Costa Blanca can deliver excellent returns — both as a holiday home and as a rental investment. Properties renovated to a high standard in sought-after areas such as Moraira, Jávea or Altea consistently achieve:

• 15–30% uplift in capital value over purchase price + renovation cost
• Rental yields of 6–9% on gross income (tourist rental)

The key is buying a property with good bones in a good location — not a fundamentally flawed property in a poor location that no amount of renovation will rescue.

How Hansson & Hertzell Can Help

We regularly help buyers identify resale properties with strong renovation potential. We can walk through a property with you and give an honest assessment of likely renovation scope — and connect you with trusted local builders and architects who have worked with expat buyers.

Contact us to discuss what you are looking for.

Frequently Asked Questions

How do I get a reliable renovation quote in Spain?

Get at least three written quotes from registered builders (autónomos or companies with CIF). Ask for a detailed itemised breakdown — not just a lump sum. Visit at least one of their completed projects before committing. A quote that is 30–40% below the others usually signals missing items, unregistered labour, or low-quality materials. Lowest price is rarely the right choice for renovation work.

Do I need planning permission to renovate a property in Spain?

Minor interior works (repainting, new kitchen units, replacing floor tiles, minor plumbing) require no permits. Anything structural, affecting the building's exterior, or changing the use of a space requires a licence. Smaller interventions: licencia de obras menores (weeks). Structural changes or extensions: licencia de obras mayores (requires architect drawings, can take 2–6 months). Ask your lawyer before starting any significant work.

What is the most cost-effective renovation on the Costa Blanca?

Kitchen renovation delivers the highest return on investment. A mid-range kitchen replacement (supply and fit, new units, worktops, and appliances) for €10,000–18,000 typically adds €15,000–25,000 to the market value of a property in good condition. Bathroom renovations and air conditioning upgrades also have strong ROI. Structural or cosmetic exterior works tend to have lower ROI but improve rentability.

Is renovation cheaper in Spain than in the UK or Germany?

Generally yes, though the gap has narrowed since 2021. Spanish labour rates are lower (tiler: €15–25/hour versus £40–60 in London). Materials pricing for tiles, sanitary ware, and kitchen units from suppliers like Leroy Merlin and Bricomart is very competitive. Complex specialist work (electrical, plumbing) has converged more toward European pricing. For a full renovation, expect 20–35% lower costs than UK equivalents.

How much contingency should I budget for a Costa Blanca renovation?

Minimum 15%, ideally 20–25%. Spanish older properties frequently reveal hidden issues: concealed damp in thick walls, non-compliant electrical installations (pre-1980s wiring particularly), asbestos in flat roof membranes (common in properties built before 1990), and ground floor moisture. These discoveries are not uncommon — budget for them from the start.

How do I verify a Spanish builder is legitimate?

Check for: an autónomo number (self-employed tax registration) or company CIF number. Look them up in the Registro Mercantil if a company. Ask for their Seguro de Responsabilidad Civil (liability insurance). Legitimate builders issue official invoices with IVA. Requests for large cash payments with no invoice are a serious warning sign — you lose legal protection if something goes wrong.

What IVA (VAT) applies to renovation work in Spain?

Construction services for renovation of existing residential properties attract 10% IVA (reduced rate). New construction and commercial properties attract 21%. Some materials purchased separately may attract 21%. Your builder should apply the correct rate on the invoice — if they only offer cash-no-invoice, you are responsible for undeclared tax if discovered, and you have no legal redress.

Can I supervise the renovation remotely from the UK or Scandinavia?

It is possible but challenging. Key success factors: appoint a local project manager or architect to oversee daily progress; use a payment structure tied to verifiable milestones (never more than 30% upfront); set up a camera or video calls for weekly site walkthroughs; have a local contact who can visit the site weekly. Remote management without oversight is high-risk and a common source of problems.

What is the payment structure for Spanish builders?

Standard structure: 30% deposit at start, 30% at a defined mid-point milestone, 40% on completion and handover. Be wary of any builder asking for more than 40% upfront — this is a financial red flag. For large projects (€100,000+), consider using an architect to certify work milestones before releasing payments. Always document payments with bank transfers, not cash.

How long does a typical renovation take on the Costa Blanca?

Cosmetic refresh (painting, flooring, bathroom fixtures): 4–8 weeks. Mid-level renovation (kitchen, bathrooms, AC, windows): 2–4 months. Full renovation: 4–8 months. Spanish builders are generally slower than German or Scandinavian equivalents — build delays of 20–30% beyond quoted timelines are common. Build realistic timelines before committing to rental start dates or move-in dates.

Does renovation work need to be declared for tax purposes?

If you sell the property within a number of years, you can deduct declared renovation costs from your capital gains liability. This requires proper invoices from registered contractors. Undeclared cash payments cannot be deducted. For properties used for tourist rental, ongoing maintenance and improvement costs are deductible against rental income (for EU residents). Keep all receipts permanently.

Are there any grants available for renovation or energy efficiency in Spain?

Spain has government programmes (Plan de Rehabilitación) offering grants and low-interest loans for energy efficiency improvements — insulation, heat pumps, solar panels, and window replacement. These are primarily targeted at principal residences and Spanish residents. Non-resident holiday homeowners generally do not qualify, though some local authority schemes may apply. Ask your gestoría for current information.

What energy improvements give the best return on the Costa Blanca?

Air conditioning replacement or installation (€4,000–9,000 for a quality multi-split system) delivers immediate quality-of-life and rental income improvement. Solar panels reduce electricity bills 40–70% and increase capital value. Double or triple-glazed aluminium windows improve comfort and reduce noise — important in tourist areas. These three investments typically pay back in 5–10 years through reduced running costs and higher rent.

Should I renovate before renting, or rent as-is and renovate later?

For tourist rental: the condition of the property significantly impacts nightly rates and review scores. An unrenovated property in a good location will rent but at a lower rate and generate negative reviews that compound over time. A well-renovated property in the same location commands 20–40% higher nightly rates. The financial case for renovating before renting is usually strong if the improvements are targeted at the right things.

How does Hansson & Hertzell help with renovation planning for buyers?

We have long-standing relationships with trusted local builders, architects, and project managers across the Costa Blanca. When you buy through us, we are happy to walk through a property with you and give an honest assessment of renovation scope and likely costs — before you commit to the purchase. This is part of our service as a specialist resale agency. Contact us to discuss.