Note
Renovating a house in Spain: how to budget the cost
Quick answer
We publish no average cost per square metre, because we found no official figure and the range is wide. Budget from written quotes for a defined scope, add permits, fees and a reserve, and check whether reduced VAT of 10% applies to the works.
Applies toBuyers who need a realistic budget for renovating a Spanish property.
On this page: 11 sections
§ 1Why no average
We looked for an official average cost of renovation in Spain and found none that we could cite. Prices depend on the building, the region, the finishes, the access and the builder, and published averages are often marketing. Your own budget is built from quotes, line by line. It belongs to the chapter in the rules on renovation projects.
§ 2Define the scope
Write a list of works room by room, with finishes, and have an architect or technician convert it into a specification. Without a specification, quotes cannot be compared. Ask at least two firms to price the same specification, and ask for the price, the schedule and the payment stages in writing.
§ 3What the budget includes
The works are only part of the cost. Add the architect and the technician, the permit fees and local taxes, utility connections, waste removal, insurance, furniture, and the costs of the purchase itself. Renovation permits explained explains the permits for renovation.
§ 4VAT on works
The tax agency states that renovation or repair works on dwellings can be taxed at 10% instead of the general rate of 21%, if the conditions are met. The building must be mainly housing and finished at least two years before the works begin, the client must be an individual who uses it personally, and the contractor’s materials must not exceed 40% of the taxable base. A decree-law of October 2026, awaiting validation, is reported to extend the reduced rate to works on homes let as habitual residences from December; we have not read the operative text. Confirm with your adviser.
§ 5Reserve
Old buildings hide problems behind plaster and under floors. Keep a reserve in money and in time. A budget with no reserve fails at the first surprise.
§ 6Paying
Pay by stages tied to progress, never in full in advance. Pay by bank transfer and keep the invoices, because you need them for VAT and for the registry. Ask the builder to state VAT separately on each invoice.
§ 7Quotes
Compare quotes by scope, not by total alone. A low figure may leave out items. Ask for the builder’s insurance, references and the licence or registration that applies.
§ 8Financing
Banks lend less on properties that need work, and the mortgages section explains the loan. Ask your lender how it handles the release of funds during works.
§ 9Check
Review the budget with your architect before you sign. Update it as quotes change, and keep the file.
§ 10Cash flow
Works are paid in stages, so plan the cash flow before you start. Know when each payment falls due, and keep funds in the right currency. The transfers chapter in the mortgages and money section explains how to move money from abroad.
§ 11More on this topic
More on restoring a ruin explains the steps of restoring a ruin.
FAQRelated questions
What does a renovation cost per square metre?
We give no figure. It depends on the building, the area, the finishes and the builder, and no official average exists that we found. Ask several firms to price the same detailed scope in writing.
What else should I budget for?
The architect, the technician, permits and local taxes, utilities connections, insurance, furniture and a reserve for surprises. Old buildings hide problems, so keep a reserve and a time margin too.
Do I pay reduced VAT on works?
Sometimes. The tax agency lists conditions, for example a dwelling finished at least two years before, an individual client and limits on materials. Check with your adviser before the contract is signed.
Sources
- Agencia Tributaria: ¿Qué tipo se aplica a las obras en viviendas? Obras de renovación o reparación (official source, opens in a new window), Reduced VAT rate for renovation and repair of dwellingsLast checked 18 October 2026
Tax note. Rates depend on the region, the type of property and the buyer, and they change. Figures here are dated and sourced; examples are illustrative and show their assumptions. Confirm yours with the regional tax agency or a tax adviser.