Buying a Used Property in Spain – Renovate and Earn Profitable Returns
Purchasing a used property on the Costa Blanca offers a great opportunity for foreign buyers to enter the Spanish real estate market. While new builds are often more expensive, existing homes provide excellent value: they are cheaper, can be renovated to your taste, and then rented out for holiday lettings or long-term rentals to generate income.
With a well-planned renovation and rental strategy, investors can benefit from both capital appreciation and steady income. The key is choosing the right location, assessing the property’s condition, renovating professionally, and ensuring legal compliance for rental activities.
Why is buying a used property on the Costa Blanca attractive?
The Costa Blanca remains one of Spain’s most popular areas for foreign property buyers. Towns such as Dénia, Jávea, Calpe, Altea, and Moraira offer an excellent climate and year-round rental demand. Buying a resale home means a lower purchase price and more flexibility for improvements and value growth.
- Lower entry costs: Up to 20–40% cheaper than new developments.
- Customization: Tailor the design and finishes to your style.
- Strong ROI: Benefit from both value appreciation and rental yield.
- Prime locations: Many resales are in established coastal neighborhoods.
Renovation and modernization – adding real value
A smart renovation can significantly increase the market value of your property. It’s not only about visual upgrades but also about improving the technical and energy standards. Working with local experts ensures quality and compliance with Spanish building regulations.
- Interior & exterior works: Kitchens, bathrooms, façades, and terraces.
- Technical upgrades: Electrical, plumbing, and air-conditioning systems.
- Energy efficiency: Insulation, solar panels, and modern installations.
- Building permits: Required for major refurbishment works.
Holiday rental or long-term rental – which is better?
Once the renovation is complete, owners can choose between holiday lettings or long-term rentals. Both options can be profitable, depending on location and strategy.
Holiday rental
- High returns: Peak season can bring excellent weekly rates.
- Flexibility: Combine income with personal use during off-season.
- Tourism license: A VT registration number is required in the Valencian Community.
Long-term rental
- Stable income: Predictable monthly rent and lower turnover.
- Less maintenance: Fewer guest changes and administration.
- Tax efficiency: Depending on residence status and contract type.
Legal and tax aspects to consider
When buying a resale property, legal due diligence is crucial. Verify ownership, licenses, and structural legality before signing. Taxes and documentation differ between use types (personal, holiday, or long-term rental).
- Transfer tax (ITP): Around 10% in the Valencian region.
- Energy certificate (CEE): Required for selling or renting.
- Tourism license: Obligatory for short-term rentals.
- Income tax: Rental income is taxable in Spain, even for non-residents.
Conclusion: Buy smart, renovate well, and rent profitably
Buying a used property on the Costa Blanca can be a rewarding investment. With careful selection, a solid renovation, and a clear rental strategy, owners can achieve excellent returns and long-term value growth – all while enjoying one of Europe’s most desirable coastal regions.
Notice
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