Property refurbishment on the Costa del Sol follows broadly the same principles as in the UK but differs in key areas: Spanish building regulations, permit requirements, material suppliers and contractor structure. The main practical differences are the permit system (licencia de obra), IVA (VAT at 10–21%), and the prevalence of informal operators in a market that attracts high volumes of foreign buyers.
How property refurbishment works in Spain
Property refurbishment — the renovation of an existing property to improve its condition, functionality or finish — works similarly in Spain to the UK. You engage a contractor, agree a scope, sign a contract and pay in stages as work progresses. The legal framework, however, is Spanish: permits are issued by the local ayuntamiento (council), disputes are subject to Spanish law, and the contractor must be registered with the Spanish tax authority.
On the Costa del Sol, the refurbishment market is particularly active due to the high volume of foreign buyers purchasing older properties to renovate before moving in or letting. For a full breakdown of what's involved in managing this type of project, see our guide to renovations for expats on the Costa del Sol.
Key differences from the UK
IVA (VAT): In Spain, renovation work is generally subject to IVA at 10% (reduced rate for habitual residence) or 21% (standard rate for second homes and commercial properties). Ask your contractor to clarify which rate applies and ensure it is itemised in the quote.
Permit system: Major works require a licencia de obra mayor, which must be approved by the local council before work starts. This can take 2–4 months in Marbella and other Costa del Sol municipalities. Cosmetic works are covered by a simpler declaración responsable or licencia de obra menor — faster, but still requires submission.
Architect requirement: Structural work in Spain requires the involvement of a registered architect. Your contractor should be able to manage this — but confirm it explicitly, as failing to obtain the correct permits can make it difficult to sell the property later.
Permits and planning: what you need to know
Before starting any refurbishment project on the Costa del Sol, establish what type of permit is required for your planned works. The classifications are broadly: cosmetic works (no structural changes, painting, flooring, kitchen and bathroom renovation within existing positions) — covered by obra menor; structural works (wall removal, new openings, roof changes) — require obra mayor and architect sign-off.
A contractor who tells you no permit is needed for structural work should be treated with extreme caution. Building without the correct permit creates legal complications that are expensive to resolve and may affect your ability to sell.
Typical costs on the Costa del Sol
As a general guide for 2026, refurbishment costs on the Costa del Sol range from approximately €400 to €1,200 per square metre, depending on scope and specification. A cosmetic refurbishment of a 100 m² apartment with new kitchen, bathroom, flooring and painting typically costs €40,000 – €70,000. A full structural and cosmetic refurbishment of the same property costs €70,000 – €120,000. See our full full renovation Costa del Sol guide for a detailed cost breakdown.
Finding a contractor who communicates in English
One of the most common frustrations for UK buyers on the Costa del Sol is finding a contractor who can communicate clearly and consistently in English throughout the project — not just at the quoting stage. The ability to explain problems, discuss solutions and provide progress updates in English is a sign of a company experienced in working with non-Spanish clients.
Ask specifically: who will be your point of contact throughout the project, and do they speak English? Is your quote prepared in English? Will progress updates be in English? These are reasonable questions for any company with genuine experience in this market.
Common mistakes UK buyers make
- Accepting the first quote without comparison. Get at least 2–3 written quotes from registered companies.
- Prioritising cost over communication. The cheapest contractor for a remote refurbishment is rarely the best value once communication failures and delays are factored in.
- Not budgeting for permits and architect fees. These add 5–10% to the project cost and cannot be avoided for structural works.
- Starting work before permits are issued. This creates legal and resale complications that can be very costly to resolve.
- Choosing a contractor who uses unknown subcontractors. This makes quality control and accountability much harder, particularly when you're not on site.