Home renovation in Spain

Buying a new home in Spain is an exciting milestone, but it often comes with a familiar challenge: where to begin. Many new property owners quickly realise that turning a house into a comfortable, compliant, and well-maintained home involves more than choosing paint colours or furniture. From understanding local building rules to navigating maintenance responsibilities, the process can feel overwhelming without clear, reliable guidance tailored to Spain’s legal and practical realities.

This article offers a comprehensive guide to help you move forward with confidence. You’ll discover the financing and loan solutions available to support your project, learn about the legal obligations tied to property maintenance, and explore your renovation and decoration options. Whether you’re planning a small update or a full-scale renovation, this overview will help you make informed decisions every step of the way.

How can you finance a home improvement project in Spain?

Financing a home improvement project in Spain can take many forms depending on your budget, timeline, and whether you want a simple personal loan or something tied to your property’s value. Homeowners here can choose from personal loans, renovation-specific credit lines, mortgages that include renovation costs, or public support mechanisms if your works include energy efficiency upgrades.

The main financing options available to Spanish homeowners include:

• Personal loans: Usually unsecured loans that are quick to arrange and suitable for small to medium renovations.

• Renovation-specific loans: Loans specifically marketed for home works with clear repayment schedules.

• Renovation-included mortgage: A larger long-term loan secured on your property that can include both purchase and renovation costs.

• Public programs: Support tools that can provide subsidised financing for energy efficiency or certain renovation works.

• Homeowners association or building-wide financing: For apartment blocks or community buildings where all owners contribute to common works.

Financing through personal loans

Personal loans are typically unsecured credit that you can use for almost any purpose, including residential renovations. They’re usually simpler to apply for, don’t require property as collateral, and have fixed interest rates with a clear repayment schedule. However, they often carry higher interest rates than secured options and are best for smaller projects.

Here are some trusted banks offering personal loans:

• Banco Santander;

• Bankinter;

• CaixaBank.

Financing through renovation-specific loans

These are loans specifically marketed for renovation or home improvement projects and often have terms tailored to work budgets. They can offer clear, fixed repayment schedules and amounts tied to the cost of your planned works.

See some trusted lenders with renovation loans:

• ABANCA;

• BBVA;

• Revolut.

Financing through renovation-included mortgages

A renovation-included mortgage lets you finance the purchase and renovation of a property in one package, often with more competitive interest rates since the loan is secured on the home itself. This option works well if you’re buying a property that needs work or want a larger sum with a long repayment horizon. You can typically discuss this directly with your bank when applying for a mortgage, or work with a mortgage advisor who can guide you through the process.

Financing through public programmes

Spain offers public support for home renovations mainly through NextGenerationEU funds, which focus on energy-efficient upgrades such as insulation, window replacement, and roof improvements. These programmes are managed by each autonomous community, so eligibility and application processes vary by region. Additionally, many local authorities offer their own schemes, and certain energy efficiency works may qualify for income tax (IRPF) deductions.

Financing through homeowners associations or community loans

If you live in a multi-unit building, collective works (like façade repairs or shared roof insulation) are sometimes financed via tailored loans or sustainability credits through your homeowners association. These are usually structured so that all owners pay their share over time.

Fund your Spain renovation from abroad with Wise

If you’re financing a home renovation in Spain from another country, international money transfers are often necessary. Bank transfers can sometimes involve higher fees and less competitive exchange rates compared to specialist transfer services, making renovation costs higher than expected. Using an international money transfer solution can save both time and money, ensuring your funds arrive safely and efficiently.

Wise offers sending money abroad services, which can be used for renovation expenses. It offers mid-market exchange rates, transparent low fees, and the ability to hold a multi-currency account, allowing you to manage funds in EUR and 40+ other currencies. Wise may help reduce transfer costs compared to some bank transfers.

What can you use a renovation loan for?

A renovation loan is designed to help fund improvements that add value, functionality, or habitability to a property. In most cases, lenders expect the money to be used for permanent, fixed changes to the home rather than for movable items or purely cosmetic purchases. This means the focus is usually on construction, refurbishment, and structural or systems-related work.

Typical permitted uses often include a wide range of interior and exterior renovation projects, such as:

• Building extensions or adding new rooms;

• Converting existing areas (for example, turning a loft or basement into a living space);

• Refitting key rooms like kitchens and bathrooms;

• Replacing fixed items such as doors, windows, flooring, or built-in wardrobes;

• Updating plumbing, electrical systems, heating, or insulation;

• Decoration costs, including plastering, painting, and tiling;

• Garden and outdoor work, such as terraces, fences, driveways, or permanent landscaping features.

What is usually not allowed are non-permanent or purely personal items. This can include furniture, appliances that are not built in, electronics, or general household goods. Lenders may also exclude luxury features that do not clearly add value to the property, or any work that is not properly licensed or documented.

How much can you borrow?

The amount you can borrow with a renovation loan typically depends on a combination of factors, including your personal financial situation. Lenders usually set both a minimum threshold and a maximum limit, which can vary widely between banks. For example, ABANCA lends up to 60 000 EUR.

In most cases, the total borrowing is capped at a percentage of the property’s value (often expressed as a loan-to-value ratio). Factors such as your income, existing debts, credit history, and the detailed cost estimate for the renovation work will all influence the final approved amount. 

The steps necessary to arrange a renovation loan

Here are the steps usually necessary to arrange a property renovation loan in Spain:

Step 1: Speak to a mortgage adviser or bank

Start by discussing your plans with a mortgage advisor or directly with your bank. They can explain what renovation loan products are available, how they fit with your main mortgage (if that’s the case), and what criteria you need to meet.

Step 2: Specify your renovation plans and costs

Prepare a clear outline of the work you want to carry out, supported by quotes or estimates from contractors or home renovation companies. This helps the lender assess how much you need and whether the project is likely to increase the property’s value.

Step 3: Activate your renovation loan

Once approved, the loan is formally set up, either as a separate facility or as part of your mortgage. The funds may be released in stages rather than all at once, depending on the lender’s policy.

Step 4: Complete renovation work

Carry out the planned construction or refurbishment according to the agreed scope. It is important to keep all invoices, contracts, and proof of payment as the bank may require these later.

Step 5: Submit bills and documentation

After the work is completed (or at each stage, if funds are released in phases), submit the relevant bills and supporting documents to the lender. This confirms that the money has been used for the approved purposes.

For expats buying property in Spain, it is especially important to think ahead about how you will finance any renovation work. Speaking early with a mortgage adviser who understands both local regulations and expat lending criteria can help you avoid delays and ensure your renovation plans are properly built into your overall property budget.

What government subsidies can I use for a renovation in Spain?

Spain offers several forms of public support to help homeowners reduce the cost of renovation projects, particularly those focused on improving energy efficiency and sustainability. These programmes are managed at both national and regional levels, so availability and eligibility can vary depending on where your property is located.

• Energy-efficient renovation incentives (NextGenerationEU): Funded through the EU-backed Recovery, Transformation and Resilience Plan, these incentives support upgrades that reduce energy consumption and heating or cooling demand, such as insulation, window replacement, roof renovations, and building carpentry. Applications are managed by each autonomous community, and works generally need to be completed by 2026.

• Regional and municipal support schemes: Many autonomous communities and local councils offer their own renovation grants or assistance programmes for individuals and housing communities. These may complement national incentives, so it is worth checking your local administration’s official website for current opportunities.

• IRPF deductions: Energy efficiency improvements may qualify for income tax (IRPF) deductions, depending on the type and impact of the work. For example, renovations that improve the consumption of non-renewable primary energy can be eligible for a 40% deduction, applied to eligible costs up to a maximum base of 7 500 EUR.

Renovations, decorations, and common retailers

Home renovation in Spain can range from simple cosmetic updates, such as painting, changing fixtures, or replacing taps, to major structural projects like extensions, layout changes, or overhauling plumbing and electrical systems. The level of renovation you choose directly affects both the budget and the legal requirements. While smaller decorative works are usually easier to plan and cost, larger projects often require professional involvement from architects or engineers and longer timelines, which can significantly increase overall expenses.

For certain types of renovation work, you must obtain a building permit (licencia de obra) before starting. Spain generally distinguishes between minor permits for smaller renovations and major permits for structural works. These permits are issued by your local municipality (ayuntamiento), and rules, fees, and processing times vary by region. Factoring in approval time and permit costs early can help prevent delays.

If you are financing your renovation through a mortgage or renovation fund, it’s best to speak to a mortgage advisor or bank early in the process. This is particularly important for international buyers, as some Spanish lenders offer specialised services for expats to help navigate both financing options and local permit requirements. Planning your budget and funding alongside the legal process can help avoid delays and unexpected costs.

Building materials, fixtures, fittings and DIY

Spain has a robust local market for building materials and DIY supplies, from large chain retailers to specialised suppliers. Materials include timber, tiles, plumbing and electrical fittings, paint, and tools. Small hardware stores (ferreterías) can also be useful for specialised items and local advice.

Here are some of the retailers you’ll commonly come across:

• Brico Depôt: Low-cost warehouse chain offering building materials and tools, ideal for cost-conscious DIY projects.

• BriCor: Part of the Spanish retail group El Corte Inglés, offering mid-to-high price range DIY and renovation products.

• BigMat: Professional-focused construction and DIY chain operating on a mid-range to competitive budget.

• Leroy Merlin: Major DIY and home improvement chain suitable for mid-range budgets, offering a wide selection of tools, materials, and fixtures.

• Obramat: Professional-grade warehouse with competitive prices, primarily aimed at trade professionals purchasing in bulk.

Household goods

For everyday household items, from bedding and kitchen essentials to décor and textiles, Spain has a broad retail landscape ranging from affordable chains to department stores:

• El Corte Inglés: Spanish department store with a broad selection of homeware, kitchenware, and décor, often positioned at mid‑to‑higher price points.

• IKEA: Affordable furniture, storage solutions, and home essentials, ideal for cost-conscious homeowners or starter homes.

• JYSK: Budget-friendly chain specialising in furniture, mattresses, and home textiles, with simple Scandinavian-style designs.

• Maisons du Monde: Trendy and stylish furniture, lighting, and décor items for mid-to-high budgets, with eclectic designs inspired by international trends.

• Zara Home: Fashion-forward home décor, bedding, and textiles for mid-to-high budgets, perfect for contemporary interiors.

Kitchen renovation

Kitchen renovations typically involve cabinetry, countertops, fixtures, and often appliances, making them one of the more significant renovation expenses in a home. While general retailers like Leroy Merlin and IKEA offer kitchen design and installation services, specialised stores provide higher-end solutions, customisation, and premium finishes:

• Cocinas Río: Luxury kitchen designer with high-end, bespoke options, located in Madrid.

• Èggo: Kitchen brand offering modern, stylish kitchens with a focus on quality and functionality, providing a good balance between price and quality.

• Porcelanosa: Premium kitchen solutions with high-quality materials, fixtures, and finishes, ideal for designer kitchens.

• Schmidt: High-quality kitchens with modern design, durable materials, and a focus on functionality and style, suitable for premium home renovations.

Bathroom renovation

Bathroom remodels typically include new sanitaryware, tiling, plumbing fixtures, and lighting, making them a key part of home renovation projects. Specialised stores provide higher-end options and designer finishes for those looking for quality and style:

• Porcelanosa: Premium tiles, fixtures, and complete bathroom solutions, ideal for modern and high-quality designs.

• Roca: Renowned Spanish brand offering durable and stylish sanitaryware, taps, and bathroom systems.

• Torvisco: Spanish company offering bathroom furniture, cabinets, and vanities, combining modern design with practical functionality, all at a more accessible price point.

Swimming pool renovation

Swimming pool upgrades, such as resurfacing, pump and filter replacement, heating systems, or aesthetic enhancements, vary widely in cost. Minor refurbishments typically start in the low thousands of euros, while larger projects with technology upgrades or custom finishes can rise significantly. Local pool specialists provide detailed quotes tailored to size and complexity.

Furniture renovation

Refurbishing furniture, through reupholstery, repainting, or refinishing, is a cost-effective way to refresh your home, giving old pieces a new lease of life while saving money compared with buying entirely new furniture. For smaller DIY projects, materials such as paint, brushes, varnishes, and fabrics can be sourced from local hardware stores or DIY chains. For more complex refurbishments – for example, restoring antique furniture or custom reupholstery – it’s often worth hiring a local carpenter or upholsterer, who can provide professional craftsmanship and ensure a high-quality finish.

Maintenance and safety

Owning property in Spain comes with mandatory legal obligations to ensure your home meets safety standards and is properly maintained. These requirements are not optional, and failing to comply can result in fines, legal liability, or insurance issues. Regular maintenance and compliance with building codes help protect residents, visitors, and the property itself, and are a key part of responsible ownership.

Important areas of compliance include structural integrity and general maintenance, fire protection, electrical safety, and gas systems. Understanding these obligations before starting renovations ensures that any work meets legal standards and avoids costly mistakes. Specific frequencies and inspection requirements can vary by autonomous community and type of property, and many obligations (especially for buildings with shared systems) are overseen at the municipal level. Private homeowners should consult local authorities or professionals for precise requirements in their area.

Structural integrity

House owners are responsible for maintaining the structural integrity of their property, carrying out regular inspections and repairs to prevent deterioration. Any major renovation affecting key elements, such as walls, roofs, or foundations, generally requires the involvement of a certified architect or engineer. In addition, buildings above a certain age must undergo a mandatory Technical Building Inspection (Inspección Técnica de Edificios, ITE), as required by the municipality (ayuntamiento).

Fire protection

Although fire detection and firefighting equipment are not mandatory in all private homes, many multi-unit buildings (especially older ones) are required to have fire extinguishers in common areas. Even where it is not legally required, it is considered good practice for homeowners to install basic fire-prevention and safety measures in their property, such as smoke detectors, fire extinguishers or fire blankets, and carbon monoxide detectors for homes with gas appliances or fireplaces.

Electrical safety

Spanish law requires all electrical installations in homes to comply with the Reglamento Electrotécnico para Baja Tensión (REBT) and be properly certified. Any new installation or significant update must be installed by a qualified electrician and accompanied by a Boletín Eléctrico (Electrical Installation Certificate) issued by an authorised professional. Properties often undergo electrical checks when they change ownership or when renovating, and compliance may be required for insurance validity or utility connection.

Water and gas systems

Water systems must be safe and hygienic, with adequate pressure and drainage, although specific inspections are typically tied to habitability requirements at sale or rental rather than an ongoing annual mandate. Gas installations are subject to safety regulations under Royal Decree 919/2006, and must be inspected periodically (typically every 5 years). Inspections focus on pipelines, valves, joints, and ventilation to prevent leaks, fires, or carbon monoxide hazards, and must be carried out by certified technicians. Failure to maintain certified gas installations can affect insurance coverage and entail legal liability.

Renovations advice in Spain

When planning a house renovation, a few key steps can save you time, reduce costs, and help ensure your project meets local requirements. Here are some practical tips to help you navigate the process in Spain more confidently:

• Plan ahead: Obtain all necessary permissions before starting the work. Take time to clearly define what you want from the project, as this helps prevent changes mid-construction that can cause delays and increase costs.

• Set a realistic budget: Include materials, labour, permits, and contingency costs, and compare all available financing options, including loans and national or regional subsidies.

• Consider international transfers: Services like Wise can reduce costs when sending funds from abroad to cover renovation expenses.

• Hire qualified professionals: Licensed architects, engineers, and electricians ensure work meets legal standards.

• Keep documentation: Save invoices, permits, and certificates for compliance checks, insurance purposes, or subsidy claims.

FAQ

How to choose a contractor for renovations

Select renovation contractors with verified licences, positive reviews, and local experience. Request detailed quotes, check references, and clarify timelines and responsibilities. Contracts should specify deliverables, payment terms, and quality standards.

How to make eco-friendly renovations

Focus on energy-efficient windows, insulation, low-consumption lighting, and water-saving fixtures. Solar panels, heat pumps, and eco-friendly materials can also reduce long-term costs while improving your home’s environmental footprint.

How to budget for a home renovation

Start with a detailed estimate of labour, materials, permits, and unforeseen costs. Factor in professional fees, inspections, and potential delays. Maintain a contingency fund (typically 10-15% of total costs) to cover unexpected expenses.

What are the best home renovation software tools?

Here are some of the top software tools you can use to plan, visualise, and refine your renovation ideas before and during work:

• HomeByMe; 
• Homestyler;
• Planner 5D;
• SketchUp.

Useful resources

• Wise – Landing page for Wise Spain (last checked 25th January 2026)
• Expatica – Mortgage advisors directory (last checked 25th January 2026)
• Santander personal loan – personal loan (last checked 25th January 2026)
• CaixaBank personal loan – personal loan (last checked 25th January 2026)
• Bankinter personal loan – personal loan (last checked 25th January 2026)
• ABANCA home renovation loan – home renovation loan (last checked 25th January 2026)
• BBVA home renovation loan – home renovation loan (last checked 25th January 2026)
• Revolut home renovation loan – home renovation loan (last checked 25th January 2026)
• Ministerio de Vivienda y Agenda Urbana – Recovery, Transformation and Resilience Plan (last checked 25th January 2026)
• Agencia Tributaria – IRPF deduction for housing energy efficiency improvement works (last checked 25th January 2026)