Can I claim reform costs against capital gains?

Yes — structural improvements (mejoras) add to acquisition cost and reduce CGT. Cosmetic maintenance (conservación) does not. Keep every factura with NIE and itemised VAT.

Do I need a Spanish architect?

For obra menor, no — just a licensed builder. For obra mayor, yes — a colegiado architect signs the proyecto técnico submitted with the licence application.

Can a non-resident flip property in Spain?

Yes. CGT is a flat 19% for EU/EEA residents and 24% for non-EU. 3% of the sale price is retained at notary as advance payment. No restrictions on the number of flips.

Is VAT recoverable on reform costs?

Only if you're VAT-registered (autónomo or SL) and the property is held as business inventory. Personal flips: VAT is a sunk cost.

Property

Renovation & Reform Projects — Costa Blanca

Buy distressed, reform, resell or hold. Done right, renovation flips deliver €60–€120k margins on a €250k purchase in 9–14 months. Done wrong, you discover asbestos, illegal extensions and a six-month licence wait. This guide breaks down realistic budgets, licence routes and the four mistakes that kill 80% of first-time projects.

Last updated 1 June 2026

Reform budgets by scope (2026 €/m²)

Scope	€/m²	Typical 120 m² project	Timeline
Cosmetic refresh (paint, floors, kitchen, baths)	€350–€600	€42k–€72k	6–10 weeks
Full interior refurb (rewire, replumb, full kitchen/baths)	€700–€1,100	€84k–€132k	3–5 months
Structural reform (move walls, new layout, terrace)	€1,100–€1,600	€132k–€192k	5–8 months
Gut renovation (down to brick, new everything)	€1,500–€2,200	€180k–€264k	6–12 months
Add a pool	+€25k–€45k	—	+6–10 weeks
Energy upgrade (insulation, A/A, solar PV)	+€15k–€35k	—	+3–6 weeks

The 20% rule

Add 20% contingency to every reform budget. Hidden damp, asbestos in pre-1990 builds, and surprise structural work routinely add 15–25% to the agreed quote. Projects that come in on budget are the exception, not the rule.

Licence routes — get this right or stop everything

✦Obra menor (minor works) — declarative, typically 2–4 weeks: paint, floors, kitchens, baths, no structural change.
✦Obra mayor (major works) — full licence, 3–8 months in most ayuntamientos: structural changes, new openings, extensions, pools, layout changes.
✦Declaración responsable — fast-track in some municipalities for non-structural reforms; you certify compliance and start work.
✦Cédula de habitabilidad — must be renewed after any obra mayor before you can rent or sell.
✦Pre-1980 / cataloged buildings — heritage protections can block alterations entirely; check before you buy.

The flip maths (realistic case)

Line	€	Notes
Purchase price (resale, distressed)	€220,000	10% under market
Transaction costs (ITP 10%, notary, registry, legal)	€26,400	12% all-in
Reform budget (full interior, 110 m²)	€95,000	With 20% contingency
Holding costs (utilities, IBI, comunidad, 9 months)	€4,200	—
Total invested	€345,600	—
Sale price (post-reform, market)	€430,000	—
Selling costs (agent 4%, notary, plusvalía, CGT prep)	€26,500	—
Gross margin before CGT	€57,900	16.8% on capital
CGT (19–28% on gain)	≈€13,000	If non-resident: 19% flat
Net profit	≈€45,000	In 12 months

Where flips work best on the Costa Blanca

✦Northern villages (Jalón, Benissa, Parcent) — old townhouses €120–€180k, terrace/views add 30–40% post-reform.
✦Alicante city (Casco Antiguo, Benalúa) — 1960s apartments €110–€160k, rewire/replumb/restyle and rent or flip.
✦Calpe / Altea old town — small townhouses, character premium, strong holiday-let exit.
✦Avoid: 1970s coastal towers in Benidorm/Torrevieja — comunidad disputes and structural concrete issues eat margins.

The four mistakes that kill projects

Skipping the survey (informe técnico). €600 buys you a structural engineer's report before you buy — it catches asbestos, aluminosis, illegal extensions and prevents 90% of disasters.

Hiring on price alone. The cheapest quote is the slowest, most disputed and most likely to abandon mid-job. Get three quotes from licensed builders with recent local references and pick the middle.

Underestimating licence timelines. Obra mayor in Jávea or Altea can take 6 months. Budget the holding cost.

Over-improving for the area. A €200k two-bed apartment in Torrevieja won't resell at €350k no matter how beautiful the reform. Match finish to area ceiling.

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