What a Managed Renovation Investment in Spain Really Costs

A managed renovation investment means Sókerim finds a property with renovation potential, you buy it in your own name, our own team of renovators carries out the work, and we sell it or rent it out for you afterwards. You pay agreed fees for each stage; we never pool investors' money, and this is not a fund or a collective scheme.

Working out whether a project makes sense means looking past the purchase price to every cost that follows: taxes at purchase, the renovation budget, costs while you hold the property, and costs when it is eventually sold or let. This page sets them out in order, with the facts that apply specifically to buyers moving money from the United Kingdom.

A managed renovation investment in Spain is not just the purchase price. Before you sign anything, you should see every fee in writing: the service fee for sourcing the property, the fee for coordinating the renovation, and any fee linked to selling or letting it afterwards. Sókerim sets these out before you buy, so there are no surprises once the project starts.

On top of fees sit taxes that apply whether you invest from the United Kingdom or anywhere else: transfer tax or VAT on purchase, notary and land registry charges, a gestoría to handle paperwork, and — if you choose one, as most foreign buyers do — a lawyer's fee. None of these are optional extras; they are part of the real cost of owning property in Spain.

Resale homes carry a regional transfer tax (ITP), set by each autonomous community; new-build properties instead carry 10% VAT plus stamp duty. Add notary fees for signing the deed, land registry fees for recording your ownership, and gestoría costs for processing paperwork — all paid around completion.

A lawyer is optional under Spanish law but usual for buyers who do not live in Spain, since they check the property's legal situation, debts and licences before you commit funds. These purchase costs depend on the purchase price itself, not on the renovation budget that follows.

Once you own the property, costs continue even before renovation work begins. Municipal property tax (IBI) and community fees are charged every year, and utilities need to stay connected — sometimes at a low usage level — while the renovation team works. These holding costs run alongside the renovation budget itself.

The renovation budget is usually the largest variable cost in a managed investment. Across the 18 homes our group has bought, renovated and resold for investor projects since 2022, the median renovation budget was 22% of the purchase price — a documented past figure, not a forecast for your project, since every property needs different work.

When the property is sold — whether Sókerim manages the sale for you or you decide to keep renting it out instead — selling costs include agency fees if used, a share of notary costs usually agreed with the buyer, and the municipal capital-gains tax (plusvalía), charged on the increase in the land's value since purchase.

If you are a non-resident seller, the buyer is required by law to withhold 3% of the agreed price and pay it to the Spanish tax authority on account of your capital gains tax. You then file a return to settle the final amount due, which can mean a refund if the withholding exceeded the actual tax owed.

As the United Kingdom is no longer an EU member state, British citizens can stay in Spain for up to 90 days in any 180-day period without a visa; longer stays, including time needed to oversee a renovation closely, require a visa or residence permit. The Spanish Golden Visa route for investors ended on 3 April 2025 and is no longer available, so property investment alone no longer grants residence rights.

Spain and the United Kingdom have a double taxation agreement, but a local tax adviser should confirm exactly how rental income or any gain on sale must be declared to HMRC alongside your Spanish filings. Because the United Kingdom uses the pound rather than the euro, build exchange-rate movements and conversion costs into your budget whenever you transfer funds for the purchase, the renovation or ongoing costs.

Spain is a relatively short flight away from most UK airports, making regular visits to a Spanish property straightforward for owners based in Britain. Many British buyers are drawn to Spain for its climate, coastal lifestyle and established expatriate communities. One practical point to bear in mind is that Spanish inheritance law differs from UK rules, so it is worth taking specific advice on how it may affect the property and one's estate. Currency movements between sterling and the euro can also affect the overall cost of purchase and ongoing expenses.

Spain and the United Kingdom have a double taxation agreement in place, and a local tax adviser should confirm how rental income or gains from Spanish property must be declared and reported to HMRC.

As the United Kingdom is no longer an EU member state, British citizens may stay in Spain for up to 90 days in any 180-day period without a visa, and must apply for a visa or residence permit for longer stays.

Since the United Kingdom uses the pound sterling (GBP) rather than the euro, buyers should factor in exchange-rate movements and currency conversion costs when paying for a property or transferring funds to Spain.