Buying an Old Townhouse in Spain's Historic Centre

Historic centres have an obvious pull: thick stone or brick walls, high ceilings, tiled patios, a location you can walk everywhere from. For buyers from the United Kingdom who picture a holiday home or a future rental in Spain, an old townhouse often feels more genuine than a new-build flat on the outskirts. That feeling is fair, but it comes with homework most new-build purchases never require.

Before any offer, a buyer needs to understand what condition the building is really in, what the local council allows you to touch on the outside, and which permits a renovation will need. None of this should put you off an old house in Spain; it simply has to be priced into your decision and your timeline.

Town-centre houses in Spain are often decades or centuries old, and they age unevenly. Damp in party walls, timber beams eaten by woodworm, old wiring behind plaster, roofs that were patched rather than replaced: these are the kind of issues a technical survey picks up before a notary ever gets involved. For a non-resident buyer coming from the United Kingdom, arranging an independent architect's or surveyor's report is one of the few checks worth doing in person, or by video with someone you trust on the ground.

A structural report also feeds directly into budgeting. Our own group has bought, renovated and resold 19 homes for investor projects since 2022, and across those projects the median renovation budget has run at 22% of the purchase price. That figure is a past result from our own accounts, not a forecast for any specific house in Spain, but it gives a sense of scale: renovation on an old townhouse is rarely a cosmetic job alone.

Many historic centres in Spain apply some form of heritage protection to street-facing façades, even on ordinary houses that are not individually listed. This can restrict window shapes, shutter colours, render, and sometimes roof lines or visible rooftop additions. Before you commit, it is worth asking the local council's urban-planning office, directly or through a lawyer, what protection level applies to the specific building, because rules vary street by street within the same town.

Interior layouts are usually far more flexible than façades, which is why many buyers reconfigure the inside while keeping the street front largely as it was. Knowing this distinction early changes what you offer for the house and what you budget for afterwards.

Any structural work on an old townhouse in Spain will normally need a municipal building permit, and works touching a protected façade may need separate heritage approval before the usual permit is even considered. Timelines depend on the town hall's workload, so it is sensible to ask about typical waiting periods locally rather than assume a fixed figure. A gestoría or local architect familiar with Spain's planning office can usually tell you what paperwork a given project will trigger before you buy.

Once renovated, if the plan includes tourist rental, remember that short-term lets require a regional licence and that some buildings or neighbourhoods restrict them altogether, independent of whether the renovation permit was granted. It is worth confirming this before, not after, buying.

Buying from the United Kingdom does not change the Spanish process, but it does add a document trail on the UK side. Spanish banks and your own lender, if you use one, will usually ask for recent proof of income such as a P60 and payslips, your last filed Self Assessment return, bank statements from the last three to six months, and details of any existing loans or mortgage commitments, alongside a valid passport.

Spain and the United Kingdom have a double taxation agreement, and a local tax adviser should confirm exactly how any future rental income or capital gain on the house must be declared both in Spain and to HMRC. Since the UK uses sterling rather than the euro, it is also worth planning for exchange-rate movements and conversion costs when transferring funds for the purchase or the renovation.

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.