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How Much to Budget for a Home Renovation in Spain

Writer: URU Reformas
URU Reformas
7 days ago
8 min read

Homeowner and contractor review renovation costs

For a full renovation in Spain, plan on roughly €450 to €1,100 per square metre, which puts a 90 m² flat at somewhere between €40,500 and €117,000 depending on the finish. On top of that, add technical fees, licence costs, VAT where it applies and a contingency of 5 to 10%. The rest of this guide explains what moves a project up or down that range, so you can build a budget before you ask anyone for a quote.

 

Key Takeaways

 

  • Nationwide, full renovations are typically quoted at €450 to €1,100 per m² in 2026, with finish level, location and the building’s condition driving the spread.

  • Structure, hidden installations and insulation can take up to half of an integral budget, well above the visible finishes.

  • Reduced VAT of 10% applies only if the property is over two years old and the contractor’s materials do not exceed 40% of the total; otherwise it is 21%.

  • Keep 5 to 10% in reserve, and hold back part of the payment until the work is checked.

  • Always compare at least three itemised quotes, not lump sums.

 

Table of Contents

 

 

The short answer: cost per square metre

 

Published 2026 estimates for Spain put a complete renovation at 450 to 1,100 euros per square metre. That is a wide band because “renovation” covers anything from repainting and replacing a kitchen to stripping a flat back to the walls and rebuilding every installation.

 

For a standard 90 m² flat, the same estimates give three tiers:

 

Scope

Typical total for 90 m²

Basic: cosmetic refresh, existing layout kept

€40,500 to €54,000

Mid-range: new installations, kitchen, bathrooms, flooring

€63,000 to €81,000

High-end: premium materials, layout changes, bespoke joinery

€90,000 to €117,000

Treat these as planning figures, not quotes. Two flats of identical size can land at opposite ends of the table because of what is behind the walls. Local estimates for Alicante province are commonly in the same general territory as national averages rather than at the Madrid or Barcelona end, where prices run 20 to 30% above the national average, but the only reliable local figure is a quote from someone who has seen the property. We cover the coastal picture in more detail in our Costa Blanca renovation cost guide.

 

What actually drives the price

 

The condition of what you cannot see

 

The most expensive parts of a renovation are rarely the ones you choose in a showroom. A Spanish architect interviewed by Telecinco points to structural interventions, hidden infrastructure (electrical, plumbing, gas) and insulation as the costliest items, and says together they can represent up to 50% of an integral renovation, while visible finishes account for roughly 25 to 30%.

 

That matters for how you spend. A cheap tile on a wall with failing pipes behind it is the weakest link failing first. If a budget needs trimming, cut finishes before you cut installations.

 

Structural changes

 

Moving or opening a load-bearing wall brings technical calculations, specialist labour and stricter safety measures, all of which raise the cost significantly. An open-plan kitchen and living room is one of the most requested changes in older Spanish apartments, so find out early whether the wall you want to remove carries load.

 

Insulation and energy performance

 

The same article cites IDAE, Spain’s energy agency, for estimated energy savings of around 30% from thermal and acoustic insulation work. It is a cost at the start and a saving afterwards, and it is much cheaper to do while walls and ceilings are already open.

 

Location and timing

 

Labour rates differ by region, and a tight deadline can force the contractor to put more trades on site simultaneously, which adds cost. A realistic schedule is one of the cheapest ways to protect your budget.

 

Salt air, damp and age

 

On the coast, old terraces, roofs and façades often hide moisture problems that only appear once finishes are removed. If you are buying an older property near the sea, read what to check before buying a property to renovate before you set a figure.

 

Kitchens and bathrooms

 

These are the rooms readers ask about most, and they cost more per square metre than the rest of the home because of plumbing, electrics, tiling and fitted units.

 

El País gave an example of around €15,000 for a 10 m² kitchen and about €10,000 for a 5 m² bathroom, or roughly €1,500 and €2,000 per m². That article dates from 2021, so expect today’s figures to be higher. Across a whole mid-range project, kitchen and bathrooms together account for about 22 to 28% of the budget.

 

What changes the number:

 

  • Whether you keep the existing layout and the position of drains and water points.

  • The kitchen units: standard modules or made-to-measure carpentry.

  • Tiling, worktops and appliances, which can double a kitchen’s cost between basic and premium choices.

  • Converting a bath to a walk-in shower, which involves new waterproofing, a floor-level tray and often a re-laid drain. This is also the most common request for older owners who want a safer, more accessible bathroom.

 

Costs people forget

 

Technical project and council fees

 

If your work needs an architect’s or technician’s project, plus the council’s charges, budget €1,500 to €4,000 for these items. They sit outside the builder’s price.

 

Works licence

 

Most work beyond simple cosmetics needs a licence from the town hall. In Alicante, for example, the minor-works licence covers non-structural refurbishment that needs scaffolding on public space, as well as certain structural interventions. Every municipality has its own procedure and fees, so check with the council where your property is, whether that is Torrevieja, Orihuela or elsewhere. OCU also advises you to check whether a works licence is required before you sign anything.

 

VAT (IVA)

 

The rate you pay changes the total by more than ten percentage points, so it is worth understanding. A reduced 10% rate applies to renovation and repair works on residential buildings when the property is more than two years old and the materials supplied by the contractor do not exceed 40% of the total; otherwise the standard 21% applies. On a €60,000 job, that is the difference between €6,000 and €12,600 in tax.


VAT comparison on a €60,000 renovation

Two practical points follow. First, the quote must show the VAT clearly. Second, if you buy the materials yourself the split changes, so ask your contractor how the invoice will be structured. For anything unusual, a tax adviser or gestor can confirm how the rate applies to your case.

 

Community of owners

 

In a flat, work that touches shared elements, such as facades, risers or shared drainage, may need approval and can increase community charges. An architect’s inspection before purchase is recommended for exactly this reason. Our article on renovating a Spanish property from abroad explains which works need approval.

 

A worked example: mid-range flat, 90 m²

 

Take a mid-range renovation at the middle of the published band, about €72,000. Here is how a careful owner would build the real budget around it:

 

  1. Construction and installations: the largest share, as hidden infrastructure and insulation are the heavy items.

  2. Kitchen and bathrooms: roughly a quarter of the total.

  3. Technical project and council fees: €1,500 to €4,000.

  4. VAT: 10% if the conditions above are met, 21% if not.

  5. Contingency: 5 to 10% of the total, which is €3,600 to €7,200 on this figure.

 

So a “€72,000 renovation” can realistically become a figure in the high €70,000s or low €80,000s once you add fees and reserve. That is not a surprise if you plan for it from the start. It becomes one only if the first number you hear is the only one you budget.

 

How much contingency to keep

 

Set aside 5 to 10% of the total for unforeseen issues such as hidden damp or structural reinforcement. In an older building, or one that has been closed up for years as a holiday home, aim for the upper end.

 

Pro Tip: Hold the reserve as a separate line in your own budget and do not tell it to the contractor as part of the price. Anything not used is yours to keep.

 

How to keep the budget under control

 

OCU, the Spanish consumer organisation, gives consistent advice on how to protect yourself:

 

  • Compare several quotes, and make sure each specifies materials and quantities.

  • Insist the price includes taxes, so you compare the full amount.

  • Sign a written budget that details the work, materials and payment terms.

  • Retain 30 to 40% until the work is complete and checked.

 

Its later guidance recommends at least three detailed quotes, written completion dates and a cap of 30% on the initial payment for materials. Also ask for quotes broken down by trade and based on measured quantities rather than lump sums, which makes like-for-like comparison possible. If you are shortlisting firms on the coast, this checklist for choosing a renovation company in Torrevieja covers what to ask for.

 

Our perspective

 

Most budget overruns we see on the Costa Blanca come from three things: a quote that left out an item (waterproofing, electrical certificates, rubbish removal), a property whose condition was only discovered after demolition, and an owner who could not be reached for decisions. The first is solved by detailed, phased quotes. The second by a proper survey before the price is fixed. The third by clear communication, which matters most for owners living abroad, who need regular photo and video updates rather than weekly surprises.


Our perspective — overview diagram

Our advice is to spend first on what the building needs to stay sound and dry: plumbing, electrics, waterproofing, insulation. Then spend on finishes. In coastal homes, where salt and moisture attack weak details, this order protects the investment. Our guide to coastal renovation and moisture details shows what to demand in the specification.

 

We work with fixed, itemised quotes and manage all the trades under one contract, so the number you approve is the number you track.

 

— URU Reformas

 

Getting a quote you can rely on

 

We publish no standard prices, because a renovation is billed by contract according to its scope. We offer free consultations and detailed phased quotes for full and partial renovations, kitchens, bathrooms, plumbing, electrics, waterproofing and extensions in Torrevieja and the Vega Baja. See our full renovation service, look at our completed work, or contact us to arrange a visit. Planning a larger project? Compare it with the cost of building a home in Alicante.

 

FAQ

 

How much does a kitchen cost in Spain?

 

A 10 m² kitchen was cited at about €15,000 in a 2021 El País article, so expect more today. The final price depends on whether you keep the layout, the type of units and the appliances. Kitchens and bathrooms together typically make up 22 to 28% of a mid-range renovation.

 

What is the most expensive part of a home renovation?

 

Usually the part you do not see: structural work, electrical and plumbing infrastructure and insulation. Together they can reach up to 50% of an integral renovation budget, while visible finishes account for around 25 to 30%.

 

What contingency should I allow?

 

Allow 5 to 10% of the total for unforeseen problems such as hidden damp or structural reinforcement. Use the higher figure for older properties or those you have not been able to inspect fully.

 

Is renovation VAT 10% or 21%?

 

It is 10% when the property is residential, over two years old and the contractor’s materials are no more than 40% of the total cost. Otherwise 21% applies. Confirm your case with your contractor and, if needed, a tax adviser.

 

Sources

 

 

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