The Spanish real estate market, particularly in the Costa del Sol region, presents an attractive opportunity for Slovak investors. Whether you're looking for an apartment for short-term rental or a villa for flipping, the process has its own specificities that differ significantly from what we're used to at home. In collaboration with an expert on the local market, we've prepared a detailed overview of what to expect.
When buying a property that has already been owned, the process begins with finding a suitable property and submitting an offer. Once accepted, several key steps follow:
In Spain, most holiday properties are part of so-called urbanizaciones with shared management. This brings important restrictions for investors:
Warning for Airbnb investors: Owners' communities now have the right to ban short-term rentals within their complex by a majority vote. However, they cannot ban long-term rentals (over 12 months).
If you plan to rent out the property, your lawyer must thoroughly review the community rules to avoid purchasing an apartment where you cannot legally operate a rental business.
When calculating your investment, bear in mind that listed sale prices are always exclusive of taxes.
| Property Type | Tax / Fee | Total Price Increase |
|---|---|---|
| Secondary Market (Resale) | 7% Transfer Tax (Andalusia) | ~10% (incl. lawyer/notary) |
| New Build | 10% VAT + 1.2% Stamp Duty | ~13% |
| Commercial Premises | 21% VAT (no exceptions) | — |
When selling a property, Spain does not offer an income tax exemption based on the length of ownership. The seller pays a 19% capital gains tax (the difference between the purchase and sale price) and the municipal tax known as Plus Valía.
For investors engaged in renovation and resale (flipping), it is more advantageous to use a Spanish limited liability company (S.L.). If a company purchases a property under €500,000 exclusively for the purpose of resale within 3 years, it pays only 1% transfer tax instead of 7%.
Key restrictions during renovation:
Although squatters (okupas) receive a lot of media coverage in Spain, the situation on the Costa del Sol is calmer thanks to gated urbanizaciones with security. If the owner discovers an intrusion within 48 hours, the police can remove the individuals immediately. A greater risk are so-called "non-payers" — tenants who stop paying after the first month. This is why landlords today require strict verification of income and employment contracts from prospective tenants.
Spain offers excellent opportunities for capital appreciation, but it does not forgive mistakes. The market is highly competitive and rational decision-making is key. As experience shows, a good local lawyer, accountant, and experienced agent are not an extra cost — they are an essential protection for your investment.