When Andrew and I decided on buying a cheap house in Spain, we had a pretty clear checklist of must-haves. We’ve always been dreamers, but we’re also practical enough to know what we need to make a place work for us. Here’s the rundown of our “dream home” list:
A large outdoor area (We’re smokers and splashers—yes, we love swimming, even if it’s more about splashing than actual laps.)
An enclosed outdoor space or one we could enclose ourselves (Privacy is key, especially when you just want to relax.)
A house that’s small enough to manage but still big enough for both of us to have our own spaces (Work-from-home life means separation is essential!)
A garage or at least guaranteed car parking.
Two bedrooms minimum (because guests are inevitable, right?)
A space for a veggie patch (I mean, who doesn’t want fresh homegrown veggies?).
When we first saw the listing for this house, our biggest concerns were the lack of a garage and the fact that the house was on a narrow slip lane—too narrow for cars. But the condition of the house looked good, and we could immediately see its potential. So, we reached out to the agent for more info, but we knew that given our budget—€30,000 (about $50,000 AUD)—we were dealing with a small pool of options. Most houses in this price range are either falling apart or are out in the middle of nowhere, often without basic utilities like electricity or water. Connecting those could cost upwards of €10,000, if it was even possible.
NOTE
Unfortunately, there wasn’t a shot of the facade, so I went ahead and drew one for you. Our home has four windows, two of which have the classic bars you often see in Spain. Right in the centre, there’s this charming old-school lamp that hangs just above the front door—a beautiful but well-worn wooden panel that we’re eager to restore. The door has this gorgeous large brass knob right in the middle, which we’re hoping to polish up and bring back to life. It's a terrace house, so we’re snugly in between two others, with a simple concrete path out front that I’m planning to refinish. There’s no greenery at the moment, but I’ve got big plans to add some lupins and maybe even a statement cactus to brighten it all up.
The Waiting Game Begins
We liked the house, but we didn’t let ourselves get too excited just yet. There were too many unanswered questions. The good news was that it was listed by a reputable real estate agency, Tecnocasa, so we felt a bit reassured. However, trying to get a reply from them? That was a nightmare. I was emailing, calling, doing everything I could, but it felt like I was getting nowhere. I began to wonder if they even wanted to sell the house.
What I didn’t realise at the time—and what I’ve since learned—is that Spain essentially sleeps in August. Everyone’s on holiday, so of course things were moving at a snail’s pace. I didn’t know this back then, though, so my frustration was real.
Eventually, after what felt like an eternity of back-and-forth, the agent finally put me in touch with the person directly managing the property. And to my surprise, once I explained that we’d be buying the house without physically being there (yep, we’re those people), they were more responsive. A week later, they sent us a video tour of the house.
The Hidden Gem
This is when the excitement started bubbling up. You know that moment when you just know you’ve found something special?
This house was the definition of a hidden gem. Somehow, the best features weren’t even mentioned in the listing, and there were no photos to show them off either. Instead, the listing focused on something I still can’t get over—multiple photos of a rundown, above-ground pool. I’m talking seven photos of this sad little pool, as if it were the crown jewel of the property.
My immediate reactions:
Why in the world did they post so many photos of this pool?!
They boast about the newly renovated kitchen... really?
Thank goodness they had no idea what they were doing because, based on the photos alone, most people would probably scroll right past this listing. That meant fewer potential buyers, and more hope for us!
The house had so much going for it, but none of that was highlighted. Here’s what should have been in the listing:
A garage (YES! Even though the listing said otherwise, it did indeed have one.)
A three-level outdoor space (Perfect for those splashy pool days.)
A hidden storage area under the patio (More space for all our stuff!)
The roof had been redone within the last year.
The electrical and plumbing had been updated—a big deal when it comes to older Spanish homes.
And a view that's labelled top 10 views in the worl by National Geographic.
All of this made us realise just how undervalued the house was. But we didn’t jump right in with an offer—we hesitated, waiting to get all the facts straight. And that hesitation cost us...
The Day We Lost the House
A couple of weeks passed, and then came the email I had been dreading: “Hello Jasmine, sorry to inform you, but the house has now gone into reserve.” My heart sank. I had dreams for this house. I had spent weeks planning out how we’d renovate it, how we’d turn it into our dream home. And now, just like that, it was gone.
I was devastated. But Andrew and I are big believers in "if it’s meant for us, it will be ours"—so we tried to stay positive, even though it felt like my heart was being ripped out. Back to Idealista I went, scrolling through listings, trying to find something that came close to what we had lost. But nothing compared.
Nothing had the same hidden charm, and nothing felt right and I'd initially been looking for about 8 months...
Fate Steps In
Just when I had started to accept the loss, the agent contacted us again: “The reserve fell through. The other buyers couldn’t get their loan approved.” HALLELUJAH! I can’t describe the relief. It felt like everything was falling into place. The house was ours for the taking... if we could act quickly.
The Offer (For Real This Time)
This time, we didn’t hesitate. We made an offer of €30,000 with a €3,000 down payment to show we were serious. But there was still one small problem—we didn’t have a lawyer yet. Trying to find a lawyer in August in Spain is like finding a needle in a haystack. Everyone’s on holiday, remember? We were sweating it out, hoping that everything wouldn’t fall through again while we scrambled to get legal help.
Eventually, we found our lawyer—Maria—who kindly agreed to give us some of her holiday time to help. Bless her. With Maria on board, we were ready to move forward, but there was one more hurdle. The house had some illegal renovations, which is super common in Spain, but we didn’t want to risk it. So, we added a clause to the contract saying that the owners had to declare all the renovations and make sure the Nota Simple (the legal document showing the status of the property) was updated before the house officially became ours.
This process could take up to six months, so we also stipulated that we’d be allowed to move in by November (since the owners weren’t living there anyway) and that they wouldn’t receive the remaining €20,000 until everything was legally sorted. They agreed, and we were finally one step closer to our dream.
Where We Are Now
So, here we are. We have our home in Spain, just waiting for us. It’s already insured, and our car is ready to be picked up when we arrive. Now, the fun part begins—renovation plans! I’ve already started sketching out what we want to do, and I’m ridiculously excited. I might not be an architect, but after years of watching The Block and renovating one apartment, I’m confident we can handle most of the work ourselves (except for the electrical and plumbing, obviously).
I’ll keep you updated as we move forward with the renovations and turn this hidden gem into our dream home. There are sure to be more hurdles ahead, but we’re ready for them. Stay tuned for the next post, where I’ll dive into all the changes we’re planning to make.
This is just the beginning of our adventure in Spain, and I can’t wait to share it with you all!
The Fees Breakdown: What We’ve Learned So Far
Let me preface this by saying that all the information I’m sharing here is based on what we’ve experienced so far. Things could change, so definitely check with your lawyer or real estate agent to verify the details. Fees and taxes also vary depending on where you buy your property in Spain, and in our case, we’re basing everything on Granada’s fees.
For reference, our final house price was €30,000, but after registering the new renovations, the cadastral value (more on that later) will be around €35,000. This matters because many fees are based on the cadastral value, not the purchase price.
So, what’s a cadastral value? It’s essentially the value the Spanish government assigns to a property for tax purposes. It’s often much lower than the market price and is used to calculate things like property taxes and registration fees.
Agent Fee
The agent fee can vary wildly depending on who you’re working with. In our case, the fee was €4,500, not including VAT (which in Spain is currently 21%). This might sound a bit steep, but keep in mind that some agents will include certain fees in the house price, while others won’t. Make sure to clarify this upfront, because a low agent fee might be tempting, but there could be hidden costs elsewhere.
Lawyer Fees
Unlike in Australia, where lawyers charge by the hour, in Spain, the fee is usually 1-2% of the property value. Our lawyer charged us €500 plus VAT, which seems pretty reasonable. Keep in mind that some lawyers might have a set minimum fee, so it’s worth discussing that beforehand.
ITP or VAT on the House
Next up is the ITP (Impuesto de Transmisiones Patrimoniales), which is basically the transfer tax. This is what you pay to have the house put in your name, and you’ll have 30 days to pay it after the notary signing. Now, here’s where it gets confusing—lawyers and agents often refer to it as “VAT,” but they’re not the same thing. If you’re buying a new build or an off-plan property, you’ll pay VAT, which is 21%. But if you’re buying an already established (or “second-hand”) home, you’ll only need to pay ITP. The rate for ITP varies by region, and in Andalusia, it’s the lowest in the country at 7%, or 6% if you’re under 35. For us, that works out to €2,148, based on the cadastral value of €35,000.
Land Registration Fee
The land registration fee is also based on the cadastral value and is calculated as follows:
Below €6,010.12: €24.04
Between €6,010.13 and €30,050.61: Add €1.75 per €1,000
Between €30,050.62 and €60,101.21: Add €1.25 per €1,000
Between €60,101.22 and €150,253.03: Add €0.75 per €1,000
Between €150,253.04 and €601,012.10: Add €0.30 per €1,000
Above €601,012.10: Add €0.20 per €1,000
For us, this works out to about €50.73.
Notary Fee
The notary fee usually ranges between 0.2% and 0.5% of the property value, but unfortunately, I can’t give you an exact number just yet. We won’t know until the day of the notary signing, so I’ll have to update this later.
Annual Property Tax (IBI)
Although this isn’t an immediate expense, it’s something you should be aware of. The IBI (Impuesto sobre Bienes Inmuebles) is the annual property tax, which is calculated based on the cadastral value. In Granada, it’s 0.653%. For a worrywart like me, it’s nice to know what to expect ahead of time. You can look up the IBI rate for your specific area online.
Total Estimated Fees
In total, we’re expecting to pay around €8,500 just in fees (including taxes, lawyer fees, etc.).
So you want to buy a cheap house in spain but don't know where to start?
I really mean it when I say this shit is hard, because no matter how much you prepare, there is still so much to uncover.. so I will say this and mean it. If you get stuck, please reach out. You can find me almost anywhere. Instagram, or submit a contact form, anywhere really. I absolutely love talking about this topic and I'm more than happy to answer to the best of my abilities.
Thanks for reading!!
xoxo Jasmine & Andrew
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