Buying a house as a second home: legal, tax, and practical keys

Key differences between main residence and second home

Buying your primary home is not the same as purchasing a property for vacation use or investment. The law and taxation treat both cases differently, and understanding these differences can save you time, money, and problems.

Requirements for a property to be considered a main residence

The law establishes that for a property to be considered your main residence, you must occupy it effectively and permanently for at least 12 months, and keep it as such for a minimum of 3 years. Only then can you access certain tax benefits.

Tax implications and access to benefits

From a tax perspective, the main residence and the second home are subject to different regulations. The main residence may benefit from reductions or lower rates in certain taxes —such as ITP or AJD— depending on the autonomous community, as well as specific deductions in special regimes like the Basque Country or Navarra.In contrast, the second home does not enjoy these advantages and is subject to general taxation. Knowing these differences is key to properly planning your purchase and optimizing the tax burden.

Impact on financing and mortgage conditions

Banks usually offer less favorable conditions for second homes: a lower financing percentage (70–80% of the value) and higher interest rates. This is because they perceive a greater risk of default compared to a primary residence.

Essential legal aspects before buying

In a second home, legal security is also crucial. Before signing, it is essential to review every legal detail of the property, from its registry status to possible charges, easements, or urban planning restrictions. In such operations, having the support of a specialized team, like Engel & Völkers, provides extra peace of mind and efficiency throughout the process.

Registry status and property charges

Requesting a simple note from the Land Registry allows you to know if the property has charges, foreclosures, or outstanding debts. This document also confirms the current ownership and the exact registry description —essential aspects to avoid disputes and ensure that the operation is carried out with all guarantees.

Urban planning regulations and licenses

Each municipality may have specific regulations. Check that the property has a first occupancy license and complies with current regulations. This verification is essential to avoid penalties or usage restrictions, especially if you plan to carry out renovations or use the property for holiday rentals.

Energy efficiency certificate

Mandatory since 2013 to sell or rent any home, this document classifies the property’s energy consumption. In addition to being a legal requirement, its rating can influence the perceived value of the property, especially among buyers who prioritize efficiency and sustainability.

Considerations for foreign buyers

If you are not a resident in Spain, you will need a NIE (Foreigner Identification Number) to formalize the purchase. In this article we explain how to buy in Spain as a foreigner and the steps to follow.

Taxes and associated expenses

In general, the purchase taxes for a second home are the same as for a primary residence: VAT on new builds, ITP on resale properties, and IAJD, with rates that vary depending on the autonomous community.

Renovation expenses

In high-level renovation projects, construction or rehabilitation under the Passivhaus standard is becoming increasingly relevant. This model, based on maximum energy efficiency and thermal comfort, not only drastically reduces consumption but also adds differential value to the property.

Financial planning and financing options

Buying a second home involves analyzing not only the property price but also all maintenance expenses, taxes, and possible renovations. Whether you are looking for a second home as an investment or as a personal asset, financial planning allows you to maximize your assets and, if desired, make them profitable.

Mortgage conditions for second homes

Mortgages for second homes have particularities compared to those for main residences.Financial institutions usually finance between 70% and 80% of the appraised value, with terms ranging from 20 to 30 years. Interest rates are usually slightly higher, due to the greater risk assumed by banks in this type of operation.

Strategies to make your second home profitable

In addition to being a place for personal enjoyment, a second home can become a stable source of income or an asset that appreciates over time. Choosing the right strategy depends on the owner’s profile, the property’s location, and the opportunities offered by the market at any given time.

Holiday rental: requirements and licenses

Holiday rentals have become one of the most profitable formulas, especially in high-level tourist locations. Each autonomous community regulates this activity with its own rules, which may include specific licenses, rental day limits, and quality requirements.Complying with these procedures is essential to avoid penalties and ensure guest satisfaction. In high-demand areas, such as coastal destinations or prestigious rural enclaves, income can be significant during peak season. Having the support of a specialized team familiar with local regulations, like Engel & Völkers, can make all the difference.

Alternative investment options

When holiday rental is not the most convenient option, there are equally attractive alternatives. Long-term rental offers recurring income with less tenant turnover, ideal for those seeking stability.Another strategy is strategic selling, taking advantage of times of high demand or revaluation in the area to maximize returns. In some cases, the property can also be used for exclusive events or private experiences —a growing trend in the luxury market that allows monetization without compromising availability for personal use.

Choosing the location and type of property

The location directly influences both profitability and personal enjoyment of a second home.

Second home in coastal areas

Coastal areas, with their high tourist demand and leisure offerings, are especially attractive for those seeking quick returns through holiday rentals.

Second home in mountain areas

Mountain regions provide added appeal for active tourism, such as skiing or hiking, and offer a cooler climate that is highly valued during the summer months.

Rural environment as a second home

Rural areas, on the other hand, offer peace, privacy, and a connection with nature —ideal for disconnecting while also appealing to an audience looking for authentic experiences.

Frequently asked questions

Can I change a second home into my main residence?Yes, but you must meet the legal deadlines and occupancy requirements.

What additional expenses should I consider?Taxes, notary, registration, and maintenance.

Can I finance a second home if I already have a mortgage?Yes, although the conditions will be stricter.

What taxes do I pay if I sell my second home?Municipal capital gains tax and capital gains tax in personal income tax (IRPF).

Is it profitable to renovate my second home before selling or renting it?Yes, if the renovation increases value and demand; consult a specialized team.

Can I rent out my second home if I have a mortgage?Yes, unless the mortgage contract prohibits it.

Second home with the Engel & Völkers guarantee

You can start the search and valuation of your second home online, but nothing replaces expert advice. At Engel & Völkers, we have a team that offers local and personalized service, with access to exclusive high-value properties, as well as precise and updated market analysis that will allow you to make decisions with confidence. We accompany you throughout the entire purchase process, from the initial selection to the signing, so that your investment materializes with full guarantees.