Financing a Fixer-Upper: Mortgages for Renovation Projects in Las Palmas

Many British buyers looking at older houses or flats in Las Palmas assume the mortgage will simply stretch to cover both the purchase and the building works. In practice, Spanish banks look at the two separately: the loan is secured against the property as it exists today, not against what it could become after renovation.

That does not mean renovation can never be included. Some banks will consider an additional amount for documented works, but this depends heavily on the bank, the scope of the project and your financial profile — never on a fixed percentage we can promise in advance.

Las Palmas covers the eastern Canary Islands, including Gran Canaria, Lanzarote, and Fuerteventura, known for their volcanic landscapes and year-round mild climate. Buyers are often drawn by the subtropical setting and the possibility of outdoor living outside the typical mainland Spanish seasons, including retirees and remote workers.

Airports on the main islands provide regular international connections, supporting both holiday visits and longer stays throughout the year. Property types include coastal apartments, villas, and traditional island houses, with tourism present year-round but often peaking during winter months.

What follows are measured, dated figures for Las Palmas (province) — who lives there, what homes are advertised for, how to get there and the climate — each one sourced. They help you build a realistic picture of Las Palmas (province) as you work out the budget for a Spanish mortgage.

The province of Las Palmas as a whole, not merely its capital city, had 1,171,547 registered residents on 1 January 2025, according to the INE annual census. This figure covers every municipality within the province, from its largest towns to its smallest villages. In the province of Las Palmas, 171,235 residents hold a foreign nationality, about 15 of every 100 people registered there. That is a significant but not dominant share, and it varies considerably from one town to another within the province.

On 1 January 2025, INE counted 12,622 British nationals registered in the province of Las Palmas, a real presence without being one of the largest foreign communities there. It still points to a visible, ongoing community across the province. Back in 2021 there were 13,948 registered, a higher number than today. The drop is consistent with residents moving elsewhere or simply no longer appearing on the padrón. The table below lists the largest foreign nationalities registered in Las Palmas (province) on 1 January 2025, among those INE publishes for every municipality.

A further table sets out nationalities not broken down above, among them Germans, Italians, Dutch, Belgians and Scandinavians, registered throughout Las Palmas province. Unlike that earlier table, this one uses data from 1 January 2022, the latest edition with full nationality detail.

Our price bank includes 4,501 homes for sale throughout the province of Las Palmas, with a median of €2,750/m² and a median ticket of €250,000. Both numbers land close to the €3,135/m² median of the 130 towns we track across Spain. Half of the properties currently listed are priced between €1,840 and €4,020 per square metre, with cheaper and more expensive homes on either side of that middle band.

Based on €250,000, the median asking price in Las Palmas (province), transfer tax at 6.5 % comes to roughly €16,200; add about €3,000 for notary, registry and gestoría costs and the total reaches approximately €19,200. This amount sits outside the mortgage and has to be available in cash before completion. All prices shown are asking prices from adverts active on 2026-11-01, not completed sales. The price eventually paid is always a matter of negotiation, shaped by condition, precise location and orientation.

Below is a comparison of the towns we follow in Las Palmas, covering inhabitants, foreign residents per 100 inhabitants and median asking prices per square metre across the province.

In 05/2026, Las Palmas (province) had an estimated 26,998 tourist homes according to INE's experimental platform-based statistic, equivalent to 115,284 bed places and roughly 23 per 1,000 residents. The level is moderate, though letting a home to tourists still needs a regional licence.

Commercial airports within the province of Las Palmas include Aeropuerto de Gran Canaria (LPA), Aeropuerto de Lanzarote (ACE), Aeropuerto de Fuerteventura (FUE). Which one suits best depends on routes available from your home airport at the time of year you travel, so this is worth checking directly. These weather readings come from Las Palmas de Gran Canaria, the capital of the province, so inland areas, higher ground or other islands within the same province can show noticeably different conditions. Winters here are mild: the January mean is 17.9 °C, with an average daily minimum of 15.0 °C, while August averages 24.6 °C with a daily maximum around 27.5 °C. Outdoor life stays comfortable through most of the colder months. The climate here is dry, with around 151 mm of rain annually falling on about 22 days. Source: the 1981-2010 climate normals published by AEMET, the state weather agency, for its Gran Canaria Aeropuerto station, some 24 km from here; local conditions can differ, especially inland or at altitude.

INE recorded 13,337 home sales in Las Palmas (province) in the year to 07/2026. That level of activity typically gives buyers more comparables to judge a fair price and a broader pool of properties to choose from. These figures describe the province of Las Palmas as a whole and can change considerably from one town to another, and from one property to the next. Tell us what you are looking for and we will go through the numbers together.

The transfer tax on a resale home is set by each Spanish region. In Las Palmas the general rate is 6,5 %, and on top of it come notary, land registry and gestoría (roughly one more percent). On a new build you pay 10 % VAT plus stamp duty instead of the transfer tax. This money is not lent by the bank.

When a bank in Spain studies a fixer-upper in Las Palmas, its valuer inspects the property as it stands. The valuation report, not the buyer's renovation dream, sets the ceiling for what the bank considers lending against. If the building needs a new roof, rewiring or structural repairs, that is treated as a separate cost to plan for, not an automatic extra on top of the mortgage.

Some lenders will study a request that bundles purchase and works together, particularly when the renovation is modest and well documented. Others prefer to finance only the purchase and leave the buyer to fund the works separately, perhaps later, once equity has built up. The exact share of financing available, and whether works can be included at all, depends on the bank, your country of residence and your overall profile — there is no fixed figure we can quote.

If you want a bank to factor renovation into the loan, expect to be asked for more than a rough estimate. A detailed, professional budget — ideally from a licensed builder or architect — carries far more weight than a verbal plan. Banks in Spain are used to seeing a detailed renovation project with itemised costs, and the more precise this is, the easier it is for them to assess.

Alongside the renovation paperwork, UK buyers go through the same income and identity checks as any non-resident applicant. The list can vary slightly by bank, but it typically includes recent proof of earnings, a record of your tax position in the United Kingdom, and evidence of your existing financial commitments.

Because the United Kingdom uses the pound rather than the euro, the cost of both the purchase and any renovation work can shift with exchange rates between the moment you budget and the moment you pay. It is worth tracking this separately from the mortgage itself, since transfers for building costs often happen in stages over months.

Longer term, Spain and the United Kingdom have a double taxation agreement, and a local tax adviser should confirm how any future rental income or capital gain from the renovated property must be declared, both in Spain through the annual non-resident return (Modelo 210) and to HMRC. If you later sell, the buyer will withhold 3 % of the price on account of your Spanish tax. And since the Golden Visa route ended on 3 April 2025, buyers should plan their stays in Spain around the standard 90 days in any 180-day period available without a visa, applying for a longer-stay permit if the project requires more time on site.

At Colibrí Finances we compare more than 20 Spanish banks to see how each one treats a property that needs work, and whether a particular lender is open to including documented renovation costs in the loan. We prepare the file, translate what each bank asks for, and follow the process through to the notary.

The study is free and without obligation, and we work in English. our fees are agreed in writing beforehand, and we support you all the way to signing.

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.