Second Home: Everything You Need to Know (2026)

In Spain, acquiring a second home, whether by the sea or in the countryside, represents one of the most cherished dreams for many. It's worth noting that our country has one of the highest numbers of second homes, making this dream a reality for numerous owners. In this article, we offer clear and concise information to clarify any questions on this topic.
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What is considered a second home?

A second home, referred to by many as "holiday home", is a property not used as a primary residence, meaning it is not permanently inhabited. It is an additional property acquired after already owning a main home.

This second home can be used for personal leisure, as a holiday home, or as an investment for subsequent rental. Generally, these properties are acquired with the purpose of enjoying holiday seasons and weekends.

Regardless of the specific use or location, the second subsidized housing, is distinguished by its separate and additional nature to a first home.

What are the requirements for investing in a second home?

The requirements for obtaining a reverse mortgage for a second home are stricter than those required for a primary residence. The main criteria are detailed below:

1. Owning a primary residence: it is essential to own a habitual residence.
2. Banks require proof of financial stability: to demonstrate job stability and high income in order to secure the mortgage. This type of mortgage typically has a shorter repayment period, ranging from 20-25 years.
3. Have sufficient savings: mortgage financing typically covers between 60% and 70% of the property's value; therefore, you'll need extra funds to cover the difference.
4. No defaults or outstanding debts: it's essential to maintain a clean credit history.
5. Comply with legal purchase and sale procedures: including tax payments and registration in the Property Registry, which are the same procedures required for purchasing a primary residence.

Can you buy a second home with a mortgage?

The answer is YES, you can apply for a new mortgage independent of your first one, or extend your current mortgage, but keep in mind that these types of mortgages for second homes have higher interest rates and, as we mentioned earlier, shorter repayment periods.

It's important to know that banks consider a second home a higher- risk product, because in case of default, the primary residence (first home) takes payment priority. 

Can a second home be rented out?

Of course, renting out a second home is a viable and attractive option. Many owners acquire properties on the beach or in the mountains with the intention of renting them out. In fact, statistics reveal that 41% of second home buyers consider this acquisition a strategic investment.

A second home can be rented out year-round, which allows for stable income generation, provided the owner does not plan to use it personally during that period. Alternatively, if the owner wishes to enjoy their property during certain seasons, they can choose to offer it as a vacation rental. This option allows for monthly income during periods when the property would otherwise be vacant.

Both options are effective for covering fixed costs associated with a second home, such as property taxes and miscellaneous community fees. Furthermore, profitability can be considerable, depending on the location and characteristics of the property.

How is a second home taxed?

Second homes or vacation properties are declared as real estate not allocated to economic activities, and their taxation is different from that of a primary residence, and must be declared in the annual IRPF at a cadastral value of 2%or 1.1% if the assessed value has been reviewed in the previous decade.

Remember that the cadastral value, of the land and constructions, is a value objectively established for each real estate property based on real estate cadastre data.

In addition to this, the second home must annually declare and pay the Property Tax (IBI).

Advantages of a second home

Acquiring a second home can be a significant investment, which must be weighed against the benefits it generates. These include:

• Asset growth: this investment diversifies your assets and increases personal wealth. It can appreciate over time.
• Having a place always available for vacations: no longer needing to worry about finding hotels or tourist apartments.
• Saving money: by not having to pay for accommodation during vacations, you avoid lodging expenses, which are considered 34% of the vacation budget.
• Quality accommodation: you will have a home equipped according to your personal tastes and needs.‍
• Additional income: if you decide to rent out your second home, you will have additional financial benefits. Many enjoy their home in the summer and rent it out for the rest of the year.

Disadvantages of a second home 

While having a private place for summer holidays can sound very attractive, it is also necessary to evaluate the pros and cons. We discuss the latter below:

• Payment of additional income tax: owning an additional property also means paying more taxes, such as Property Tax (IBI), which is not deductible from income tax unless the property is rented out.
• Increase in fixed expenses: you will need to pay for utilities, community fees, and property taxes.
• Without renting it out, it generates no economic return: having a second home empty most of the year is like keeping money under the mattress.
• Difficulty managing a mortgage: financing is usually up to 70%, so initial capital is required to pay the rest.
• Risk of theft and illegal occupation: it is necessary to invest in an effective security system for greater peace of mind.

Tips for buying a second home

Given that acquiring a second home is a significant financial decision, it's essential to evaluate everything in advance and plan for the future to avoid jeopardizing your financial health.

The first thing to do is assess your savings. You need to have at least 20% of the home's value before applying for a mortgage. Additionally, have funds available for utility payments such as electricity, water, gas, and internet.

When looking for a second home, you should check its overall condition. You might need to make costly renovations in the short term. At the same time, investigate if there are any outstanding debts, such as local taxes and other expenses.

Finally, explore various banking options, evaluating interest rates and loan terms in years, to apply for the most suitable second home mortgage .

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Conclusion 

Don't forget that the conditions for a second home mortgage are more demanding. Ideally, your first mortgage should be paid off; however, a good credit history might be enough.

Second homes tend to appreciate in value over time, and if they are in a good area and in good condition, you can sell them and get a higher and immediate return.