Homes & money · 7 min read
Buying, renting or a right of use: which home makes sense in Spain or Portugal after 60?
Buying keeps an asset but costs heavily on day one and when you sell. Renting is flexible but insecure after a few years. A prepaid right of use gives a secure, maintained home with a clear exit.
- Best for
- Comparing housing options
- Key trade-off
- Ownership vs security and ease
- Tool
- 20-year cost chart
Most people moving south after 60 have sold, or will sell, a home in the UK or northern Europe. The question is what to do with that capital. There are three realistic ways to secure a home, and each puts your money and your peace of mind in a different place.
- €0unexpected repair bills with a right of use
- 5years: the usual limit on a Spanish rental contract
- 20years compared side by side
Buying: an asset, with costs at both ends
Buying a newly finished, good-quality apartment on the Costa Blanca or in the Algarve typically means paying transfer tax, notary, land registry and legal fees on top of the price: usually 10 to 13% in Spain and somewhat less in Portugal. That money is gone on the day you buy.
After that come community fees, local property tax, insurance and repairs, which remain your responsibility. When you or your heirs sell, there are agency fees, capital-gains and municipal taxes, and it can take a year or more to find a buyer.
Renting: flexible, but not as secure as people think
Spanish rental law gives tenants a minimum of five years (seven if the landlord is a company). After that, the landlord can decline to renew or ask for a much higher rent. Portugal is similar in practice. The stories of 'protected' elderly tenants refer to very old contracts and temporary emergency rules, not to new leases.
Renting keeps your capital free, but the money you pay is spent, and moving again in your seventies is hard.
A prepaid right of use: secure, maintained, with a clear exit
With a right of use, you pay once for the right to live in your home for a long, fixed term, plus a monthly service fee. You do not buy the property, so there is no transfer tax and no selling to do. Maintenance, the gardens and the shared facilities are looked after for you. If you leave early, the unused part is paid back to you or your heirs under clear contract terms.
“Renting buys flexibility but leaves you exposed after a few years. A right of use buys permanence without the upkeep of ownership.”
How the costs compare over 20 years
Money spent over 20 years, not recovered
| Buy | Rent | Right of use | |
|---|---|---|---|
| Money lost on day one | 10–13% taxes and fees | None | None |
| Security of your home | Full | 5–7 years guaranteed | Long, fixed term |
| Repairs and upkeep | Your responsibility | Mostly the landlord | Included |
| Leaving | Sell: months, fees, taxes | Give notice | Unused part paid back |
| What is left for heirs | The property, after selling costs | Nothing | The unused part |
Which suits whom?
- Buy if keeping property as an investment matters most and you are happy to manage it, or have family nearby to help.
- Rent if you want to try an area for a year or two before deciding.
- Choose a right of use if you want certainty, a maintained home and community, and a clean exit for you or your family.
See the numbers for yourself
Compare everyday costs in your home city with Solera, and buying or renting with Solera over 10 to 25 years.
Open the cost calculatorGeneral information only, not legal, tax or financial advice. Rules change; please take personal advice before you move. Ask us a question.