Real Realty Spain
Apr 30, 2023
How much does it cost to build a house in Spain?
Foreigners have the right to purchase land in Spain for residential real estate development, using an individual architectural design or standard project from a developer. The first step in the process is to buy a land plot, which can fall under three categories:
Urbano: intended for residential buildings and construction can begin immediately after purchase.
Urbanizable: capable of being transformed into a city, but additional costs are required.
No urbanizable: rural land, often of architectural value, where housing construction is generally prohibited.
It's essential to determine whether there are any building restrictions depending on the land type. Land plots in Spain can cost as low as €50,000, with some exciting offers in the provinces of Catalonia and Valencia. Once the land is acquired, individuals must pay taxes, which can range from 6-10% of the land's value for individuals and up to 21% for legal entities. The services of an architect will also be required, and their cost can range from 8 to 15% of the project's price.
The architect will calculate the cost of materials (precious ejection material – PEM), which will determine the amount of taxes to be paid in the future, ranging from 0.6 to 1%. The next step is developing a specification (Memoria de calidades), which specifies the types of building materials used and determines the construction costs.
Suitable building materials, such as metal, concrete, and wood, are chosen depending on the type of house. Building materials in Spain typically cost around €1000 per 1 m2 of living space, including finishing of the floor, walls, and ceiling.
Before construction, the project and related documents must be submitted to the architectural department of the City Hall for obtaining a construction license. Technical supervision specialist services are necessary to control the work, and a topographic and geotechnical study of the area must be conducted before construction.
Individuals can either serve as the foreman or hire a contractor, and upon completion of the construction, a certificate of construction completion and a license for the first placement will be issued by the technical architect and municipal administration, respectively. The cost of the construction license is about €500, while that of the license for the first placement is around €250.