You can buy great property in Spain or build a house on your own for €100,000 without taking into account the cost of the land it is going to be situated on. What does this cost consist of?
Content:
- Purchase of land for development
- How much is a land plot?
- Execution of the contract of sale. Payment of taxes
- Collaboration with an architect
- Drawing up a specification
- Construction material costs
- Obtaining a construction license (licencia de obra mayor)
- The work of a technical supervision specialist (Aparejador)
- Study the area before construction
- Contractor Services
- Obtaining a certificate of construction completion and a license for the first placement
- Notary services
- Approximate estimate for house construction in Spain
- Where can I find more information?
Purchase of land for development
Today foreigners have the right to purchase a parcel of land and build any kind of residential real estate in Spain according to an individual architectural or standard project of the developer. The first item on the list of an outlay is the purchase of a land plot. The land in Spain is divided into three categories:
- Urbano. It is designed for construction of residential buildings. Once it’s bought, you are free to start construction whenever.
- Urbanizable. This kind of land can be given a status of a city and begin self-development. However, keep in mind that additional costs are required for such transformation.
- No urbanizable. Rural land that may be of architectural value, so it is usually prohibited to settle any kinds of housing on it.
Also, depending on a chosen type of land, it is important to know whether there are any restraints on building residential real estate.
How much is a land plot?
A piece of land in Spain can be purchased at a price of €50,000. For instance, a decent land plot of 803 m2 in the municipality of Lloret de Mar (Serra Brava, Catalonia) in a quiet concealed place surrounded by greenery goes for €50,000. There are also several interesting offers in the province of Alicante (Valencia). For example, a piece of land of 2300 m2 located 40 minutes away from the Alicante-Elche Miguel Hernández Airport would cost you €84,000. It is ready for further development, as this place already has water, electricity, gas supply line and a high-speed internet provided. On a piece of land of such an area you can build a cottage with a kitchen, living room, three bedrooms and two bathrooms.
If you want to get a house with a sea view, then the price will be a bit higher, starting from €100,000.
Execution of the contract of sale. Payment of taxes
After the acquisition of land, individuals are required to pay taxes in the amount of 6–10% of its value, meanwhile legal entities have to pay up to 21%.
Collaboration with an architect
Once you purchase the land, your next step is to find an architect who will calculate the cost of materials (precious ejection material – PEM). In the future, the amount of taxes is going to depend on PEM: from 0.6 to 1%. After drawing up the project, the architect must apply to the College of Architects for the design of the project (visado por el colegio de arquitectos). However, after its approval, it will be difficult and rather costly to make adjustments to it. Architect's service costs range from 8 to 15% of the project price.
Drawing up a specification
The next step is the development of specification (Memoria de calidades) which the construction costs will depend on. It specifies the types of all used building materials, the manufacturer of plumbing, the colouring of materials and other parameters.
Construction material costs
Obviously, suitable building materials are chosen depending on the type of house. The most popular types of houses in Spain are villas, cottages, chalets and bungalows.
The best materials for construction
The material is one of the vital parameters affecting the total cost of housing. The following are the most used materials for construction in Spain.
- Metal. The metal frame is always durable and reliable. The price for 1 m2 is about €95.
- Concrete. Must be with high endurance and fire safety. The price per 1 m2 is €130.
- Wood. An environmentally friendly and durable material. A bit more pricy — 1 m2 is €195.
On average, the price of good quality building materials is around €1000 per 1 m2 of living space (this also includes finishing of the floor, walls and ceiling).
Obtaining a construction license (licencia de obra mayor)
The project and related documents must be submitted to the architectural department of the City Hall. The cost of a basic construction license is about €500.
The work of a technical supervision specialist (Aparejador)
Next, you will have to choose a technical architect who is going to control the process of work. His services usually cost about 30% of the cost of the architect's services.
Study the area before construction
Before construction, you need to make sure that the land is suitable for building up. To do this, a topographic and geotechnical study of the area must be conducted. Regardless of the area, the study will cost you about €1000. It is highly recommended to buy land where this kind of study has already been conducted by the seller and is attached to other documents for the plot.
Contractor Services
It is necessary to decide who will be engaged in construction. If you are confident in your own skills and abilities, you can perform the role of a foreman: monitor the progress of construction, find workers and negotiate with them. On the contrary, if you contact a contractor, you will definitely save yourself from the hassle. However, cooperation with the contractor might make you tighten your belt in the end because the final spending will increase by 50%.
Obtaining a certificate of construction completion and a license for the first placement
After you make sure that everything looks perfect, the technical architect (aparejador) will issue a certificate of construction completion (Certificado de final de obra). Right after that, the municipality administration will need to issue a license for the first placement (Licencia de Primera occupacion), which will cost you about €250. This document will confirm that the house is safe and ready for you to move in.
Notary services
In order to register a house as a property, you need to receive legal documents (Impuesto de Actos Juridicos Documentados), which require a tax payment of 0.5% of the total house value. Also, keep in mind that you are obliged to pay from 0.5 to 2% of the property value to register it.
Other notary expenses include:
- VAT (IVA) – 10%;
- notary expenses (Notario) – from 0.5 to 1% of the unit cost.
Approximate estimate for house construction in Spain
Let's calculate how much a small 60 m2 house might cost you.
Total expenses may look like this:
- Construction is €60,000 (assuming that the average cost of building materials for 1 m2 is €1,000 x 60 m2).
- Taxes will take about €15,000.
- Architect's services – about €9,000.
- Services of a surveyor – €1,000.
- Payment of licenses – €3,000.
- Notary services and registration – €3,000.
- Total: €91,000.
This total doesn’t take into account the price of land, as well as additional costs, for example, interior designer services, landscaping or pool installation.
Turnkey contracts in Spain usually cost €1,300 per 1 m2, which includes construction and finishing work. In this case, the cost of building a house of 60 m2 alone will be around €78,000.
Where can I find more information?
If you are thinking about building a house in Spain, please contact us via an online chat or phone numbers listed on our website. We will provide information about all available land plots for sale, tell you more about the nuances of construction, obtaining permits and choosing qualified specialists. Your dream of owning your own cottage or villa in a warm, peaceful country is quite feasible!