Procedures for building or renovating a property in Spain

Are you thinking of building or renovating your house or flat in Spain? Read on to find out everything you need to know about the procedures involved in building or renovating a property in Spain. 

Due to the coronavirus pandemic, many families found themselves in need of a new home with more square metres.

Having an outdoor space to enjoy – for example, with a swimming pool – and thus cope better with the current situation of isolation has become an essential requirement. 

That is why buyers have become more discerning, with specific requirements, leading them to consider the possibility of buying a plot of land and building a completely bespoke home.

So, is it possible to build your own house in Spain? Planning a new home, designing it and finding the right people to build it is an option that more and more international buyers are considering.

Buying a plot of land with a view to building a bespoke home is an attractive option. However, it is quite unusual in Spain. If you are a foreigner, you may find that the process is quite different. 

Choosing this route can be complicated and is not usually a quick process. For this reason, it is advisable to seek the advice of a professional, draw up a detailed plan and ensure that you secure the best possible financing. 

Procedures for building a house

There is a huge surge in demand for plots of land that meet buyers’ requirements in Spain. Below, we present a step-by-step guide to the administrative and legal procedures required to build a house in Spain:

Choosing the right plot of land

The first thing you should do before starting the administrative and legal procedures involved in renovating or building a property in Spain is to do plenty of research. You need to start looking for the perfect plot of land on which to build your new home. 

When looking for a plot of land in Spain, you will generally come across two types of land. These are:

• Rural land: a type of land that does not usually have the necessary infrastructure (electricity and water supply, sewerage, etc.) and is not suitable for building on. 

• Urban land: this is what you need to look for if you want to build a house in Spain; it already has the necessary infrastructure.

Once we have chosen the plot of land, we must apply for planning permission. This is a permit required, usually by the local authority, for any kind of building work. 

Seek expert advice

Once you have chosen the plot of land on which to build, you will need to seek professional advice. You should contact an architect to have them inspect the plot and assess its suitability.

In other words, you need to carry out a soil assessment (geotechnical survey). You must assess whether it has good access, the right orientation, whether it is the right size, whether the plot has sufficient surface area for building, etc.

The architect commissioned will need to draw up the plans once the site has been assessed and a decision has been made as to whether building is possible. These plans must be approved by the Institute of Architects.

The architect will also be able to provide a general estimate of the construction costs and, of course, will be in charge of the project.

It is also advisable to seek the advice of a solicitor. They will assist and advise you at every stage of the process and guide you on the steps to take at each stage.

The preliminary steps prior to construction

You will need to visit the Land Registry. You will need to request a basic title search to find out whether the land is subject to any encumbrances or outstanding debts. This is essentially a brief legal report on the property.

The next step will be to contact the Land Registry to provide a descriptive and graphical cadastral certificate for the plot of land.

Finally, you will need to contact the relevant local council to check the current planning regulations. This is essential, as, depending on the legislation, the design of your future home could be subject to significant changes (height, number of storeys, etc.).

Funding to build a house

Banks do not usually grant mortgages for the purchase of land, so it would be best to apply for a loan.

However, generally speaking, in Spain You can apply for a self-build mortgage which will be used to finance the construction of the house.

A self-build mortgage provides an advance payment to finance the construction of a home. It is normally divided into three parts: 

• The initial phase (following approval, so that work can begin).
• The next stage is certification (as construction continues).
• The final stage is the completion stage (once construction is complete).

Beforehand, we must submit the certificate of land ownership, the building permit, the project plans, the construction budget and the energy efficiency report to the organisation granting us this loan.

Obviously, the customer must meet the creditworthiness requirements in order to obtain the loan.

Planning

It usually takes around two years to complete a self-build project in Spain.

To prevent the project from dragging on and costs from spiralling, it is essential to draw up a detailed budget and timetable. Furthermore, careful coordination will be required amongst the professionals (architect, construction team, etc.) involved in each stage.

Once the work has been completed, it is necessary to apply for the first-occupancy licence, which verifies that the building complies with the legal requirements for use as a dwelling.

Furthermore, the certificate of fitness for habitation confirms that the building meets the conditions required for it to be inhabited.

So far, we’ve outlined a number of points to bear in mind if you’re thinking of building a house in Spain, but what if you’d rather renovate rather than build from scratch? Read on!

Legal and administrative procedures for renovating a property in Spain

There are a limited number of new plots available for new-build properties, as these are determined by the town’s long-term plans. This means that renovating a property in Spain is a very attractive prospect.

As a result of this constraint, there are fewer and fewer plots of land available, and the prices for purchasing them are rising steadily. This is particularly evident with the recovery of economic activity in northern Europe following the pandemic.

That’s why renovating your home to suit your tastes can be a very good option, as well as being cheaper.

What alterations are permitted to your home under the regulations?

If the property is situated on urban land, building is usually permitted. However, building on rural land is not usually permitted. For this reason, the project must be justified in accordance with local and regional regulations.

We must bear this very much in mind in order to consider the following question.

Can you extend your home?

If your property is on urban land, there are fairly clear rules regarding how many square metres you are allowed to build. One example is the percentage of the total plot area, the surface area…

In the specific case where your house is smaller than the permitted size, you can extend it without any problem. If your property is situated on rural land, it is almost certain that you will not be allowed to extend it.

These projects, to a greater or lesser extent, usually involve a number of professionals. These include architects, designers, painters, plumbers, electricians, etc. Depending on the renovation we wish to carry out, we will need to call on one group or another, but…

What permits do we need in each case? 

Each local authority has its own regulations, and it is up to each local authority to decide whether a licence, permit or similar authorisation is required to carry out building work.

However, the procedure followed by most local authorities involves applying for planning permission (whether major or minor) and submitting a prior notification to the authorities.

A major building permit is required when the structure of the property is altered, or its layout or floor area is changed. You will need to have a renovation plan signed by an architect and stamped by the Institute of Architects. 

Each local council sets its own criteria. However, it is usually the case that, along with the project proposal, you must submit the relevant application form, the applicant’s NIE and proof of payment of the fees.

For minor repairs, the fitting of doors and windows, and adaptations for people with disabilities… a minor works licence is required.

You must notify the local authority in advance of any renovation work on the property. You will need to attach the relevant floor plan and quotation for the renovation, a description of the work to be carried out, and the self-assessment form for the relevant charges.

Normally, for any kind of renovation, however small, the residents’ association should be informed, in order to avoid any potential problems arising from the disruption it may cause.

This has been a brief overview of the procedures involved in building or renovating a property in Spain. We hope you’ve found it helpful!