Formalities for building or renovating a house in Spain

Do you want to build or renovate your house or flat in Spain? Stay to read this post and solve all your doubts about the procedures to build or renovate a house in Spain. 

Because of the coronavirus pandemic, many families felt the need for a new house with more square metres.

Having an outdoor space to enjoy, e.g. with a swimming pool and thus better cope with the current situation of isolation, has become a prerequisite. 

This is why buyers have become more demanding, with specific requirements, making them consider buying a plot of land and building a fully customised home.

So, is it possible to build your own home 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 and then building a custom-built house is an interesting alternative. However, it is unusual in Spain. If you are a foreigner, you may find the process quite different. 

Going down this route can be complicated and is often not quick. It is therefore advisable to have a professional advisor, do some detailed planning and ensure that you get the best possible financing. 

Procedures for building a house

There is a huge boom in the search for buyer-friendly plots of land in Spain. Here is a step-by-step guide to the administrative/legal procedures required to build a property in Spain:

Choosing the right land

The first thing you should do before taking the administrative/legal steps to renovate or build a home in Spain is to do a lot of research. You need to start looking for the perfect plot of land to build your new home. 

When looking for land in Spain, you will generally find two types of land. We have:

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

• Urban landThe Spanish government has already provided the necessary infrastructures for building a house in Spain.

Once you have chosen the land, you need to apply for a Licencia Urbanística. This is a permit required, usually by the local administration, for any type of construction. 

Seek expert advice

Once you have chosen the land on which to build, it is necessary to seek professional advice. An architect should be contacted to examine the land and study the possibilities.

In other words, you have to make an assessment of the soil of the site (geotechnical study). You have to assess if it has good access, orientation, if it is the right size, if the land has the right surface to build on, etc.

The contracted architect will have to draw up the project once the land has been assessed and decide whether it can be built on. This project must be approved by the College of Architects.

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

It is also advisable to seek the advice of a lawyer. He or she will help and advise you at all stages of the process and will indicate the steps to be taken at all times.

Preliminary steps to construction

You have to go to the Land Registry. You will need to request a nota simple, to find out if the land has any previous charges or debts. This is basically a brief legal report of the property.

The next step is to contact the Cadastre to provide a descriptive and graphic cadastral certification of the land.

Finally, it is necessary to go to the corresponding town hall to consult the town planning regulations in force. This consultation is essential, as, depending on the legislation, the design of the future house could undergo considerable variations (height, number of floors...).

Funding to build a house

Banks do not normally provide mortgages for land purchases, so it would be best to apply for a loan.

However, in general, in Spain you can apply for a self-builder mortgage which will be used to finance the construction of the house.

The self-build mortgage lends money in advance to finance the construction of a home. It is usually divided into three sections: 

• The initial phase (after approval, so that work can begin).
• The next phase is the certification phase (as construction continues).
• The last phase is the completion phase (once the construction is finished).

Previously, it is necessary to present to the entity that grants us this credit the certificate of ownership of the land, the building permit, the project, the execution budget and the energy efficiency.

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

Planning

The time needed to carry out a self-build project in Spain is usually about two years.

In order to avoid a prolonged and costly project, it is essential to carry out a detailed planning of the budget and the timetable. In addition, a careful coordination of the professionals (architect, construction team...) involved in each of the stages will be necessary.

Once the work has been completed, it is necessary to apply for the licence of first occupationwhich verifies that the construction complies with the legal requirements for use as a dwelling.

Likewise, the certificate of occupancy certifies that the building meets the conditions for living in it.

So far, we have outlined a number of points to consider if you want to build a home in Spain, but what if you prefer to renovate rather than build new? Read on!

Legal administrative formalities for renovating a property in Spain

There are a limited number of new plots available for new construction, as they are determined by the city's long-term plans. This means that refurbishing a property in Spain is a very attractive proposition.

As a consequence of this constraint, fewer and fewer plots are available and the prices for acquiring them are getting higher and higher. This is especially the case with the return of economic activity in Northern Europe after the pandemic.

Therefore, renovating your home to your own taste can be a very good option, as well as cheaper.

What modifications are possible in your home according to the regulations?

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

This must be taken into account in order to be able to consider the following question.

Can you extend your home?

If your property is on urban land, there are quite clear rules about how many square metres you can build. An example is the percentage of the total plot area, the surface area...

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

These interventions, to a greater or lesser extent, usually involve many professionals. Some of them are architects, designers, painters, plumbers, electricians, etc. Depending on the reform we want to carry out, we will have to resort to some or others, but...

What permissions do we need in each case? 

Each municipality has its own regulations, and it is up to each local administration to decide whether a licence, permit or similar is required for renovations.

However, the steps followed by most municipalities are to apply for building permits (major or minor) and prior notification to the administration.

A building permit is required when the structure of the property is modified, or its distribution or surface area is altered. You will need to have a reform project signed by an architect and stamped by the Colegio de Arquitectos. 

Each municipality establishes its own criteria. However, what is common is that, together with the project, you present the appropriate application form, the applicant's NIE and proof of payment of the fees.

For small repairs, installation of doors, windows, adaptations for people with disabilities... a minor building permit is required.

Prior notification must be made to the administration regarding the renovation of the property. The corresponding plan and budget for the renovation, a description of what is going to be done and the document for the self-assessment of the corresponding fees must be attached.

Normally, for any type of refurbishment, even a small one, the residents' association should be informed in order to avoid possible problems due to the inconvenience it may cause.

This has been a brief overview of the procedures for building or renovating a house in Spain. We hope it has helped you!