Spain Explained

The cost of building your own home in Spain

You perhaps have in mind exactly what you would like your ideal property in Spain to look like, where it should be situated and the dimensions and specifications it should include. Trouble is, one doesn’t seem to have been built yet. The solution? Build one of your own.

Property programmes showing entrepreneurial individuals creating their new home from foundation to fixtures have perhaps contributed in the interest that there is in starting from scratch and building your own home in Spain.

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There are attractions to taking control including removing the profit of the promoter and avoiding some of the risk associated with buying from one. However, building your own property in Spain comes with risks of its own and you need to have calculated your budget carefully before setting out.

According to El Confidencial, the cost of buying land has dropped and an increasing number of people are taking advantage of this. However, they warn, it is important to calculate all the potential costs before embarking on a build-it-yourself venture.

Calculating the cost

Although the majority of costs lie with purchasing the site and the building work itself, there are other on-costs that you can easily neglect to build into your calculations.

Of the total cost, you can expect to pay:

  • 45% for purchasing the plot
  • 40% for the building work
  • 8% for the professional fees
  • 7% for taxes and licences

It is important that you select your site carefully. It might sound obvious but you must check with the local municipality in Spain that you can build there and what restrictions there might be in terms of dimensions of the building. You should check the current ownership of the land and that the specifications match the registration recorded in the Land Registry.

You need to consider your utilities too. Is your plot accessible from a public road? Are services available including water supply, sewage and electricity?

On top of the building costs and the price of the plot you must add the costs of the Deed of sale, notary fees and registration in the Land Registry in Spain. This usually comes to around 0.5% of the purchase price.

There will be Transfer tax to pay of between 7% and 9% and if you are a company you will have to pay 21% in VAT. There will also be VAT to pay on the building work itself that will come to around 10% of the contract budget. VAT (IVA) also applies to architects’, technicians’ and builders’ fees all at a rate of 21%.

Overall it is estimated that the cost of building the house will come in at 750-900 euros per square metre of house built. The final cost can come in higher as there is a tendency for you to pick higher quality building materials when building for your own use. The individual builder will not necessarily benefit from economy of size either.

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Make sure it’s legal

However expert you feel you may be, engaging an architect in Spain is essential. You must have the correct licences to go ahead and apply for provisional water and electricity supply whilst the property is being built.

Reading through this, it is perhaps not surprising that we recommend that you engage a good solicitor with experience in conveyancing and property law and taxes in Spain to ensure that you take the correct steps in legalising your new home. Having put in so much blood, sweat and tears into its construction the last thing you want is to be told it’s got to come down.

It might sound like an obstacle race to construct your own home and it’s certainly not for the faint hearted, however, it could still be a cheaper way to ensure that you get exactly what you envisaged from your Spanish dream home over the years.

More Information

El Confidencial: ‘Cuánto cuesta construirte tu propia casa?

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10 comments

Hans Hjalmarson Lamhauge

19 March, 2016 1:45 pm

Hi.
Hi.
Thanks for all the good news you already have given me concerning to build a house in Torrevijeca, Alicante, Spain.
May I ask you within what you are sharing within the cost to build a house in Spain, arround 750 to 900€ for each square meter.
Question Nr. 1 is it in-calculated the ground to build on for that price, or is it without the ground to build on?
Question Nr. 2 What about the Fresh Water system, to the toilet kitchen and etc. etc.etc is it in that price…….???
Question Nr. 3 Electricity is it in that price?????
Question Nr. 4 Tha warmt when it is the cold season? is it in that price??
Question Nr. 5 What is in-calculated in the price 750 to 900€ pr square meter?????

Thanks for I can ask you this questions.

Best Regards
Hans Hjalmarson Lamhauge

Suzanne O'Connell

22 March, 2016 9:07 am

Hi Hans

Hi Hans

Thanks for your enquiry. What is and isn't included will depend upon the builder and will also depend on the location you choose. For example, you will generally get more for your money if you choose a plot that is further inland. Builders will vary on what is and isn't included in the price. However, it is usual to include connections to mains services in the price and you might also expect some form of heating/ cooling system. 

 

David Clarke

1 November, 2016 5:11 pm

Hi,
Hi,
I am thinking of building a villa in Mallorca (Calvia area), and would be interested to know would the build costs here be much greater and if so by roughly how much?
Also would you have a rough estimate of building costs per sqm for a basement .

Thanks

Suzanne O'Connell

2 November, 2016 11:10 am

Hi David

Hi David

As a rough guide it's usually around €1,000 per square metre to build. However, this does depend on the region you have chosen and even the area within that region. If you wish to include a basement then soil type will be an important factor too. 

Bahman Ashkan Far

22 February, 2019 7:29 am

Hi,
Hi,
If I build a house through an architect, can I inspect and register the house through another architect or must the house be inspected and registered through the same architect?
Regards
Bahman

Suzanne O'Connell

27 February, 2019 7:22 am

Hi Bahman

Hi Bahman

The architect who signs the project and the technical architect must review the work to be able to verify that it is done according to the project carried out. You will also have to sign a certificate of completion of work for the town hall and the notary and be able to declare the works in writing. However, you can hire another independent architect to check the works. You will have to look at the construction contract to see if you have limited access to housing during construction.

 

A O’Leary

8 May, 2020 2:46 pm

Hi
Do the local authorities inspect the building works or is only done through the technical architect.
In the uk a local authority inspector does the inspection
So does Spain have a different system

Regards Steve

Oscar Paoli

17 May, 2020 8:58 pm

Hello there,

The inspection or not of a technician depends on the City Council itself. In other words, it is not mandatory, but some municipalities carry it out.

When the works are finished, the architect certifies by means of the “Certifado final de obra” that the works have been carried out according to the project and license. After that, the City Council may carry out an inspection. It is not usual but it could happen. In some municipalities, these inspections are always carried out.

With best regards,

Ábaco Advisers

Sergiy Lyevashov

14 May, 2020 10:43 pm

Hi guys,
I would like to embark on building villa in Fuerteventura, do you have any advise on potential cost per square meter there? Any specific points as well? Thank you, Sergio

Oscar Paoli

17 May, 2020 8:50 pm

Hi Sergio,
Sorry, not much information on this area regarding building, sorry for the inconvenience.
Kind regards,
Ábaco Advisers