If you are planning to build a home in Spain, it is essential to follow the right steps and be well prepared. This process can range from buying the land to getting the right permits and finding the right contractor. Here you can read all about the different stages you go through when buying land and building your dream home in Spain.

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Phase 1: Preparation & Orientation

1. Determine location
Start by determining the location of your future home. Will you choose a coastal location or a rural setting? Consider accessibility, amenities and proximity to town.

2. Check the zoning plan
It is important to check if the land is suitable for construction. You do this by consulting the zoning plan (Plan General de Ordenación Urbana, PGOU) of the municipality. If the land qualifies as "suelo urbano," it can be built on. If it is a rustic (suelo rústico) land, the area must be at least 10,000 m2 to be eligible for construction.

3. Draw up budget
Make sure you draw up a detailed budget, including the cost of the land, construction costs, permits, taxes and incidental expenses. Keep in mind that land costs can vary depending on the location.

4. Engage a local lawyer (abogado)
It is highly recommended to engage a local lawyer who specializes in real estate. They can check not only the legal documents, but also the cedula urbanística (the provisions of what may or may not be built on the land). This prevents legal problems later.

5. Arrange NIE number
You need an NIE number (Número de Identificación de Extranjero) for all official transactions in Spain. This is your tax identification as a foreigner and is essential for buying property or applying for permits.

Phase 2: Purchase of the Building Plot

1. Legal Due Diligence
Before finalizing the purchase, perform legal due diligence. Check ownership, debts and restrictions on the land. Your attorney will help you research the ownership history and any legal status of the land.

2. Sign purchase deed at notary (Escritura Pública)
The purchase deed is signed at a notary and must then be registered at the land registry (Registro de la Propiedad).

3. Registration in the land registry
Make sure the land is registered in the land registry so you are registered as the owner.

Phase 3: Design & Permits

1. Hire architect
An architect is necessary for the design of the home and application for permits. Make sure the architect is a colegiado (licensed architect).

2. Get construction drawings done (Proyecto Básico + Ejecutivo)
The architect will prepare the construction drawings, both the basic design and the execution project, detailing how the building will look.

3. Apply for a building permit (Licencia de Obra Mayor)
Request a building permit from the municipality. This is an important document before construction can actually begin.

4. Approval of Order of Architects (Colegio de Arquitectos)
The order of architects must approve the building plans, which is necessary to proceed with the application for permits.

5. Possible environmental assessment or archaeological report
In some cases, an environmental assessment or archaeological report may be required, depending on the location of the parcel.

Phase 4: Construction Phase

1. Select contractor
It is crucial to choose a reliable contractor with experience in the region. The contractor should be able to build a quality home, taking into account local building codes.

2. Draft contract
Draft a detailed contract with the contractor, including schedules, penalties for delays and guarantees.

3. Start construction under the supervision of architect and technical architect
Construction will be carried out under the supervision of the architect and technical architect to ensure that plans are executed correctly.

4. Have progress checked
Order interim checks on construction progress. This can be done by a building inspector or architect who certify the quality and progress of the work.

Phase 5: Completion & Tender

1. Receive Certificado Final de Obra from architect
After construction, you will receive a certificate of completion from the architect, the Certificado Final de Obra.

2. Application for habitability permit (Licencia de Primera Ocupación)
This document is needed to prove that the home meets safety and habitability standards.

3. Registration as a home in land registry
The home must be registered with the land registry to be officially recognized as a home.

4. Payment of municipal taxes and connection fees
Don't forget to pay the municipal taxes and connection fees for water, electricity and other utilities.

Phase 6: Connections & Finishing

1. Connect to water, electricity, sewer, internet
Make sure your home is properly connected to the water, electricity, sewer and internet.

2. Furnish home/outdoor space
As soon as the home is ready, you can begin furnishing and refurbishing the outdoor space.

3. Arrange insurance (building insurance, liability)
Make sure you have the necessary insurance, such as building insurance and liability insurance.

Frequently Asked Questions (FAQ)

What are the buyer's fees in Spain?
The buyer's fees (costs when buying a property) are between 10% and 13%. This includes transfer tax (10%), notary and registration fees, stamp duty and any legal fees.

How much do construction projects cost in Spain?
The average construction price in Spain is around 2,500 euros per m2, but this can vary depending on the location and the specific requirements of the project.

What about tax when buying land?
If the land is bought from a Spanish company (SL), a 21% tax (IVA/VAT) applies. Stamp duty does not apply when purchasing land.

How much is the transfer tax when buying a property?
The transfer tax is 10% in the Comunidad Valenciana region.

Are you ready to build your own home in Spain? Contact one of our experts today at Select Estates. We will help you through the entire process from buying land to building your dream home. Schedule a free consultation and start your adventure on the Costa Blanca!