How much does it cost to build a house in Spain? This question is certainly one of the main ones for those who are going to build their own home in this country. In this article, we will provide approximate costs for building a house in Spain with examples of cost calculations.
First, we note that there are three main stages in drawing up an estimate for building a house in Spain:
1. Presupuesto de Ejecución Material (PEM) - estimate for construction work. This is the first stage, including the costs of materials needed to build the house.
2. Presupuesto de Contrata (PC) - estimate for contract work. This estimate includes not only the costs of materials and services, but also the costs of construction and the fee of the construction company implementing the project. General expenses (13%), industrial profit (6%) and VAT (10%) are also taken into account. Experts advise consulting with several construction companies, as the difference in the cost of the same project can reach 50%.
3. Presupuesto Total (PT) - the final estimate. This budget includes taxes, license costs and other additional costs, in addition to the PC.
Architect. He designs the house, gets it approved by the architectural association, makes any necessary changes, obtains a building permit and, upon completion, a first occupancy permit. His fee is between 5 and 0% of the projected value (PEM).
Technical Architect. He is responsible for managing the construction process and monitoring the quality of the work. He also obtains a building permit. His fee is approximately 30% of the architect’s fee.
Safety Coordinator. Although this role can be performed by an outside professional, it is often performed by an architect or technical architect. He develops a safety plan for the construction site and monitors its implementation.
Designer. He is responsible for creating interiors. The cost of his services can vary greatly depending on his reputation and experience.
Notary. His tasks include registering the new house with the private property register, paying the necessary taxes and other administrative procedures. His fee is between 1 and 2% of the house’s value.
One of the most significant expenses is the purchase of a plot of land. Previously, before the crisis, this expense item accounted for about 30% of the budget for building a house, but in the current conditions, experts estimate it at about 40%.
In addition, it has become more difficult to find a plot of land with the necessary characteristics and permits for construction: the demand for land exceeds supply, and the cost of plots is quite high.
Key point: after choosing a plot of land for purchase, before signing the purchase and sale agreement, be sure to contact the City Council (Ayuntamiento) of the local municipality to obtain information about the building permit for this plot and the permissible dimensions of buildings (area and height). It is also important to check the plot for encumbrances by requesting an extract from the private property register (nota simple). In addition, make sure that the data in the purchase and sale agreement, such as the area of the plot and the name of the owner, match the information in the private property register.
To the price of the plot, you should add the notary's fee and registration costs, which amount to approximately 0.5% of the purchase price, as well as taxes. If the seller is an individual, you will have to pay the property transfer tax (ITP), which varies from 7 to 9% depending on the region. If the seller is a legal entity, VAT at 21% applies. In addition, do not forget about the tax on legally documented acts (stamp duty).
Before construction begins, a topographic and geotechnical survey of the site must be carried out. A topographic survey costs between €250 and €400, and a geotechnical survey between €650 and €800. This data is needed to create a house project, which is developed by an architect. His fee is 4-10% of the project cost plus VAT (21%). The architect must also get the project approved by the colegio de arquitectos and make changes to it if necessary.
Once the project is completed, it is necessary to obtain a construction license (licencia de obra mayor) from the City Council, which requires additional costs (approximately 1-2% of the project cost). It is also necessary to arrange for the connection of electricity and water supply for the area where the construction will take place. In addition, it is necessary to pay a construction tax (4% of the project cost) and make a deposit for the disposal of construction waste, which is returned upon completion of the work, provided that it is disposed of correctly.
The next major expense is construction, which will make up about 40% of the total budget. This item also includes professional fees, builders' fees, and taxes. The total amount depends on the size of the house, the materials chosen, and other factors.
When using mid-grade materials, the estimated cost is between €750 and €900 per square meter of built housing. You also need to pay a tax on the cost of materials, which varies from 0.6% to 1%.
The cost of the house structure will largely be determined by the materials chosen for its construction.
Type of structure
Concrete: 125€/m2-140€/m2
Wood: 185€/m2-200€/m2
Steel: 90€/m2-100€/m2
The above amount refers only to the cost of materials. If you include the cost of the foundation, the price will increase to a range of €300 to €400 per square meter.
To complete the construction process, you need to obtain a certificate of completion and a first occupancy license, as well as register the property in the private property register. These procedures will require the payment of various fees and a notary fee.
Connection of electricity, water, gas and other services.
Costs approximately €200 per contract.
Final finishing, furnishing and decoration.
Amounts to approximately 10% of the total project cost.
Calculation of the cost of building a single-family home:
Expense item — Amount
Project cost (800 €/m²) — 96,000 €
Contract price (952 €/m²) — 114,252 €
Total cost with VAT (10%) — 125,664 €
Engineering and geological survey of the site — 1,100 €
Project development and architect's fee (5%) — 4,800 €
Construction management (2%) — 1,882 €
Total with VAT (21%) — 9,416 €
Construction license (1.5%) — 1,418 €
Construction tax (4%) — 3 692 €
Contracts for water, electricity, gas supply — 500 €
Total — 140,690 €
To this amount, you should add the costs of acquiring and registering the land, taxes, notary fees, as well as finishing and furnishing costs, which make up 20-30% of the total cost. As a result, the cost of building a house of 120 sq. m in Spain will be approximately €168,000.
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