Buying land to build a property in Spain 

For years, Spain has been one of the most popular destinations for Brits moving abroad. The warmer weather, comparatively affordable prices, quality services and welcoming society all recommend the country to expats. 

Moreover, the size of Spain and its relatively small population mean that there’s plenty of land to develop. Popular areas amongst homebuilders include Barcelona, Seville and San Sebastian; city locations are ideal for young professionals, while more rural spots appeal to retirees and digital nomads. 

Given an increased demand for bespoke properties in the wake of the Covid-19 pandemic – which mandated spending more time at home – construction services have also flourished, meaning a greater array of choice for those considering buying land to build a property in Spain, rather than buying existing Spanish property. On hand are real estate agents, architects and lawyers to help navigate the legalities and practicalities of building from scratch. 

First things first 

For those looking into building a property, there are a number of important considerations to be made.  

To ensure long-term satisfaction, Campbell Ferguson, Chartered Surveyor and Director of Survey Spain, also advises clients to examine their motives for building. Buying land on a whim or embarking on a long-winded vanity project can have disastrous consequences: as Ferguson instructs, ‘decide if you are building for your ego or your peace of mind, wallet and enjoyment of living.’ 

Prospective homebuilders are advised to bear in mind that the process of building from scratch can take a long time. The design stage can take a number of months; preparing the building license application generally requires 4-6 weeks and its subsequent approval can add years to the wait before building can begin. Once construction is underway, it may be up to 2 years before the house is ready to move into. 

Financing  

It makes sense to factor in the cumulative costs of the land, various surveys, legal advice and construction before splashing out. The cost of building is generally equivalent to that of the land; together, the plot and the construction work make up approximately 80% of the total price of the project in most cases. 

Banks generally don’t grant mortgages for land purchases, meaning homebuilders must typically apply for loans or remortgage an existing property. Alternatively, a self-build mortgage can help to finance construction, as Real estate company Solvia clarifies:  

‘This type of mortgage is normally divided into three sections: the initial phase (after approval, so that work can begin), the certification phase (as construction continues) and the completion phase (once the property is finished). In general, these operations cover 80% of the budget.’ 

Finding a plot 

Finding land to build on in Spain isn’t difficult, necessarily – but it’s important to be aware of what constitutes a suitable plot.  

There are two types of land in Spain: rústico and urbano. The two categories are similar to the UK classification of brownfield, greenfield and green belt plots. Rústico land lacks the necessary infrastructure to build upon and should not be bought for development, while urbano land generally already has electricity, water supplies and drainage facilities. 

While urbano land may be marked for construction, it won’t always have all the amenities necessary to make it habitable. In such instances, there may be an additional charge for installing services that are missing. 

Moreover, there are parameters that apply in certain areas which stipulate the percentage of the plot that can be built upon as well as the maximum height of the proposed building, the number of balconies and even the colour of the facade. To help navigate such details, it’s a good idea to recruit a number of experts. 

Who to employ 

An architect 

One of the best people to contact during the early stages of looking for a suitable plot is an architect. Not only will they be able to translate your vision into reality, but they can advise you at the start whether the land you’re looking at is suitable, by analysing access, orientation, size and ground surface.  

Facultad Directiva 

The architect will work alongside three others in managing the construction of your property – these are the director of the works, the works manager, and the health and safety officer. As the architect leads the team, they should be able to find other professionals to work with. 

A lawyer 

Given the many legalities associated with buying land to build a property in Spain, it’s advisable to get a lawyer on board. They can ensure that the project is above board at all times, helping to avoid fines, penalties and unnecessary expense. 

The paperwork 

A summary of the necessary documentation for homebuilding gives an overview of the work required: 

Firstly, a Plan General de Ordenación Urbana should be sourced, or else a list of suitable plots from an estate agent of your choosing. 

Next, prospective buyers can request a nota simple from the Land Registry – this will reveal whether the land has any previous charges or debts. This should be cross referenced against a cadastral certification from the Cadastre, which hold maps, drawings, boundaries, plans and details of land and buildings. 

Town planning regulations must then be consulted for limitations upon building features. Specific sites should have their own certificado urbanistico, giving distinct specifications about development permissions – a lawyer ought to be able to help source this.  

Once designs have been finalised, planning permission must be obtained through the submission of a building license application. Alongside this process, the construction team should prepare a full written project or proyecto de ejecución which will outline the structural details of the house.  

Save money when buying land in Spain 

At Currencies Direct we could help you save money when transferring money to fund the purchase of land in Spain. 

With our excellent exchange rates and no transfer fees you should see savings immediately, while our additional transfer options could help your money go even further. 

For instance, if you are holding out for a more favourable exchange rate, you could use a limit order. Simply inform us of your target rate and we will execute your transfer the instant this rate is struck. 

Get a quote today to find out how much you could save. 

Building from scratch is not always the easiest option, but it affords homeowners the luxury of a bespoke, purpose-built property without necessarily costing more than a conventional house. 

The key consideration for anyone considering going down this route is preparedness: make sure to budget realistically and have the necessary paperwork ready to go. Expert advice is highly recommended but you yourself must take responsibility for the project, by setting clear expectations and communicating regularly with your team.