Before you start planning to build a property in Spain it is important to take into consideration all the costs involved in the process - from buying the land and paying the constructer to all the taxes and paperwork.
It will normally be cheaper to construct a property compared to buying a second hand property but it can end up being a very expensive experience if all the licenses and contracts are not in order. Below you can find a short introduction to some of the most important financial elements of constructing a property. If you have any questions or are interested in further information about how much your building plans will cost or need help with financing your project please Contact Us.

Cost of Land
The price of land varies considerably depending on the area, the standard of the plot, views and the normal factors that have influence in the price of a house.
Plots in exclusive areas near the sea or golf course will cost about 200-700EUR per square meter and in other tourist areas about 100-400EUR per square. By going further inland you will be able to find plots from about 10-150EUR per square meter.
Apart from the direct cost of the land you should calculate with another 10% to cover the transfer tax, registration of the title deed and notary fees.

Cost of Building
The cost of building a property are again very variable and depends on the quality and type of materials used, the conditions of the terrain, the design and the type of property. Apart from the above factors the price from constructer to constructer differs and it can therefore be recommended to get several offers.

A standard quality villa with garage and pool (200M2) will cost about 500 - 700EUR per square metre constructed and a complex with about 20 apartments of 100 square metres will cost about 700 - 1000 per square metre constructed.

Other Costs
The other costs involved with the construction of a property will be around 25-30% of the construction cost and includes VAT (7%), fees for licenses, architect and technical assistant fees, paper work and legal assistance, getting water, electricity and telephone to the property, registration of the new property etc.
If you are planning to construct a property for your own use there will also be some annual cost of having a property in Spain including property taxes, community fees, insurance etc (please see the section Buy a Property in Spain for further information).

Mortgage
Getting a mortgage to buy land and construct a property is much more difficult than getting a mortgage for a second hand property. The reason for this is that the bank will not have any security apart from the value of the plot until the construction is finished and the real value of the property is estimated. Before granting a loan to construct a property the bank will take into consideration all the possible problems that can occur like not getting the necessary license which can result in that the property will not be finished, possibility of delays and the name and reputation of the constructer. A good way to approach the bank is to have all the papers in order including licenses to build, the architects design approved by the town hall and an outcast of the contract with the builder. If you are interested in further information about mortgage loans or other financial issues of constructing in Spain please Contact Us or fill in the form in the Help & Advice section.

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