Your questions answered on building in Spain

Building in Spain: Your Questions Answered on Costs, Permits & Process

MDCI are Project Management professionals who have been supporting clients to build villas, apartment blocks, hotels and residential developments in Spain for over 25 years. We’ve seen the good, bad and downright ugly, and have learnt important lessons from the mistakes our clients have made and the problems that these mistakes have created.

Our experienced team are here to help clients every step of the way, and guide them in the planning and construction phase to ensure that their projects are completed on time and on budget.

During many of our projects, the same questions come up time and time again. We believe that knowledge is power, so we wanted to share these questions and answers in this article. We hope that it will help you understand how things work, how to deal with contractors, the process of building in Spain, and help you avoid the pitfalls.

Please feel free to send us an email with additional questions you may have, or schedule a meeting to find out how we can help you to navigate the complexities of building in Spain.

A professional project manager can refine estimates and ensure your budget remains realistic throughout the process.

1. How to Budget in the Early Stages of a Project?

Budgeting is one of the most common concerns when building in Spain, especially in the early stages when contractor pricing is not yet available.

This is something we’re asked a lot, as it is hard to estimate costs without tangible figures from the constructors coming in. However, you can create a best guess projection by detailing all the items in your development plan and putting them against market average prices.

These will be updated or confirmed, when true prices come in, but will act as a guide in the design phase, to help you to develop your project in line with the funds available and keep constructors on track during the bidding process.

Find out more about how to budget for a construction project in Spain

2. How Do You Know if Your Plot of Land has Permission to Build?

The answer lies in the official classification use of the plot in question.

Understanding this from the outset helps you avoid investing in land that cannot be developed—or requires costly reclassification.

Currently there are 3 classifications – Rustico (rural land), Urbanizable (apt for development) or Urbano (urban).

This last classification- Urbano – is ready for development, permitting of course that you follow the applicable design restrictions. Rustico is not. Urbanizable land is subject to urban reclassification, always allowing for certain things; such as cessions of part of the land for green areas, schools, utilities and the need for infrastructure implementation. You can find out what the plot’s classification is by asking the Town Hall for a Certificate or by obtaining a nota simple from the Registry.

Check out our article on – How to select residential land and build a property in Spain

3. How Long Does it Take to get Planning Permission on the Costa del Sol?

It can take anything from 3 months to over 12 months – depending on various factors and where you are building.

If possible, you want to ensure that the plot is clear of archaeological remains, the borders are agreed and clear, and the design complies with the regulations and doesn’t affect any protected trees, as all of these factors can delay the granting of planning permission significantly.

There are large variations between areas and some Town Halls are very understaffed. You need to get it right from the start, as any discrepancy found in your documentation will automatically extend the process, as your file will go to the back of the queue.

We recommend that the application is fully audited and revised by a skilled project manager before being submitted. That same project manager can also assist the process by keeping in touch with the relevant departments of the Town Hall. By putting in a few calls to the right people it can be possible to expedite matters, or solve any issues before they cause too much delay.

Find out more about getting building licences on the Costa del Sol

4. Can You Remove Trees from a Plot?

In Andalucia there is a blanket preservation order on all established trees and permissions are generally from the Medio Ambiente department of your Town Hall to cut, prune or fell trees. This is usually relatively straight forward and involves the Town Hall visiting your property and discussing what you plan to do and sign a form. However, it can take 6-8 weeks to come through so can delay things for you.

If you have a protected tree you want to remove in order to build on a plot of land. The Parks and Gardens inspector will usually insist on the tree being replanted in another area of the site. If this is not possible, they may insist on replacing the tree from a garden centre of their choice and planting on site, which can become quite expensive and time consuming. In most cases, Town Halls here on the Costa del Sol will insist on a Bank Guarantee before issuing the permit, so it’s important to bear all these issues in mind when planning your project and make sure you get the right permissions before you touch any trees.

5. What are Obras Menores and Obras Mayores?

Understanding the difference between these licences is essential when planning construction work in Spain.

Obras Menores are small remedial works that do not affect volume, elevations or existing parameters. There is a cost limit of 60,000€ for this category of works. Everything above this requires a “Major works licence” or Obras Mayores, that itself requires technical plans and an application to the Town Hall. Costs for these licences is about 3-5% of the calculated works.

6. What is the “Licencia de Primera Ocupación?”

This is a certificate that proves that the building is habitable and it fulfils all the relevant regulations in your region. Furthermore, it is a revalidation that your architect and technical team have complied with the building permit and related limitations or restrictions. This includes a maximum volume size, façade height limits, the footprint occupied on the land etc. The architect or a Technical Architect can create this document for you for onwards approval by the Local Authority. This document confirms the dwelling is fit to live in and complies with the original conceded regulations. You will also need this to request connections to services such as electricity, gas and water- as well as to register your title deeds.

Why You Need Expert Project Management?

Building in Spain involves multiple stakeholders, regulations, and potential risks. Without proper oversight, projects can face delays, budget overruns and legal complications.

We hope these answers have helped you to understand a little more about the process of building in Spain. It’s just the tip of the iceberg in terms of the information and insights you’ll want to have to successfully complete a construction project in Spain. We recommend you bring in the experts from the start and contract an independent and highly experienced Project Manager, who understands the process, the pitfalls and the crunch points that so regularly derail projects in this area.

MDCI are here to support you throughout your construction project and be by your side, representing your best interests, every step of the way. We have a wide range of project management services including luxury villa development, analysis, consulting, monitoring and feasibility, project development and project rescue.

Please contact us today to schedule a consultation and discover how we can help you navigate the complexities of building in Spain with confidence.