Constructing a property in Spain can be very tempting both from a private and from an investment point of view. If you are looking for a house in Spain this option allows you to decide exactly how your property is going to be designed and economically it can be a good investment both for small and professional investors if everything is done right.

That everything is done right is the most important point.
The Spanish bureaucracy and the paper war involved with constructing a property makes it a very complicated and long process and we can strongly recommend getting good legal advice right from the beginning of the process.
It used to be a common practise to start building without obtaining the necessary licence in advance. Today this practise has changed as fines are very expensive and the government is paralysing many constructions or even knocking it down.

Below we have outlined the paper work involved with constructing including the licenses needed, contracts and legal issues. If you have any doubts or need help with your construction plans please Contact Us.

The Plot
The first issue you need to look into is to find a plot of land where you can construct your requested property. When you are looking for a plot of land you will have to take a look at the town plan at the local town hall to make sure that building a property is allowed on the plot. It can be recommended to obtain a written confirmation from the town hall stating that the land can be used to build on.
From the town hall you can also find out any restrictions towards the size, the height, the percentage of the plot you can build on and the general plans for the area. If you are purchasing a plot within a community you will also have to go through the community regulations as they can have some restriction towards what you can build.

Having made sure that you can build your planned property on the plot the next step will be to prepare the purchase. Before paying any money you will have to make sure that there are no outstanding debts on the plot and that the seller also is the owner of the plot or have the right to sell it.
The paper work involved with finalizing the purchase of the plot are the same as when purchasing a house (see Buy a Property in Spain for more info).

License and Architect
The next step will be to get the license from the town hall. When applying for a building license the architect has to present detailed information and drawings of the property to the local town hall.

This means that you will have to find an architect and get the design ready before you can get a license to construct.
In general we can recommend to get the architect and a technical architect (aparejador) involved before you finish the purchase of the plot as there can be some technical restriction, which can make it difficult to construct your requested property on a certain plot.

When you are looking for an architect you will have to make sure what is included in the offer made as it can vary from only the design to including technical assistance and inspection during the construction. You also have to make sure that the exact building description (memoria de calidades) including materials used for the construction forms part of the architectural plan.

Building Contract
One of the most important elements of constructing a property is the building contract with the constructer. The builder will always try to protect its interests and if you are not experienced with these type of contracts your property can end up being of a fare less quality than expected, take twice as long as promised or even worse.

To protect yourself always make sure that your lawyer draws up the contract or goes through the contract proposed by the builder.

The most important elements of the contract are to make sure that;
- The full name and CIF number of the constructing company and the owner are included.
- The construction are made from the plans and building description (memoria de calidades) provided by the architect.
- Extras such as garage or pool are included the price
- Starting and termination date including penalties for late delivery.
- Payment terms (newer pay more than 20-30% before the starting date of the construction and fix all the rest of the payments to different stages of the construction. It can also be recommended to retain 5-10% of the price to repair any defects after the building is finished)
- The certificates from the architect, electricians and the town hall have to be given on the last payment.

Certificates
When the license has been granted from the town hall and you have signed the building contract the construction can start.
If all the paperwork has been done correctly the only thing you have to worry about during the construction is that the builder follows the exact plans and standards given by the architect. It can be recommended to have your own technical architect to inspect the construction on a regularly basis and the payments during the different phases should be given against a certificate from the technical architect stating that everything is according to the plan.

Before you pay the outstanding amount to the constructer there are 3 documents that you need;
- The first is the certificate from the electrician (Boletin de instalaciones eléctricas) saying that all electrical installations are in order.
- The second is the certificate from the architect (Certificado de fin de obra) stating that the house is finished.
- The declaration (licencia de primera ocupación) from the town hall stating that the house is approved to live in.

The last thing you need to solve is to get the new property registered at the Spanish Property Registry, as the title deed only contains the registration of the plot. To be able to register the new property in the title deed it is necessary to make a declaration of new work (declaración de obra nueva) and to provide the full certification of the construction including the building license, the certificate of building completion and the certificate of first occupancy.