Let us begin with the fact that there are three levels of development of the budget for construction in Spain:
- Presupuesto de Ejecución Material (PEM) - project cost of construction. The first level, which includes the cost of materials needed to build a house.
- Presupuesto de Contrata (PC). To the cost of materials and services are added the costs and fees of the construction company that will implement the project: Gastos Generales (13%) and Beneficio Industrial (6%) + VAT (10%). Experts recommend consulting with different construction companies as the difference in cost may reach 50% for the same project.
- Presupuesto Total (PT) - final budget. Taxes, license fees, etc. are added to the PC.
Of course, construction in Spain should begin with the purchase of land. Perhaps this is the largest expense item. Before the crisis, buying a plot of land accounted for about 30% of the budget to build a house, but now the situation has changed, and experts say it’s about 40%.
In addition, finding a suitable plot with all the necessary characteristics and permits for development is currently not easy: demand exceeds supply, and land prices are quite high.
A very important point: once you have chosen a plot of land for purchase, before entering into a contract of sale, contact the City Council (Ayuntamiento) of the municipality on whose territory it is located and ask for information on whether development is allowed on this plot, and what the maximum size of the building that can be built here (area and height). You should also check the land for encumbrances by requesting an extract from the private property registry (nota simple). In addition, you should make sure that data such as the area of the plot and the name of the owner, specified in the contract of sale, coincide with those in the register of private property.
The total cost of building a house in Spain with an area of 120 sq.m. will be about €168 000. The cost of a ready-made house may vary, up to €200-300 000.