What are the procedures to follow to renovate a property in Spain?

Spain has always been a favorite destination for sun worshipers, whether for a vacation or for longer term projects involving a move within the country. The Spanish real estate market (link to the new article on the Spanish market) is very attractive to foreigners thanks to the lower prices. If you are considering the acquisition of a property to renovate in Spain, there are several things to take into account so that everything takes place in the best conditions. We will analyze together the different procedures to follow. 

Authorizations and permits required

Obtain the co-ownership agreement

In the event that your property is in a condominium, the first step to take will be to obtain the authorization of this one. Depending on the scope of the work envisaged, it will either be necessary to present a simplified file at a general meeting of co-owners for minor works, or to present a complete file carried out by an architect - Proyecto de Reforma - for more important works.

Request permission for the work from the town hall

Once you have obtained the co-ownership agreement, you will need to apply for a work permit - licencia de obras - from the municipality in which your property is located. This authorization is required regardless of the size of the work you wish to carry out. Without authorization you risk being penalized and receiving a fine.

If accepted by the town hall, you will receive either:

A declaration of work - Licencia de obra menor

This is the authorization issued by the town hall for all small jobs - repainting, revamping the bathroom, changing the tiling, etc. - which do not alter the structure of the property or its external appearance. After obtaining the declaration, you will have a maximum of 3 months to carry out the work. This procedure, which can usually be done online, requires filling out a form and providing additional documentation such as a plan and / or a budget for the work.

A building permit - Licencia de obra mayor

This is the authorization issued by the town hall for major works such as for example: works which modify the structure, the expansion of a property in terms of height and / or volume, rehabilitation works of a good, etc.

Be sure to make this request in advance because the average time between applying and obtaining the building permit varies between 3 and 8 months.

What are the costs associated with a renovation in Spain?

For all works - small or large - you will have to pay a tax, the "Tasa por prestación de servicios urbanísticos" which will vary according to the municipality of your property. You will also have to pay a municipal tax to the ICIO (Impuesto sobre Contrucciones, Instalaciones y Obras).

The cost of the tax varies between 150 € and 1000 € depending on the size of the work and the municipality. Municipal tax is calculated on the basis of the total cost of the work and varies between 2% and 4% (4% being the maximum authorized rate). In general, you must make the payment of this tax within a maximum period of 30 days after the start of the work.

The prices charged by construction professionals in Spain are more attractive than in France or Belgium. You will count between 300 € / m² for light work and 800 € / m² for major work with high quality finishes.

Funding

The most attractive type of financing is bank credit. There are two types: mortgage loan and personal loan. The mortgage loan is financially more interesting than the personal loan and easier to set up. We recommend that you carefully analyze the different options available in order to make your decision.

There is a financing aid set up by the Spanish government of up to € 24,000 for certain types of work such as, for example, work to improve the energy performance of the property or rehabilitation work. There are many conditions to be met in order to get help. It is therefore preferable to discuss this directly with a professional.

Have professionals accompany you on site

The best tip we can give you is to get support and advice from professionals - preferably French speaking - who work in the Spanish real estate market. They know the intricacies of this market and can save you time and money buying and renovating your property.