How much it costs building in Spain?
- Cost of the house + taxes = 230,000 €
- Cost of mortgage + taxes = 88,000 €
- Cost of land + taxes = 150,000 €
- Average cost of building in Spain =
- 380,000 €, without mortgage
- 468,000 €, with mortgage
The cost of building an average house in Spain is 380,000 euros. However, this price is just a general approximation since Spain offers a great degree of variability in terms of prices. Building in Ibiza is not the same as building in Guadalajara, not only because the workforce and materials are priced differently, but also because taxes can differ.
If you are an individual interested in building in Spain, below in the table you will find the aspects (sections and subsections) you must be aware of when building a house. A few notes:
- The price does not cover the cost of the land, which also varies widely. As a rough estimate, consider a decent plot of land in a good location to be around 150,000 €. If you do not own land, you must add this amount to the building budget.
- The price does not cover mortgage costs or any sort of financial instrument to ease the payment of the house. If you do not have enough liquid capital, you must add the mortgage cost to the building budget.
The most significant subsection in the table is the PEM (Material Execution Budget), which represents the approximate cost in euros of building one square meter. It usually ranges from 1,000 to 2,000 €/m², depending on where are you building, the architectural complexity, the size of the house and the quality of materials.
Our base case for the numbers in the table are: moderately good location, minimal architectural complexities, 100 square meters and medium quality materials.
| SQUARE METERS HOUSING = 100 m2 | Total cost of building (euros) | 227648.5 |
|---|---|---|
| (a) CONSTRUCTION | Section cost | 197350 |
| PEM = Material Execution Budget (eu/m2) | 1500 | 150000 |
| Urbanization expenses (euros) | - | 0 |
| Construction supplies + consumption (euros) | 1000 | 1000 |
| General contractor expenses (13% of PEM) | 0.13 | 19500 |
| Contractor benefits (6% of PEM) | 0.06 | 9000 |
| VAT (10% of contract budget) | 0.1 | 17850 |
| (b) LAND STUDIES | Section cost | 1000 |
| Topographic study (euros) | 300 | 300 |
| Geotechnical study (euros) | 700 | 700 |
| (c) TECHNICAL FEES | Section cost | 19965 |
| Architect project fees (5% of PEM) | 0.05 | 7500 |
| VAT architect fees (21%) | 0.21 | 1575 |
| Work director fees (architect) (3% of PEM) | 0.03 | 4500 |
| VAT work director fees (21%) | 0.21 | 945 |
| Surveyor fees (3% of PEM) | 0.03 | 4500 |
| VAT surveyor fees (21%) | 0.21 | 945 |
| (d) MUNICIPAL LICENSE | Section cost | 5450 |
| Urban planning license fee (3% PEM) | 0.01 | 1500 |
| Construction and installation tax (4% PEM) | 0.025 | 3750 |
| Waste management deposit (2 €/m2 built) | 2 | 200 |
| (e) POST-CONSTRUCTION PROCEDURES | Section cost | 3483.5 |
| Notary fees for new construction (0.05 value of the house) | 0.005 | 986.75 |
| Registrar fees for new construction (0.05 value of the house) | 0.005 | 986.75 |
| First occupancy license (1% PEM) | 0.01 | 1500 |
| Certificate of habitability (euros) | 10 | 10 |
| (f) UTILITY CONNECTIONS | Section cost | 400 |
| Water connection (euros) | 200 | 200 |
| Electricity connection (euros) | 200 | 200 |
| FINANCING (80% of house price) | Total mortgage cost (euros) | 87944 |
|---|---|---|
| Duration of the mortgage | 20 years | - |
| Bank interest (4%) | 0.04 | - |
| Amount of interests generated (80% of house price financed) | 180000 euros | 81784 |
| Appraisal | 400 euros | 400 |
| Notary (0.05 mortgage liability) | 0.005 | 900 |
| Registry (0.05 mortgage liability) | 0.005 | 900 |
| Tax on legal acts (1.2 mortgage liability) | 0.012 | 2160 |
| Opening commission (1% loan) | 0.01 | 1800 |