Sustainability
How Much Does a Building Permit Cost in Spain in 2024?
Detailed analysis with examples to evaluate the cost of a building permit
Building permits are, today, an essential procedure to consider when carrying out an architectural project. But, in Spain, is there a standardized pattern for obtaining one?
Breaking down the total costs of carrying out a construction project is something every developer must consider before starting the process. Among all factors, perhaps the construction cost, including knowing how much a building permit costs in Spain, is the most important issue to resolve when assessing the feasibility of the operation.
In this article, we go into detail regarding the building permit procedure, understanding its meaning, the steps required to obtain it, the obstacles we may encounter, and, primarily, how much it costs; these are questions we will resolve rigorously, providing future owners and developers with the tools to calculate total investment costs.
WHAT IS A BUILDING PERMIT?
A building permit is the procedure through which authorization is requested to certify the legality of a construction project. It is a necessary permit to carry out the construction itself.
The building permit, also known as a planning permit, is requested from the local administration of each municipality, namely the corresponding town hall. Each municipality establishes its own specifications regarding the documentation to be submitted when filing the application, although the technical project and the payment of the fee are usually common to all.
This is a fundamental requirement for projects of all sizes and technical complexity, provided there is structural work, as these require strict adherence to safety standards and current legislation to guarantee the safety of individuals and compliance with municipal and state regulations.
Despite being an indispensable step in the guidelines for carrying out a project, it is important to remember that a building permit is declaratory in nature; that is, it does not create or constitute a new right, it only recognizes it.
WHAT TYPES OF BUILDING PERMITS EXIST?
To go into detail and understand what a building permit in Spain consists of and how much it costs in 2024, it is advisable to first specify the types of construction work existing in Spain.
The classification of works is organized into two categories, depending on their characteristics: minor works and major works.
1. MINOR WORKS
Minor works refer to simpler renovations that do not affect the building’s structure. This means they do not necessarily require a construction project signed by a specialized technician.
Minor works include repairs, decoration, replacement of finishes, installations of air conditioning, heating, sanitation, etc.
2. MAJOR WORKS
Major works are considered larger-scale projects where the renovation affects any structural element.
Major works include new construction, extensions of a building’s height and/or volume, restoration, rehabilitation, demolition, actions related to fire protection, or changes in the use of the property.
Therefore, in accordance with the above, depending on the specifications of each project and its magnitude, one type of license or another may be required.
HOW DO YOU APPLY FOR A BUILDING PERMIT?
RECOMMENDED PRELIMINARY STEPS FOR APPLYING FOR A BUILDING PERMIT
It is advisable to hold various meetings with the municipal technician.
BEFORE PURCHASING THE LAND.
Although the regulations affecting a plot of land are open to public consultation and are usually published online, it is advisable to consult with the technician regarding possible restrictions on the granting of permits prior to purchasing the land.
In some cases, land may be affected by urban plans or may be pending urbanization works that temporarily or indefinitely block the granting of building permits on them.
PRELIMINARY STEP BEFORE STARTING THE PROJECT.
It is important to keep in mind that each municipality has different municipal regulations; therefore, prior to starting the drafting of the project, the architect must read and understand the municipal code.
As these are very specific regulations that change according to each region, municipality, and development, it is always advisable to resolve technical doubts before starting the drafting of the preliminary design.
In any case, it is important to clarify that the technical services will under no circumstances intervene in design matters, but only in verifying compliance with the urban planning values set for said location—land use, plot area, building height, buildability, occupancy, and facade setbacks, among others.
STEPS REQUIRED TO APPLY FOR A BUILDING PERMIT
The application for a building permit begins with the developer contacting a specialized technician—an architect, engineer, or technical architect. The professional specialized in the sector proceeds to generate the necessary technical documentation prior to the application. This professional then has the documentation certified by the corresponding local College of Architects.
To complete the application process, the interested developer must pay the established fee corresponding to the requested building permit. Like any tax transferred to autonomous regions or municipalities, its cost depends on what those local administrations have established.
Once the amount associated with the corresponding fee has been paid, the certified project is submitted to the town hall. Within a period of 1 to 3 months, the final resolution is notified by the municipal technical services, who are responsible for verifying compliance with urban planning regulations.
HOW TO KNOW THE COST OF A BUILDING PERMIT IN SPAIN IN 2024?
As mentioned previously, the application for a building permit involves the payment of a fee intended to verify that the work complies with regulations. However, payment of the fixed amount does not necessarily imply approval of the project, just as its denial does not guarantee a refund of the money.
To determine the price for granting a building permit, the different aspects encompassing this type of permit must be considered:
1. Municipal fees for the provision of urban planning services.
The municipal fee is a local tax whose amount will depend on each municipality and autonomous community. The amount corresponding to this fee is paid as soon as the permit application is submitted; that is, it is independent of the project’s approval. They usually range between 4% and 6% of the PEM (Material Execution Budget).
2. The ICIO (Tax on Constructions, Installations, and Works).
The ICIO is a municipal tax levied on the performance of any construction, installation, or work for which a building permit is requested, regardless of whether it has been obtained.
The self-assessment is submitted in the month following the start of the work, and the amount is paid by the building permit applicant. Its value depends on each town hall, usually costing between 2% and 5% of the PEM.
HOW IS THE PEM CALCULATED?
The Material Execution Budget (PEM) is the cost of the materials and labor necessary for the execution of the work.
It is calculated by multiplying the measurement by the unit price of each unit of work. The costs corresponding to the different units are totaled by chapters which, when added together, give the result of the amount relative to the PEM.
It should be noted that the PEM corresponds to the initial tax base and does not include expenses related to Value Added Tax (VAT), the builder’s profit, or the fees of specialized technicians.
The PEM, in addition to assessing tax rates and building permits, also allows for estimating the feasibility of technical projects and valuing notary acts.
WHICH REGULATIONS ARE INVOLVED IN GRANTING A BUILDING PERMIT?
PGOU. General Urban Development Plan
The POUM [2] is an instrument for the comprehensive planning of the municipality that allows for the planning of territorial development. It defines different aspects of the city, such as its streets, buildings, parks, and facilities, but also its rural environment and its physical relationship with neighboring municipalities.
Habitability Decree of each autonomous community
To be applied in the case of residential buildings.
LOE. Building Management Act
The LOE [3] is a law that aims to regulate and organize the building process in all its stages. The application of this law is directly related to the responsibilities of the different agents involved in order to guarantee protection for the user and the environment.
CTE. Technical Building Code
The CTE [4] is the regulatory framework that establishes the basic quality requirements that buildings must meet in relation to the basic safety and habitability requirements established in the LOE.