[vc_row][vc_column][vc_empty_space height=”40px”][vc_custom_heading text=”Calculating the cost” font_container=”tag:h2|text_align:center” use_theme_fonts=”yes”][vc_column_text]Although the majority of costs lie with purchasing the site and the building work itself, there are other on-costs that you can easily neglect to build into your calculations.
Of the total cost, you can expect to pay:
- 45% for purchasing the plot
- 40% for the building work
- 8% for the professional fees
- 7% for taxes and licences
(This is a promedium, and each situation must be analize in particular)
- It is important that you select your site carefully. It might sound obvious but you must check with the local municipality in Spain that you can build there and what restrictions there might be in terms of dimensions of the building. You should check the current ownership of the land and that the specifications match the registration recorded in the Land Registry.
You need to consider your utilities too. Is your plot accessible from a public road? Are services available including water supply, sewage and electricity?
On top of the building costs and the price of the plot you must add the costs of the Deed of sale, notary fees and registration in the Land Registry in Spain. This usually comes to around 0.5% of the purchase price.
There will be Transfer tax to pay of between 7% and 9% and if you are a company you will have to pay 21% in VAT. There will also be VAT to pay on the building work itself that will come to around 10% of the contract budget. VAT (IVA) also applies to architects’, technicians’ and builders’ fees all at a rate of 21%.
Overall it is estimated that the cost of building the house will come in at 750 -1200 euros per square meter of house built. The final cost can come in higher as there is a tendency for you to pick higher quality building materials and solutions when building for your own use. The individual builder will not necessarily benefit from economy of size either.[/vc_column_text][/vc_column][/vc_row]