How to buy land for building a house in Spain?

How to choose land for building a house in Spain?

Purchasing land in Spain is a profitable investment in the economy of one of the leading countries in the European Union. However, buying land requires understanding local legislation, construction regulations, and tax specifics. In this article, we will cover all the important aspects in detail.

Main categories of land in Spain

In Spain, land is divided into three main categories:

• Urban land (Suelo Urbano): plots that are fully ready for construction, with all necessary infrastructure.
• Land for potential development (Suelo Urbanizable): requires additional approval and registration in the cadastre before construction can begin.
• Agricultural or protected land (Suelo no urbanizable): construction on such plots is strictly limited by legislation. Learn more about using this type of land in the land plots section.

What to consider when choosing a plot?

Before purchasing land, it is recommended to consider the following points:

• Obtain an extract from the Property Registry (Nota Simple) to confirm ownership rights.
• Ensure there are no outstanding debts or encumbrances, such as mortgages.
• The land category and its suitability for construction.
• Restrictions related to the location of the land (e.g., proximity to forests or coastal zones).
• Availability or possibility of connecting essential utilities: water, electricity, and sewage.

Taxes when buying land in Spain

Tax obligations depend on the seller’s status:

• If the seller is a legal entity, VAT (21%) and the stamp duty tax (around 1%) must be paid.
• If the seller is a private individual, the Property Transfer Tax (ITP) applies, ranging from 6% to 10% depending on the autonomous community. More information about taxes can be found in the reports, taxes, and declarations section.

Additional costs such as notary and registration fees (around 1,000 euros) should also be considered.

How to avoid problems when buying land?

To ensure a smooth purchase process, it is important to check the following documents and data:

• An extract from the Property Registry (Nota Simple) to confirm the absence of encumbrances.
• An urban planning certificate specifying the construction possibilities on the selected plot.
• Cadastral information to avoid errors in the land’s data. If you need assistance with verification, consider the property verification before purchase service.

Conclusion

Buying land in Spain is a responsible process that requires careful document checks and consideration of all legal nuances. Consulting professionals can help avoid potential errors and make the purchasing process as smooth as possible. Choose your land carefully to ensure the successful construction of your dream home!