Buying Land in Spain: Things You Need To Know

Whether you want to retire in Spain, invest in Spain, or are looking for a holiday home. Buying land is a great option to save money, and make something that feels completely yours. When it comes to buying land in Spain, there are a few things you need to take into account. First, you should be aware of the different types of land available in the country, and what each type entails. Second, you should also understand how to choose land and the costs involved. Third, but not last, you should know about the risks involved. In this article, we will provide an overview of each of these topics so that you can make an informed decision when purchasing land in Spain.

Buying land in Spain

There is no doubt that buying land in Spain is an exciting prospect. The country renowned for its stunningly beautiful scenery and it also has a rich cultural heritage. Next to this, it is also one of the most popular European countries for foreigners to emigrate and not as crowded and expensive as other countries.

All of these factors combine to make buying land in Spain an attractive proposition for many people. In addition, the climate in Spain is excellent, with plenty of sunshine throughout the year. This means that those who purchase land in Spain can enjoy relaxation and tranquility on their own piece of paradise, while also having easy access to all the amenities and attractions that a lively city has to offer.

Building your dream home in Spain

Building a house in Spain can be a great experience, but it is important to be aware of the many planning rules and permissions that are required. In general, the process of building a house in Spain is quite complicated, and it is important to make sure that all the necessary paperwork is in order before starting construction.

Permissions and regulations

When building a house in Spain, remember that regulations vary by region. Each autonomous community has its own rules, so consult a property lawyer or local authorities for accurate information.

Choosing a land to build

Spain is a diverse country, with plenty of different regions that offer their own unique charms. When it comes to choosing a location to build your dream home in Spain, you will need to consider a few things.

• What amenities do you need?

It is important to consider the amenities you need in the surrounding area. Do you need to have access to public transport? Is it necessary for shops, schools, and hospitals to be nearby? Or do you need a large range of leisure activities on your doorstep?

• What type of climate do you want?

The climate is another thing to keep in mind when buying land in Spain. There are many different areas in the country, and each one has its own climate. For example, if you want to escape from colder climates buying land in sunny Andalusia might be a good idea, but if you enjoy skiing then it could make more sense to buy property in mountainous regions like the Sierra Nevada.

• Do you need to live somewhere close?

When choosing a home in Spain, many people prefer to live close to their workplace. This makes sense, as it eliminates the need for a long commute and allows you to spend more time relaxing at home. Additionally, many people who purchase a home in Spain choose to do so near an airport, as this makes traveling to and from the country much easier.

• How much do you want to spend?

The amount of money you want to spend will also affect your decision when buying land in Spain. For example, if you are looking for a cheap property then there are many different options available to you, but they might not be the most attractive properties in the area. Cheaper land can also come with building restrictions. It is important to not fall for a deal that is too good to be true.

• What type of obligations does the land carry?

Some land might carry obligations for building and providing certain amenities. It is important to know what you are buying and if there will be any restrictions or obligations you will have when making a land purchase on the Spanish property market. For example, the municipality might have plans to urbanize the land you are buying, in this case, in the future, you will have to negotiate the property price, make votes with surrounding property owners, or will have to sell your property.

Other options apart from building

There are many other options available when buying land in Spain.

Buying a brand new property

This can be a great option, as you will not have to go through the hassle of getting planning permission and construction permits. Additionally, there are many different types of properties available for purchase, so you are sure to find one that meets your needs and budget.

Renovating an existing property

Renovating a property in Spain requires proper permissions. You’ll need approval for building pools, moving walls, or changing the use of the property. Regulations vary by region, so ensure all paperwork is in order before starting construction.

Costs of buying land in the Spanish property market

In 2024, the housing market experienced a sharp rise in property prices for both sales and rentals. Resale home prices climbed by 10.7% in November, reaching €2,244 per square meter. This marks the highest increase since 2006 and continues a streak of seven consecutive months of growth. However, the cost of land is cheaper in rural areas than in urban areas.

There is a big distinction between rural areas and the main cities of Spain. This is because there is less demand for land in rural areas, and developers are not as likely to build new properties in these regions. Additionally, the cost of land is usually higher near airports and major cities. This is because there is more demand for land in these areas, and people are willing to pay a higher price.

Land classification in the land registry

For urban planning purposes, we classify the land in the land registry into three main groups: Suelo Urbano (urban land), Suelo Urbanizable (land for development), and Suelo No Urbanizable (land not for development) (often known by users as rural land).

Urban land is defined by the municipality’s general planning as land that either has all the necessary services and infrastructure—such as road access, water supply, drainage, and electricity—or is largely consolidated by existing buildings. It also includes land that has been developed and urbanized according to the planning regulations.

Suelo Urbano (urban land)

It is mandatory to construct on these properties in accordance with the city’s or region’s ‘Planes de Desarrollo Urbanístico’ (General Urban Development Plan, PGOU) or within designated urbanization zones known as ‘Planes Parciales’.

Most of these territories are already developed and inhabited, with all of the urban amenities and infrastructures required for residential habitation in terms of high or low population density. They offer some facilities such as:

• Sewage system and drainage
• Parks and green areas
• Water, internet, and electricity
• Sports facilities
• Schools and colleges
• Health facilities
• Road access

Within urban land, there is a distinction between Urbano Consolidado (consolidated urban land), and unconsolidated urban land (Urbano No Consolidado, de Núcleo Rural o Urbano Especial).

Suelo Urbano Consolidado: This type of land is already finished built on and consolidated with all of the urban amenities and services required for a residential settlement. Consolidated land is already finished built on, and does not require you undertake any building works on the propertyto make it legal.

Suelo Urbano no Consolidado: This type of land is not finished built on or consolidated, the Spanish government still wants to build extra on this land. The land’s owners are required by law to finish the urban fabric, conduct rehabilitation operations, interior renovation, urban remodeling, change of uses, rehousing, planning of the subsoil or sanitization of people, and others of the same sort.

Suelo No Urbanizable

Non-urbanizable soils are those that cannot be used for industrial, residential, or commercial purposes because they are exclusively intended for certain protected usages such as nature conservation, agriculture, or livestock. Other residential, industrial, or commercial uses are severely restricted and prohibited. The two categories within Suelo No Urbanizable are:

Suelo No Urbanizable Protegido: These are soils that have been designated “protected” for reasons such as nature, forest, and others, in order to preserve. In other words, these are lands that have the same protection as natural parks or nature reserves, and they are strictly prohibited to build or develop buildings.

Suelo No Urbanizable Comun (Terrenos, Suelo Rústico o Finca Rustica): This land is primarily used for agriculture and livestock production, and sometimes other uses such as residential and commercial development, subject to certain restrictions. This type of land is protected from urbanization or other uses that go against its natural or primary use of agriculture.

Suelo Urbanizable

Suelo Urbanizable or Developable land is land that is suitable for urban development. This type of land is still non-urbanized, but you can expect that in the future it will be. This means that in the future infrastructures such as water supply systems, electricity networks, sewage systems, drainage networks, road access will be needed.

In other words, likely the municipality will integrate them into an urbanization strategy, although they are not yet included in one. The owner of developable land has to pay for the urban transformation action of the land if the municipality decides to urbanize it.

Risks involved with buying land

While buying property in Spain has its own set of pitfalls, the same risks apply when purchasing land. Next to this, you should consider Spanish taxes such as the property tax and wealth tax when owning land. We also suggest bearing in mind the following risks:

Future development plans around your land

Buying land comes with risks, especially regarding future development. The municipality might urbanize nearby areas, ruining your view, or planned projects like parks or malls might not happen due to policy or economic changes. Be aware of these possibilities and consider them carefully before making a decision.

Unkown rights and obligations

When buying land, it’s crucial to know the risks. One common issue is not understanding all the laws and regulations. For instance, land with water streams or in hunting areas may have restrictions. Research thoroughly to ensure you’re making an informed decision. We advise contacting a property lawyer to analyze the obligations and rights that you have when you own the land.

The local authority redevelops your land

There is also the risk that the municipality decides that your plot of land needs urbanization. This means that you will require to have water-supply networks, proper sewage systems, and road access to the land. This is a problem because you will have to pay for these infrastructures. If you’re unaware, you could buy land without realizing the infrastructure costs are your responsibility. This is a common and serious issue in Spain, as high building costs might even force you to sell the property.

Not obtain building permits or planning permission

Obtaining a building permit in Spain can be a difficult process, as there are a number of bureaucratic hurdles you must overcome. One of the main problems is that the procedures and regulations for obtaining a permit can vary from one municipality to the next. In addition, the process can be lengthy, taking anywhere from several months to a year or more. There are also times when the permits are denied, often without any explanation. This can be frustrating for property owners who want to construct their homes or business according to their plans. It’s important to note that these problems are not unique to Spain, and often a property lawyer can advise you on how to best go through the process.

Ownership of the land after you have purchased it

Ownership disputes are a major risk when buying land. These disputes often arise when the owner fails to properly register the land or when errors exist in the documentation. Such issues can trigger lengthy legal battles. Verify that all documentation is accurate and register the land correctly with the authorities before completing any transaction.

A word from SublimeSpain

Buying land in Spain can be a complicated process, however we are here to help you. Whether it’s verifying the legal status of the land, reviewing zoning laws, or ensuring there are no hidden liabilities like debts or ownership disputes, we’re here to guide you every step of the way.

Our goal is to make the process seamless, secure, and stress-free for you. Contact us today!

Disclaimer: Information on this page may be incomplete or outdated. Under no circumstances should the information listed be considered professional legal or financial advice. We highly recommend seeking guidance from a legal or financial expert if you lack extensive knowledge or experience dealing with any of the procedures outlined in these articles.