Charges And Building Costs
Harry King retired from corporate life in Britain to live in Spain. He would do so all over again if faced with the same decision, and now lives in Alicante. He is the author of a number of books including Going to Live in Spain, Buying a Property in Spain and Buy to Let in Spain.
CHARGES AND BUILDING COSTS
Fees and legal costs
Land survey |
0.5% |
Architect’s fee |
6.0% (calculated on an artificially low building cost) |
Building engineer |
1.5% (calculated on an artificially low building cost) |
Building licence |
2.0% (4.0% of material cost) |
Legal costs, including IVA |
10% to 19% (remember IVA on land purchase is 16%) |
TOTAL |
20% to 29.0% |
Building costs
A good specification of construction, for a restored property |
750€ per square metre |
A good specification of construction, for a new detached property |
1,500€ per square metre |
Payments to a builder
20% on signing the contract
20% on completion of walls and roof
20% on completion of inside
10% for outside work – walls, patio, pool
10% retained for up to one year to cover snagging defects
IVA – paid on completion or in stages
FURTHER READING
Alex and Erna Fry, Finca: Renovating an Old Farmhouse in Spain. Malaga: Santana Ediciones.
