how to build a house in mallorca
THE 11 STEPS TO GET YOUR DREAM HOUSE ON THE ISLAND
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Sometimes it is difficult to find a property that fits what we have in mind: its location, its dimensions, and its finishes. In these cases, the solution is sometimes to embark on the construction of your own house.
For someone who has never built a house, it can seem like a real challenge. Where to start, know what the steps are, and not forget, how much the execution of the house of your dreams can cost.
We have tried to summarize everything you need to know about building a house in Mallorca in 11 steps:
1) FIND AN IDEAL LAND
Coast, interior, mountain? First of all, it is to decide where to look for a plot of land to build on. Each piece of land has an associated regulation that determines what you can build. It is important to know that in Mallorca the regulations are different for rural than for urban land.
Normally real estate agents have already consulted the characteristics of this plot, but they do not have a full guarantee. For this step, we recommend having the assistance of an architect who will advise you and can tell you exactly what is allowed to be built on that plot before buying it. It’s really sad to buy land expecting that you can build 300sqm and finally not being able to build more than 100sqm…
The associated cost of land can vary greatly and will depend on the area and size. As for taxes or fees, there are two variants:
If you buy the plot from an individual, you must pay between 8% and 11%. This rate is based on the value of the lot.
If you buy the plot from a company or company, you must pay 21% VAT plus 1.5% of the Documented Legal Acts tax.
Once we have found a piece of land that fits what we have in mind and more importantly, that allows us to build what we want, we will proceed to the next step:
2) CHOOSE the ARCHITECT TO DEVELOP THE PROJECT
To translate the ideas you have into something that can be built, the figure of an architect is necessary. This point is critical, the architect-promoter relationship must be very good, as it will be your right hand throughout the development of the project and construction.
Every architect has a certain style associated with him/her and you should choose an architect that is close to the style you have in mind. At auba studio, for example, we create modern architecture with simple lines, we like natural materials and value the nature that surrounds us, always seeking originality and personalizing the project.
The architect, in addition to developing the plans for the construction of the house, will prepare the project, which gathers the necessary documents to request the municipal license, which we will talk about later.
Sometimes if you are not very clear about which architect to choose, you can request a small feasibility study. At auba studio we develop feasibility studies that include in a single document a summary of the site's regulations, a preliminary sketch design of the program, as well as some visual reference. This document can be used to find out if what you have in mind fits with the site, both for regulatory purposes and for the purpose of choosing an architect.
The cost of the architect is based on the cost of the construction of the house and ranges between 7% and 12% of the material execution budget. The material execution budget differs from the construction budget in that it does not include VAT (10 or 21%) or industrial profit (around 15%), only labor and materials.
The payment is divided into the different phases of a project.
Together with the architect, the following steps are carried out:
3) TOPOGRAPHICAL Survey
A company must be contracted to accurately represent the land of the site on a plan: the location, orientation, ground levels, surface, sidewalks and roads, trees, etc. Normally this document is carried out by professional surveyors and the associated cost depends on the surface and the complexity of a site. The cost can range between €500 and €2,000 for a plot between 1,000m2 and 4,000m2.
4) VERIFICATION OF THE TYPE OF TERRAIN
Each terrain has different characteristics, there are very soft terrains and there are very hard ones, for each type of terrain a different structure will be needed. To know what type of land we have, a geotechnical survey must be carried out. Just as it happens with the topography, the cost of this survey depends on the surface and complexity of the site. Normally they range between €2,500-€4,000 for a simple piece of land.
5) APPLICATION FOR THE WORKS LICENSE
Once we have the topographical and geotechnical survey, the architect will be able to develop the project with the necessary documents and plans to build the house. With this document, we can request the building license. The cost of the fees depends on each municipality, but they are around 7% of the cost of building the house.
The process of waiting to obtain the building license in Mallorca can take even years. The time will depend on each municipality. For example, in Palma they are around 10-12 months (year 2021). In the case of rural land, it can be more complicated since it has to go through the Consell. The worst case is if it affects water resources (up to 3 years).
6) HIRING A BUILDER
While waiting for the license to be granted, the bidding process usually begins with the construction companies. Normally more than one company is chosen in order to compare prices.
The companies will study the executive project together with the quantity survey that the architect and quantity surveyor will have prepared.
Building on the island is usually expensive compared to other places os Spain. The high demand in construction together with the fact that everything has to be brought by ship raises the price of construction considerably.
This cost also varies greatly depending on the qualities and the project, but currently, a simple house of normal qualities would be around €2,000/m2.
Payments are usually made for certifications based on the work performed.
7) RIGER - “aparejador”
In new construction and rehabilitation, it is mandatory to have the presence of an “aparejador” a mix between a civil engineer and an architect. The will be in charge of controlling that the execution of the work is done according to the architect's project. Normally the rigger also performs the function of health and safety coordinator, also almost mandatory in this type of work.
The aparejador's fees are usually around 5% of the material execution budget of the home (remember the difference between material and construction in point 2).
8) WASTE RATE
The Consell de Mallorca requires you to leave a deposit based on the waste that will be generated in the construction of your house in Mallorca. It is not usually very high and when we finish the work we must prove that the waste from the work has been duly taken to an authorized landfill so that the deposit can be returned to us. The cost depends a lot on the construction, but it is not usually significant.
9) TEN-YEAR INSURANCE AND OCT
These two entities are not usually taken into account and they may sound Chinese, but when one builds a house in Mallorca or in the rest of Spain, it is important to know what they are.
Ten-year insurance is a guarantee that covers for ten years (hence its name, ten-year) material damage to the building caused by vices or defects that affect the foundation or construction, for example, damage to the supports, beams, load-bearing walls or other structural elements that may compromise the mechanical strength, stability of the building and its habitability.
The OCT (Technical Control Organization) are technicians that the promoter pays so that the corresponding insurance company can issue the insurance. In fact, the vast majority of companies only admit risks if the work has been supervised by an OCT.
The cost can be approximately 1% of the construction budget of the work.
10) NOTARY SERVICES
At the end of the construction of the house, we must have the services of a notary to legalize it. In addition, we will have to carry out the necessary procedures to obtain the first occupancy license, write the new construction deed, register the home in the Property Registry and pay the corresponding taxes. We can calculate 3% on the value of the construction of the house.
11) CERTIFICATE OF HABITABILITY AND REGISTRATION OF SUPPLIES
With the certificate of completion of work, we can request the certificate of occupancy that is necessary to register the supplies as housing (they are registered as work when construction begins). We can calculate about €300 per supply. The certificate of occupancy is usually included by the architect in his services, but if this is not the case, it usually costs around €150.
Lastly, it is important to know the VAT associated with each point. First of all, administrative fees do not carry VAT. The cost of construction is taxed with a reduced VAT of 10%. VAT on the rest of the points (fees, technicians, etc.) is taxed at 21%.
As you can see, it is important to get good advice if you are interested in building a house in Mallorca, since it is difficult to control all the points of development of a real estate project. In auba, our architects will guide you throughout the process so that you get the house you have in mind.
IF YOU WANT AN ARCHITECT’S GUIDANCE DO NOT HESITATE TO CONTACT US!