When planning renovation works on your home in Spain, it is important to know what type of permit you need. This differs for each type of work and also depends on the rules in your autonomous region and municipality. In this article, we explain which permits you need for different types of renovations.
1. Refurbishment works (no permit required)
Simple cosmetic work, such as painting, replacing floors or minor repairs, does not require a permit. These works can be carried out without any formality.
2. Non-structural replacement works (notification requirement)
Non-structural works that improve the functionality of the home, such as a new kitchen, bathroom, electrical installation or plumbing, are usually subject to a notification requirement (comunicación previa) with the municipality. Although these interventions do not affect the layout or structure of the house, you should inform the local authorities about them before you start.
3. Non-structural works (planning permission required for minor works)
Works that change the layout of the house and are not too complex, such as moving internal walls, usually require planning permission for minor works (licencia de obra menor). This type of permit is also often required for modifications to windows and doors. As long as the façade of the house is not changed, these renovations fall under the category of "minor works".
4. Structural works (planning permission required for major works)
Major renovations involving changes to the structure of the property, such as removing load-bearing walls, extending the built-up area, or carrying out works to the roof, facade or terrace, require a major works permit (licencia de obra mayor) is required. With this application, you must submit a project prepared by an architect.
The municipality levies taxes on both the application (tasas municipales) as the approval of a building permit (impuesto sobre construcciones, instalaciones y obras). These fees are based on the value of the works excluding VAT.
Local regulatory differences
The regulations surrounding permits vary by autonomous region and municipality. Whereas in one municipality you only have an obligation to report, in another you may need a permit for the same works. Therefore, consult a local architect first on the possibilities/feasibility of your renovation project.
Remodelling a house in Spain: why appoint an architect?
It is recommended that you involve an architect as early as possible in the purchase process. An architect can assist you at an early stage, such as during the home buying process. Besides advising on the feasibility of your renovation project, an architect can also estimate the renovation budget. This can be useful during negotiations on the purchase price.
Even if you have already reserved the property, it is wise to engage an architect. During the usual reservation period of 20 to 30 days, when the property is taken off the market, you can have an engineering study done to identify the options and costs.
Read more about the steps in the buying process.
Capital gains tax after renovation
Renovating usually increases the value of your property, but bear in mind that you may have to pay capital gains tax in Spain when you sell. For non-residents, this tax is 19% on the net profit (sale price minus purchase price, purchase and sale costs, and costs for structural renovation works).
It is therefore important to keep all invoices of your renovation works properly. Only structural renovations that demonstrably contribute to value enhancement are usually accepted as deductible expenses. Refurbishment or repair works are rarely recognised as such.
Read more about capital gains tax in Spain.
Do you have plans to invest in a Spanish property to renovate? Or do you have questions about buying property in Spain? If so, please feel free to contact with us. Confianz will guide you through the entire purchase process.
