Buying a plot and building your own home in Spain

Terms used

• Certificado urbanístico — The certificado urbanístico is a town hall document stating a plot's classification, permitted uses and what you can build.
• Cédula urbanística — The cédula urbanística is a town hall document similar to the certificado urbanístico, setting out a plot's planning status.
• Nota simple — The nota simple is a Property Registry extract showing a property's owner, description and registered charges.
• IBI — The IBI is the yearly local property tax.
• Cuotas de urbanización — The cuotas de urbanización are charges owners pay for roads and services in a development area.
• IVA — The IVA is Spain's value added tax, 21% on a building plot sold by a company or professional.
• AJD — The AJD is a regional stamp duty on certain deeds, charged on top of IVA.
• ITP — The ITP is a regional transfer tax the buyer pays when buying from a private seller.

Key rules

• Buildability: Rustic land generally cannot take a house, so get written confirmation from the town hall before paying.
• Contract condition: Make the purchase conditional on buildability being confirmed by a lawyer or architect.
• Tax: You pay either IVA or ITP on a plot, never both.
• Access: Check for legal access from a public road or registered easement, not just a track.

Check the plot before you pay anything

Do not pay a deposit until you know the plot can legally take a house. A plot can look perfect and still be impossible to build on. Permits and builder contracts are covered on the building-side pages, not here.

Urban or rustic: what you can build

Land in Spain is classed by the national land law, each region's planning law and the town's general plan. The class decides everything.

• Urban land that already has services (a "solar") can normally take a house once you get a building licence. The plan still sets limits on use, height and how much you can build.
• Rustic land (suelo rústico, sometimes "no urbanizable") generally cannot take housing. Only farming, forestry or similar uses are allowed. A home is an exception, tightly limited by minimum plot size and regional rules.
• Developable land (urbanizable) needs a development plan and urbanisation works before anyone builds. Those costs fall on the owners.

Ask the town hall (ayuntamiento) for a certificado urbanístico or cédula urbanística. It states the classification, permitted uses and what you can build. The Catastro record and the nota simple do not prove you can build. Have a lawyer or architect confirm it, and make the purchase contract conditional on buildability. Each region and town applies its own rules, so confirm locally.

Title, charges and access

Request a nota simple from the Property Registry. Check that the seller is the registered owner, and look for mortgages, embargoes, liens or pending claims. Then check:

• No unpaid IBI and no unpaid urbanisation levies (cuotas de urbanización).
• Legal access from a public road or a registered easement. A track alone may not count.
• Water, electricity, sewerage and telecoms at the boundary, and who pays to connect them. On rustic land, wells and septic tanks need permits.
• Boundaries: compare the registry description, the Catastro plan and a topographical survey, and note any mismatch or encroachment.
• Easements and restrictions: rights of way, water or power-line easements, and public-domain limits (coast, roads, rivers, railways, pipelines).
• Regional limits: protected areas, flood risk, fire risk, heritage and minimum plot sizes.
• Unregistered buildings or planning infractions on the land.

Use an independent lawyer and architect. After signing, have the notary register the deed promptly.

If the seller is a developer with a construction mortgage, you can take over your share of it, or require the lender to divide the mortgage and release your home when you pay.

Purchase tax: it depends on who sells

• Company or professional seller of a building plot: you pay IVA at 21%, plus AJD stamp duty, set by each region at roughly 0.5% to 1.5%.
• Private seller, or any rustic non-buildable land: no IVA. You pay ITP, a regional tax. Rates run commonly from about 6% to 11%, with 6% to 10% typical.

IVA and ITP never apply to the same sale. A private seller owes the capital gains tax and the municipal plusvalía, not you. Rustic land sold by a business can also be exempt from IVA. The Basque Country and Navarra have their own regimes.

The documents list and checklist below cover the paperwork, and the FAQ answers common questions on tax and developer mortgages.

Documents you need

• Certificado urbanístico or cédula urbanística from the town hall (ayuntamiento), stating the plot's classification, permitted uses and buildability.

• Nota simple from the Property Registry, showing the registered owner, area, description and any mortgages or other charges.

• Catastro record for the plot, showing whether it is urban or rustic, its area and its boundaries.

Checklist

• Ask the town hall for a certificado urbanístico or cédula urbanística to confirm the plot is urban and what you can build.

• Look up the plot in the Catastro and compare its type, area and boundaries with the registry.

• Request a nota simple and check the seller is the registered owner.

• Confirm the plot has no unpaid IBI property tax or urbanisation levies (cuotas de urbanización).

• Look for easements and restrictions from coast, roads, rivers, railways, protected areas, flood or fire risk, and minimum plot sizes.

• Ask who the seller is, then work out the tax: IVA plus stamp duty from a company, or ITP from a private seller.

Frequently asked questions

Who pays plusvalía and capital gains tax when I buy a plot from a private seller?

The seller pays both, not you, when a private individual sells a plot. The seller owes capital gains tax, and also the municipal plusvalía tax if the land is urban. Your own cost in that sale is the regional ITP transfer tax.

Can I pay both IVA and ITP on the same plot?

No, IVA and ITP never apply together on the same plot sale. If a company or professional seller sells you a building plot, you pay 21% IVA plus stamp duty (AJD). If a private person sells, or the land is rustic and not buildable, you pay ITP instead.

What can I do if the developer has a mortgage on the land?

You can take over your share of the developer's mortgage, or ask the lender to divide it and release your home once you pay. A nota simple shows whether any mortgage exists. Ask a lawyer to review it before you pay anything.

Does a plot with a track but no public road count as having access?

No, a track alone does not give you legal access to a plot. You need a public road or a registered right of way (easement) leading to it. Ask your lawyer to confirm this before you sign.