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PROPERTY

GUIDE: How to get a prefab or container home in Spain

With rising property prices in recent years, container and prefabricated houses have gained popularity in Spain. Here's what you need to know about them, from licences and where to install them, to prices, suppliers and other advice.

GUIDE: How to get a prefab or container home in Spain
Pre-fab homes can vary greatly in price. In Spain, they usually cost between €25K and €125. Photo: Jed Owen/Unsplash

Tiny homes, as well as other alternative properties that cost less than conventional homes, are trending around the world.

This is true of Spain to, where a prefab industry is emerging due to their relatively affordable costs and short installation times.

Many of these companies also offer forms of financing and, on top of that they can be customisable, sustainable and offer the flexibility to be transported and installed in different locations (although the latter option depends on whether they are mobile or fixed homes, depending on the design).

Pre-fabricated homes are called casas modulares in Spanish (usually built with wood, concrete and steel), whereas homes made from shipping containers are dubbed casas contenedor

Where can I build a container home in Spain?

Put simply, to build a prefab or container home in Spain, you need to do it on ‘urban land’.

In Spain land is distributed into three categories: urbano, urbanizable and rústico.

Urbano land has official municipal accreditation for residential properties to be built on it, urbanizable is theoretically meant for residential purposes but needs accreditation and often isn’t connected to the water, sewage or electricity grid yet, and rústico is rural land where residential properties cannot be built, also called no urbanizable.

What does land need to have to be considered ‘urbano’?

According to Idealista, Spain’s leading property website: “This is land included in the urban plan of a city or municipality and which has the permits and characteristics that mean you can build on it.

These plots of land therefore have all the necessary services, and to this end, they must have a water supply and drainage network, electricity supply and road access. There are exceptions where building on rural land is permitted, but they are rare and have many limitations of use and size.”

Even if it’s urbano land, you should carefully pick the right plot, with factors such as its location, how flat the terrain is and how easy it is to access all to be kept in mind (it’s advisable to hire an architect with experience with casas modulares to give you the thumbs-up).

You’ll also need to know the specific urban planning rules of the plot you’ve got your eye on. Each municipality in Spain has its own General Urban Development Plan which you can request from the local council and find out.

It’s likely that they’ll ask you to provide a topographic study (estudio topografíco) and geotechnical study (estudio geotécnico), the former costing between €250 and €400 and the latter around €750, both of which assess the viability of the project.

If you’re looking to build a normal house on rural land in Spain, you’ll need to read The Local’s guide below.

READ ALSO: EXCLUSIVE: Where can you build on rural (rústico) land in Spain?

Is a building permit necessary for a prefab house in Spain?

You’ll need planning permission. Idealista estimates that this licence for planning permission costs between 0.5-2 percent of the final cost of the property once completed.

READ ALSO: Do I need planning permission and how do I apply for it?

Do I need to register my prefab container home?

Like any other sort of property, prefab and container houses needed to be registered in Spain’s land registry.

Do I need a certificate for it?

Nothing specific. As with any new build in Spain, whether it’s prefab or a regular house, you still need to get a certificate of habitability (“Cédula de habitabilidad” in Spanish) which basically proves it’s fit for residential use.

READ MORE: How to get Spain’s certificate of liveability for properties

Where can I buy a prefab house in Spain?

If you don’t fancy starting from scratch and building your own container home (something you’ll need a lot of time and know-how to do) you can buy one pretty easily.

There’s actually a pretty burgeoning market in Spain, whether it be for permanent residence prefabs or holiday homes.

Some of the most established companies include House-Matic, which has been in the sector for 25 years.

Inhaus is also widely recognised as one of the best manufacturers of prefab houses in Spain. It stands out in the market for making custom-made prefab concrete houses and its offering of different architectural styles.

Casas Cube is another company with a long record in the industry, and it specialises in offering more high quality, designer homes.

Casas Cube has built and installed over 440 prefabs in Spain. Its average construction time is six months, and it offers a transport and installation service, so it’s probably a good one to go for if you want to buy your prefab and let the professionals handle the rest.

For a fuller list and ranking of companies that sell and install prefab houses in Spain, you can find one here.

You can also just google casas modulares or casas contenedor and then the name of your city or region to see if there are any businesses specialising in pre-fab homes in your area.

What should I look for in a company?

There are a few things to consider. Think about their industry experience, the sorts of pre-fabs they make and if they can do what you want.
Obviously, as with anything you’ll need to think about price and budget. Is installation included in the price or is it extra? How much more expensive would customisation make it?

But perhaps most importantly, because the company will need to transport the materials, choosing a company closer to you (within a few hundred km, say) or where you plan to build the property, at least, means you’ll save on those costs.

An added bonus of this is that local companies will be familiar with local building regulations, which can change depending on where in Spain you are.

How much do they cost?

Again, like any product this depends. Obviously you can build your own from scratch but that requires a lot of work and know-how, so in terms of buying a prefab in Spain, there’s a range of price profiles available.

They can start as low as €20-25,000 for basic models and run north of €125,000 for larger, more luxurious prefabs, depending on what you want.

You should also factor in taxes such as the Tax on Constructions, Installations and Works (ICIO) which is around 4 percent of the final cost of the project, as well as 10 percent VAT and 1.5 percent Stamp Duty.

READ ALSO: How you can now build your dream home on rural land in Spain’s Andalusia

Anything else I should know?

There’s a famous YouTube channel called Fabrica Tu Sueño (Build Your Dream) created by a young Spaniard who has successfully built his own container home from scratch in Tenerife.

Most of his videos are subtitled in English, you it will no doubt come in handy for anyone else embarking on the same ‘build your own tiny home’ mission in Spain.

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For members

AMERICANS IN SPAIN

Navigating Spain’s real estate market: A guide for American homebuyers

There are some key matters US nationals looking to buy a Spanish home should consider, from legal complexities, to tax, property inspections and the role of buyer's agents. This quick guide by an international lawyer in Spain has you covered.

Navigating Spain's real estate market: A guide for American homebuyers

Buying a residential property in Spain can be an exciting yet complex endeavour, especially for American buyers unfamiliar with the intricacies of the Spanish real estate system.

With varying regulations at the state, regional, and local levels, it is crucial to be well-informed and well-prepared.

In this article, Maryem Essadik, immigration lawyer and head of English-speaking international law firm Marfour, offers US nationals a breakdown of the key considerations when buying a Spanish property.

Legal Complexities

Spain’s legal framework for real estate transactions is multifaceted, involving regulations that differ significantly between the national, regional, and local levels. Therefore, engaging specialized real estate lawyers is highly advisable.

1. State, Regional, and Local Regulations: The Spanish legal system is characterized by its decentralized nature. Each autonomous community in Spain can have distinct laws affecting real estates and property transactions. For example, while some regions may establish restrictions for renting out properties (ie. Limitations or prohibitions on carrying out short-rental activities, limitations on long-term rental prices etc.), others might have significantly varying taxes and fees associated with property purchases, and others can also count with a singular regional Civil Code that regulates in a particular manner important aspects such as the initial down payment contract (“Arras” in Spanish) when buying a property. Municipal regulations can also considerably impact property use and renovations.

READ ALSO: Which cities in Spain have new restrictions on tourist rentals?

2. Legal Representation: A lawyer with expertise in Spanish real estate law can navigate these complexities, ensuring compliance with all applicable regulations. They can conduct due diligence, verify property titles, and check for any encumbrances or legal issues that could affect the purchase. Legal representation is not just a formality but a necessity in Spain to avoid potential pitfalls.

READ ALSO: What’s the difference between a gestor, a lawyer and a notary in Spain?

3. Immigration legal advice: In connection with the property you want to buy in Spain you should receive the proper immigration law advice. Nationality and Immigration regulations in Spain are a complex but at the same time exciting field to navigate to find the best solution that will be matching your concrete case and circumstances (i.e: Digital Nomad Visas, Non Lucrative visas etc.)

LISTED: The visa options Americans can apply for to live in Spain

Fiscal Considerations

Taxation is another critical area that requires careful attention. Spain’s tax system includes various taxes that can impact the overall cost and benefits of owning a property.

1. Tax Residency: Determining your tax residency status is essential as it influences the taxes you are liable to pay. If you spend more than 183 days in Spain in a calendar year, you are considered a tax resident. You can also qualify as tax resident in Spain if having in this country the centre of your economic interests. Tax residents are subject to Spanish income tax on their worldwide income, while non-residents are taxed only on income generated in Spain.

READ ALSO: Do I have to pay tax twice if I’m an American living in Spain?

2. Income Tax and Wealth Tax: Spain imposes income tax (IRPF) and wealth tax (Impuesto sobre el Patrimonio) differently across its autonomous communities. The rates and allowances can vary, so understanding the specific regulations in the region where you plan to buy is crucial. For instance, some regions might have higher exemptions for wealth tax, impacting the overall cost of owning high-value properties.

3. Rental Income: If you plan to rent out your property, you need to be aware of the taxation rules on rental income. US tax residents are currently taxed for their rental incomes in Spain at a 24 percent flat rate on rental income (not being allowed to deduct any expense), whereas Spanish tax residents include rental income in their general taxable income (with different expenses being tax deductible), which could be taxed at progressive rates. Counting with the appropriate assistance of tax lawyers specialized in American clients and with a full knowledge of the US-Spain Tax Treaty can considerably help you to improve your tax bill.

READ ALSO: What the new Spain-US social security deal means for Americans

4. Special Tax Expats Regime: Implemented at the time that David Beckham joined Real Madrid (and known because of that as “Beckham Regime”), that regime may allow you enjoying the pros of being a tax resident in Spain, by living in this country exceeding 183 days per year, but taking advantage of a 24% flat rate and only making taxable in Spain labour incomes together with other incomes generated in Spain but not being taxable in Spain those sourced abroad. This tax regime has a maximum total 6 years duration and those who are eligible for it they also avoid filing Wealth Tax in Spain for their worldwide wealth.

To properly apply for it, it is always recommendable carrying out a previous tax planning and analysis with specialized Tax Lawyers before buying your property and moving to Spain.

READ MORE: 

Property Inspections

A thorough technical inspection by a qualified architect is advisable to ensure the property meets all regulatory standards and is free from structural defects.

1. Construction Defects: Architects can identify potential issues such as structural integrity, water damage, and compliance with building codes. This is especially important for older properties or those that have undergone renovations.

2. Urban Planning Compliance: The inspection should also verify that the property complies with local urban planning regulations. Non-compliance can result in significant fines or even demolition orders.

READ ALSO: Do I need planning permission in Spain and how do I apply for it?

Buyer’s Agents

Unlike real estate agents who typically represent the seller and defend his interests, buyer’s agents work in the interest of the buyer, offering numerous advantages.

1. Local Market Knowledge: Buyer’s agents are well-versed in the local market conditions and can provide valuable insights into different neighbourhoods, school districts, community amenities etc. This knowledge helps in identifying properties that best match your preferences and needs.

2. Fair Pricing: Buyer’s agents can help negotiate better prices. They are familiar with the local market rates and can prevent the common practice of overpricing properties for foreign buyers.

3. Due Diligence: By conducting thorough market analyses and property evaluations, buyer’s agents can ensure that you make an informed decision. They also handle the negotiation process, striving to secure the best possible deal on your behalf.

READ ALSO:

Financial Advice

Securing favourable financial terms can result in substantial savings, making it essential to seek expert financial advice.

1. Currency Exchange: For American buyers, currency exchange rates can significantly impact the cost of purchasing a property. Working with a reputable currency exchange provider can help you get the best rates, reducing overall expenses.

2. Mortgage Conditions: Comparing mortgage conditions from different lenders is crucial. Spanish banks offer various mortgage products, and an independent financial advisor can help you find the most favourable terms, considering interest rates, repayment periods, and other conditions.

READ ALSO: What non-residents should now about getting a mortgage in Spain

Conclusion

Buying a residential property in Spain involves navigating a complex legal and fiscal landscape.

By engaging specialized lawyers, conducting thorough property inspections, utilizing the services of buyer’s agents, and counting with expert financial advice, American buyers can mitigate risks and make informed decisions.

With careful planning and the right support, purchasing a home in Spain can be a rewarding investment and a gateway to enjoying the country’s rich culture and beautiful landscapes.

This article was written by Maryem Essadik, immigration lawyer and head of English-speaking international law firm in Madrid Marfour (Contact: +34 698 917 840, [email protected]).

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