Prefab houses in Spain: what to know before you buy

The demand for prefab and modular homes keeps growing, mainly because of their attractive prices. But can they be placed on any plot of land? Do you need a licence to live in one? Which authority handles the permits? These are the questions most often asked before making this investment.

In 2017, there was no specific regulation in Spain on the obligations, permits or taxes for prefab houses in general. Now the legal situation has changed and it is rare to find a municipality without specific rules on the matter, as reported by Eurocasas. For this reason, it is important to check the regulations of each municipality before buying this type of house.

Before this legal framework existed, it was the way the home was installed that determined which rules applied. The Civil Code distinguishes between immovable property and movable property. Article 334 defines immovable property as “land, buildings, roads and constructions of all kinds attached to the ground”, while article 335 defines movable property as goods that “can be moved from one place to another without damaging the immovable property to which they are attached”.

So if your prefab house needs foundations and a connection to the public water and power supply, it will be considered immovable property. You will therefore have to follow the procedure set by the Building Act (Ley 38/1999 de Ordenación de la Edificación) and the Technical Building Code (Código Técnico de la Edificación). You will need permits for the construction, the works, the siting and the anchoring of the house on a building plot.

For all these procedures, the project must be signed by an architect. “The project is always drawn up by an architect. They may work within the company or for the company. In our case, for example, every project is different because each house is made to measure for the client,” explains Eurocasas.

On the other hand, if your house can be moved, it is movable property. In this case, you will not need as many procedures, only the one relating to where the house is placed. In general, the rules consider that these houses can change location almost at any time, which explains why so many permits are not needed.

“In our case (and that of many other companies in the sector), all the houses we offer can be moved. They leave the factory fully assembled and are then installed on the plot. However, some will be mobile homes and others modular constructions (anchored to the ground and treated as movable property),” explains Eurocasas.

What type of land do you need?

As a rule, the land must be urban (suelo urbano) rather than rustic, although the town council always has the final say. “Most land is subject to regional rules, but some municipalities have their own specific regulations,” says Eurocasas. In practice, some municipalities or regions have more flexible rules, but none really stands out from the others.

In any case, the best thing to do is to check the General Urban Plan (PGOU) of each municipality to find out how the land where the prefab house will be installed is classified. To start any procedure, you therefore need to go to the town hall that the plot belongs to and ask for its planning information form.

With all this information, the municipal technician will tell you about the characteristics of the land to determine whether it is compatible with installing a prefab house. The technician will not look at the construction model, but will focus on the number of square metres of the building, maximum heights and exterior finishes.

What fees and taxes will I have to pay?

All procedures for this type of home involve costs which, in the case of mobile homes, will be lower. No building permit is required, but some documents are needed for where they are placed, such as the siting permit. You will therefore pay a fee ranging from 0.5% to 2% of the total cost of the home. “The truth is that it is difficult to place mobile homes on private land. They are most often installed on campsites, where these fees do not apply,” reports Eurocasas.

For houses considered as immovable property, the owner will also have to pay the construction, installations and works tax (ICIO), of up to 4% of the cost of the works, depending on the town. Finally, the owner will have to pay the fee set by each autonomous community to obtain the occupancy certificate and first occupation licence issued by the relevant council.

What is the best material for a prefab house?

When it comes to materials, the timber models stand out for their low cost. Bear in mind, though, that they cost more to maintain and do not last as long as other prefab houses built in metal or concrete.

Structures made of steel give the owner greater hardness, strength and durability, although in reality concrete structures have gained the most market share in recent years. Whatever material you choose, check the years of guarantee offered by each manufacturer.

“Prefab house manufacturers must give you a 10-year guarantee on the structure (3 years for the rest of the house), provided it is a house with a building project. The legal guarantee on a mobile home is two years,” says Eurocasas. Since 2022, the legal guarantee on goods bought from a business in Spain has been three years.

Do you have questions about prefab houses? Feel free to contact us about your property project in Spain.

Source: Idealista News