The construction price per square metre is only part of the story. Many foreign clients budget for land and construction, then discover a long list of additional costs that nobody mentioned upfront. Here are the costs that catch people off guard — and how much to budget for each.
Taxes and government fees
ICIO (Impuesto sobre Construcciones, Instalaciones y Obras) — the municipal construction tax, typically 3% to 4% of the declared construction budget. Licencia de obra fee — additional municipal charge for processing your building permit, usually 0.5% to 1.5%. IVA (VAT) at 10% applies to construction services and professional fees. Property transfer tax (ITP) at 6% to 10% on the land purchase. Notary and registry fees for the land deed — typically €1,000 to €3,000. Plus-valía municipal — a capital gains tax the seller may try to pass to the buyer.