11 Buying in the Country + Planning Permission
If you are buying land or a property in the country, such as a farmhouse (finca), it is essential to find out if it is in an area where building is allowed (in which case it is called a “finca urbana”, or – if land – “suelo urbano” ) or where it is not allowed (“finca rustica” or “suelo rustico”). This classification will affect the value, and it will also affect how much of a mortgage you can raise.
Land in Spain is zoned for development, which can restrict your options. There are green zones and rural areas where development will not be allowed. There are also rules, which limit building size in relation to plot size. You should therefore check with the local Ayuntamiento that you can get permiso de obra (planning permission) to build on the land you want to buy, or to renovate and extend or alter the property, and if so, what the limits would be.
If you are buying land or property which is classified as “urbano”, it is possible to mortgage this on the normal terms and conditions. If you are buying land or property where building is not allowed – “rustico” – the maximum mortgage amount is 50% of the value over 12 years.
In fact, this same situation applies to all land and properties in Spain: if you are buying land anywhere with the intention of building your own property, this is only possible where the land has been zoned for building (“suelo urbano”).
More information on this is given in Section 13.
If you are buying on a new development (“urbanización”), it is equally important to check that the urbanización itself is in an area zoned for building, and that the necessary planning permission has been given. If a builder has failed to obtain the necessary planning permission, the authorities have the power to order the complete demolition of the development. More information on this is given in the next section.
If you are buying a property in the country to restore or redevelop, there can be other problems. It is often the case that escritura do not exist for such properties, and you need to establish your right to the property through a process known as “expediente de dominio”. This is complex, involving publication of your claim in the Boletin Oficial del Estado (the Official Gazette). Then you need to ensure that the records of the Registro de la Propiedad and the Catastro agree, and that these are in accordance with what local custom holds to be the property boundaries.
You are only allowed to build on a certain percentage of the land area. You need to check for availability of utilities – especially water and electricity. You need to check for servidumbres de paso (rights of way) as these cannot be blocked. For all these you need the services of your lawyer.