Building A House In Mallorca

New Construction Application Mallorca

Applying for a construction permit on rural and urban land, some parts of the process also apply to an application for a major reform of an existing building on both rural and urban land.

The Land

The process begins with finding a plot of land suitable for the construction you wish to build. Each piece of land has an associated regulations that determines what you can build. Some key points to note are the minimum area permitted for construction, the area, which is available for construction on each plot, are there features of the landscape which could impact what can be constructed. riverbeds, flooding, forestry, protected areas.  In Mallorca the regulations are different for rural than for urban land, and each town hall has its own regulations which apply to rural and urban land.

Preliminary Feasibility Study

A simple feasibility study ( Informe/Report) of the size and type of construction which would be permitted can be done before you buy, this can include information about connections for electricity and water. A period of time, to receive this information can be included in a sales agreement with the seller. Having receive the information and agreed the sale, if you are buying the plot from an individual, you will pay between 8% and 11% of the sales value as taxes and registration fees.  Buy a plot of land from a company 21% IVA is applied to the sale plus 1.5% of the costs of taxes and registration fees.

Application Part One

Two surveys are required to advance an application for a building permit, these can be done with an architect you intend to work with throughout the project or you can also commission them yourself if you haven’t found an architect to work with.

Topographical survey: which gives an accurate representation of the location and size of the property using latitude and longitude points from a known position. It also provides information about the landscape orientation, ground levels, the location of roads or access points to the property, and in some cases points of interest such as trees original features dry stone walls wells or other items which should be taken into consideration when an application is made.

Geotechnical survey: each terrain has different characteristics, there are very soft terrains and there are very hard ones, for each type of terrain a different structure will be needed. This can also include a study of the below ground water sources or aquifers. Both surveys are used by your architect to create an application for a construction permit which will also included all relevant planning requirements and various conditions which have been discussed with the responsible municipal architect and municipal engineer in advance.

Incorporate into the design of the project which you require, this is the moment to take your time. The process of waiting to obtain the building license in Mallorca can take a long time. The time will depend on each municipality, in the case of rural land, it can be more complicated than a project for an urban plot as the application also has to go through the “Consell Balear” (regional planning authority) for approval. The worst case is if it affects water resources (up to 3 years) or is close to protected areas of forestry or mountains. Revisions can take as long as the original application, so it is better to take the time working with your architect to present an application which will be accepted without revisions.


Application Part Two Proyecto Básico

To build in Mallorca, each building application request has a handling fee (Tassa) and the payment of a building tax is due. Each municipality has set its own rate for the handling fee, which may range from 0.50% to 0.60% of the total construction cost (PEM) “Presupuesto de ejecución material”. The building tax (Impuesto de Construcción) can range between 4.00 % and 6.00 % of the total building costs. Once submitted, your project will be checked for general and local urban planning requirements and issues such as fire protection, user safety, accessibility, local design regulations, etc. In the case of rural properties fincas, chalets and villas, the “Consell Balear” (regional planning authority) will be involved. And your architect will also submit the planning application to the Architectural Association in Palma to be registered with them as an “Visado” a record of the project stored with the association has a file number, which guarantees that the architect is qualified to carry out his work.  The Town Hall will have to wait for a positive decision from the “Consell Balear” before the final building permit (Permiso de Obra) can be issued by the town hall if the building permit is for rural land. The finalized and the completed form for a building application which has been granted by the town hall and Consell Balear is normally described as Informe Técnico Definitivo or maybe described as “Proyecto Básico”. Land is often offered for sale with a granted Proyecto Básico, sometimes because the owner of the land feels they will receive a better price for the property as they have completed the most complex and time-consuming phase or because of the time to reach a Proyecto Básico the owners plans or circumstances have changed.

Application Part Three Work plan and Project Final Execution

Once the Proyecto Básico has been granted or during the period waiting for it to be granted, the architect continues to develop the project working with an aparejador (quantity surveyor / civil engineer). Builders are asked to quote for the construction, using the plans materials, and appliances provided to them by the architect and aparejador. As the construction begins the role of the aparejador increases controlling the execution of the work to make sure it is done according to the architect’s project. The local planning authority will require proof that the construction and all of its features have been executed correctly before they provide the final certification for the construction.

During this phase it is not possible to change the location of the proposed construction on the plot or the area which the construction occupies. It is possible to change elements of the interior distribution in consultation with the local planning authority.

If you are buying a plot with a construction license Proyecto Básico and wish to change elements of the design before you purchase is the time to discuss the changes with the architect and vendor.

Part Four Fin de Obra

The certificate Fin de Obra granted by the planning authority at the end of the construction phase guarantees that all of the project has been completed correctly as described in the planning permission granted for the project. Without a Fin de Obra it is not possible to register the new construction as a habitable space and receive a Cédula de habitabilidad. A Cedula is required to contract services such as an electrical connection, water, or sewerage. A cedula is also required to sell a property. Some architects will include the cost of certificates such as a cedula and energy certificate as part of their fees for a construction project, though the cost of registering a new construction with the land registry office and creating the first property deed for the property is not normally included and is an extra cost which should be accounted for at the end of the project Notaries services will normally be calculate as 3% of the value of the construction of the property.

Other Costs and IVA

The cost of an Architect is based on the cost of the construction of the house and ranges between 7% and 12% of the material execution budget, only labor and materials.

Aparejador’s fees are usually around 5% of the material execution budget, only labor and materials.

Project Administrators or Project Managers’ fees are usually around 1.5% to 2% of the overall budget for the project. As the administrators work, can begin with organizing the supplies of materials to the construction site, and end ordering the final furnishings as the new owner takes occupation.

Architects’ fees, Aparejadors, Project Administrators and other surveyors or technicians are taxed at IVA (VAT) 21%.

Cost of construction is taxed with at reduced rate of IVA of 10%.

Administrative fees certificates etc., do not have IVA (VAT) applied to them.

Waste Deposit Mac Insular Mallorca

The Consell de Mallorca requires a deposit based on the amount of waste that will be generated in the construction of a building project or reform project is left with Mac Insular. It is not usually very high amount, and the deposit can be returned if proof that any waste has been correctly disposed of is provided to them.

Ten Year Insurance and OCT

Ten-year insurance is a guarantee that covers for ten years material damage to the building caused by vices or defects that affect the foundation or construction, for example, damage to the supports, beams, load-bearing walls or other structural elements that may compromise the mechanical strength, stability of the building and its habitability. The OCT (Technical Organismo de Control Técnico) are specialized technicians that the promoter or owner of the project pays for so that the corresponding insurance company can issue the insurance. In fact, the vast majority of insurance companies only admit risks if the work has been supervised by an OCT. The cost can be approximately 1% of the construction budget of the work.

Proverb ‘Time and tide wait for no man’

All construction licenses and reform licenses are granted with time frames, these can be extended with certain conditions and fees attached.

It’s important to be aware of the constraints of the time period of a granted license, if the license lapses it may not be possible to renew it due to changes in planning regulations or new planning regulations may be applied and the features or constructed area of the project reduced.

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