Everything you need to know before buying a prefabricated house in Spain

Industrialization and prefabricated housing are becoming increasingly popular options in Spain due to their features and cost-effectiveness. The short construction time is also one of the factors driving demand for prefabricated homes during the coronavirus crisis. But can prefabricated homes be installed on any plot of land? Is a license required to live in a prefabricated home? If so, where should one apply for it? These are just some of the frequently asked questions before purchasing a prefabricated home in Spain.

Until 2017, there were no specific regulations regarding permits or taxes for prefabricated homes in Spain. Now, the legal situation has changed, and according to the Spanish company Eurocasas, which specializes in prefabricated homes, it is now rare to find a municipality without relevant regulations. Therefore, it is important to consult the rules of each local community before purchasing a prefabricated home. The Spanish Civil Code distinguishes between real estate and movable property. According to the law, real estate includes "land, buildings, roads, and structures of all kinds attached to the land," while movable property refers to those that "can be moved from one point to another without damaging the real property to which they are attached."

Therefore, if your temporary home requires foundations and connections to public water and energy supply systems, it will be considered real estate, and you will have to follow the process outlined in the Construction Management Law (LOE) and the Technical Building Code (CTE): you will need a construction license, work permits, and placement and anchoring on the site. For all these procedures, a project signed by an architect is necessary. However, if your home can be moved, it is considered personal property. In this case, not as much paperwork is required, only what is related to the placement of the temporary home. Generally, Spanish law considers that these homes can change their location almost at any time, so fewer permits are needed. "All the homes we offer can be moved. In fact, they leave the factory fully assembled for installation on site. However, some of them are mobile homes, while others are modular constructions (anchored to the ground and considered personal property)," they explain at Eurocasas.

What should the land be like for installing a prefabricated house? In general, the land must be suitable for construction, although the final decision rests with the local administration.

What fees and taxes do I need to pay to install a mobile home in Spain? All procedures for this type of housing are associated with costs, which in the case of mobile homes will be lower. A building permit is not required, but certain documentation is needed for their placement, such as an urban planning license, for which a fee must be paid ranging from 0.5% to 2% of the value. "Honestly, it's difficult to set up mobile homes on private land; they are usually installed in campsites where these fees do not need to be paid," explains Eurocasas. For mobile homes, which are considered real estate, the owner must also pay a tax on buildings, installations, and works, about 4% of the total value. Finally, the owner must also pay a fee required by each autonomous community to obtain a certificate of occupancy ("cedula de habitabilidad") and a first occupancy permit ("licencia de primera ocupacion"), issued by the relevant local council.

What material is best suited for prefabricated homes? The most modern prefabricated homes are modular because they adapt to the needs of their owners. They are built in factories, and some major developers, such as Via Celere or Aedas, have joined this type of construction, which they prefer to call industrialized housing. When it comes to materials, wood stands out for its low cost. However, it should be noted that the maintenance costs are higher, and its lifespan is shorter than that of other prefabricated homes made of metal or concrete. Steel structures offer the owner greater strength and durability, although in reality, concrete structures hold a larger market share. In any case, regardless of the chosen material, the buyer should familiarize themselves with the warranty conditions offered by each manufacturer. "Manufacturers of prefabricated homes must provide you with a 10-year warranty on the structure (3 years on the rest of the house) if it is a house with a construction project. The legal warranty for mobile homes is two years," Eurocasas clarifies.