Generally, whenever you want to renovate or carry out building work in your home, you need to apply for a building permit. Though some small renovations do not require any permit type, most do, and you must factor in this expense. So, how much does a building permit cost? This article will resolve any questions you may have.
How is the building permit fee calculated?
There are two issues to consider when calculating how much to pay for a building permit:
- Council fees for urban development services must be paid when the file is processed. The fees must be paid regardless of whether the licence is approved, and the amount varies according to the each council's local by-laws.
- Tax on Construction, Installations and Works (ICIO) must be paid after the licence has been obtained and is applicable when a building or work is carried out that requires such a licence.
How much does a building permit cost?
These fees depend on the council where the property is located. They are usually between 4% and 6% of the project's Material Execution Budget (PEM). The ICIO, on the other hand, is between 2% and 5% of the PEM. Moreover, VAT still must be paid.
To calculate the building permit fee, you need to look at the type of work and its estimated cost. Generally, it costs between €250 and €300 and can exceed €6,000 in some situations. The technical project cost must also be taken into account. This is essential for the licence and must be prepared by an architect or a qualified professional.
For example, the building permit cost varies in Madrid. For interventions that do not require a detailed project, prices can range from €40 to €600, based on the scale of the work and the property's purpose.
Types of building permits
Depending on the scale and characteristics of the renovation, there are two main building permit categories: major works and minor works.
How much does a building permit cost?
"To obtain a building permit, you usually pay fees and ICIO, which varies from town to town. Normally, the price is 3%-5% of the building material budget. Moreover, you have to pay guarantees for waste management, which are usually 0.5% of the budget," explains Ignacio de la Vega, architect at the delavegacanolasso studio.
The building permit fee for a building project with a budget of around €50,000 could cost between €1,500 and €2,500.
If we take the new building licence in Madrid as an example, the administrative process can cost up to €6,000, taking into account fees and taxes. However, this price varies depending on the building's surface area.
How much does a building permit cost for minor works?
"The cost of building permits for minor works depends on each council. We recommend looking at the tax ordinance for each town or city. Normally, it is around 7% of the project price, between licence fees and ICIO," explains Juan Goñi, founder of Klick Arquitectos.
By way of example, for a minor works project with a budget of €3,000, the licence fee would be around €210.
For a building permit for minor works in Madrid, such as a one-off renovation, the approximate cost is €200. We have to add ICIO to this amount, which is 4% of the PEM in the Spanish capital.
Where do I apply for a building permit?
Many towns and cities have an appointment system to apply for a building permit. Each council has its own telephone number or website.
In Madrid, for example, you can make an appointment through the free telephone number 010 if you are calling from the city of Madrid or, failing that, on +34 915 298 210.
If, for example, you want to make an appointment for a building permit in Andalusia, you can do so online via the Cita Previa app or by calling the 012 Service (telephone 012 and +34 955 012 012). You will need your ID number (DNI or NIE). You can also request an appointment with your digital certificate or DNI-e via the app.
Documentation to apply for a building permit for major works
"To apply for the building permit for major works, we believe it is easier to present a basic project (which does not need to be approved). Therefore, if the council requires any documentation, it is easier to modify the project. With this, the council grants you an urban planning licence. To obtain the building permit for major works, you do need to draw up the building project and present it with the architect's association's certification," explains de la Vega.
Although the documentation depends on the local council, here are some of the documents usually required for a building permit for major works:
- Complete application form
- Applicant's ID number
- Documentation proving the agent's representation (if any)
- Proof of payment of the corresponding fees
- Technical project certified by the Architects' Association: digital cadastral map, site plan and plan before the construction work
- Budget per unit at current market prices
- Descriptive and justifying report of the intervention, with the foreseen duration of the works and the expected start date from when the local council licence is obtained.
- Explanatory report and annexed fire prevention plans
- Installations
- Specifications
- Waste management study
Documentation to apply for a building permit for minor works
Again, you have to check what each local council requires. "They usually ask for plans and budgets broken down by items, in addition to the administrative documentation," says the founder of Klick Arquitectos.
Among the possible documents required to grant the building permit for minor works, the following are frequently requested:
- Application
- Technical project signed by an architect
- Plan and photographs
- Descriptive report and project drawings
- Detailed budget
- Health and safety study
- Proof of payment of fees and taxes
How long does it take to grant a building permit?
In theory, local councils usually grant or refuse a building permit within three months of the council's technicians submitting their proposed decision to the competent body.
However, the timeframe for a building permit to be granted or rejected depends on the urban planning department's workload. In most situations, it takes an average a year from the date of application for a building permit to be granted. In many towns, building permits have been replaced by a declaration of responsibility, which can be granted much quicker. However, again, it depends on the local council, so you will have to ask your local council if this possibility exists.
How long does it take to grant a building permit for minor works?
"The time it takes for the concession to be granted also depends on the local councils. It could be immediate if it is by responsible declaration procedure, or take many months for councils that do not have a responsible declaration procedure or for minor works that are in culturally protected areas that involve a change of use or similar," explains Goñi.
Other building permits
Among the different building permits, we can highlight the construction permit, which refers to the permit required to start constructing a building. But how much does the construction permit cost?
The average cost of a building permit to build a house of standard dimensions is around €1,200. However, the price range for this service can vary between €50 and €4,200 per project, being determined by factors such as the permit type and the location where the project will be carried out, among other relevant aspects.
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