Costs of buying a home in Spain in 2025

 If you're at that point where buying a home is a thought that fills your mind all day long, what we're going to tell you today will be of interest to you. When you're looking for that home where you feel fulfilled, It is normal that the first thing that catches your eye is the price of the house, But, in case you didn't know, there's much more.

At Modular Home, we offer industrialized prefabricated concrete houses with the highest quality, and it's absolutely true that it's a way to affordably purchase a home without sacrificing luxury and customization. But does the expense end there?

If you are evaluating a home new development, there are two ways: buy it from a developer or build it in self-promotionAt Modular Home we are here to help you with this second model: You are the developer of your own home, you control each game and you avoid commercial margins in fees and licenses. Below, we break down all actual expenses that you should consider to make informed decisions.

The home: the most important purchase of our lives

At Modular Home, we know that the decision to purchase a home is the most important financial milestone for any family. Not only because of the financial effort it entails, but because it involves Choose the space where you can build memories and share all your experiences.That's why we advise you at every stage of the process, from the initial idea until you move into your new home.

How much do the extra costs add to the purchase price?

One of the points that most often generates doubts among buyers is what expenses should be added to the price one usually sees in the advertisements. Well, in 2025, the total cost of buying a home in Spain will not be reduced only to the value of the property, but must also take into account the entire set of administrative, notary, registration, management and other expenses taxes.

Approximately, you have to have a 10-12% additional on the purchase priceAlthough in some cases it can reach up to 15% depending on the autonomous community, the type of housing, and the financing chosen.

Self-promotion as an opportunity

At Modular Home, we have been championing self-development for years as the most transparent and efficient way to access quality housing. While in a purchase from a developer, the client pays a fixed price that includes not only the construction but also the developer's business profits, in self-development, the owner directly assumes each item and pays them at their exact value. Thus, the building permit fee is paid directly to the City Hall, without surcharges, and technical fees are paid through professional invoices, avoiding hidden additional costs.

Furthermore, Modular Home's industrialized system allows for shorter lead times and ensures quality, turning what was once a complex process into a guided and predictable experience. Therefore, more than just a simple procedure, self-promotion is a opportunity to save and gain control.

What is PEM and why is it essential?

One of the key concepts when talking about new construction is the PEM or Material Execution PriceThis term refers to the direct cost of construction: materials, labor, and all the resources needed to build the home. However, it is important to emphasize that the PEM It is not equivalent to the final price of the house or the sales price..

Why? Because other unavoidable expenses are calculated on top of that PEM, such as the municipal building permit, and because professional services (architect, surveyor, technical studies) and legal procedures (notary, registry, taxes) must be added to it. In other words: the PEM is the calculation basis, but never the whole thing. At Modular Home, we always break it down, so the customer knows from day one what's included and what's not.

The project and technical fees

No home can be built without a technical project signed by an architect and a optional address to oversee the execution. These fees are usually in the range of 10.000 to 15.000euros, depending on the complexity and size of the house. It should be noted that this expense, generally, not included in the PEM, and therefore should be considered as an additional item.

At Modular Home, we work with architectural firms that can handle the project, although the client also has the option of providing their own professionals. In both cases, the philosophy is the same: the budget is presented in a transparent, itemized manner so that the self-promoter knows exactly how much and who they are paying.

Building permit: the ICIO (2–4% of the PEM)

The building permit is another expense that should not be overlooked. In Spain, it is known as ICIO (Tax on Constructions, Installations and Works) and is calculated by applying a percentage to the PEM. It usually ranges between 2% and 4%, depending on the municipal ordinance.

Herein lies one of the advantages of self-promotion: the self-promoter pays this tax directly to the City Hall, without intermediaries or additional charges. In a traditional development project, the client never sees the details of the ICIO, as it is integrated into the final price set by the developer. However, at Modular Home, we treat it as what it is: an administrative cost that is settled at its exact amount.

Other expenses that accompany self-promotion

Beyond the project and the license, there are other common expenses to consider in any new-build home:

• Notary and Registry: when the new construction is declared in a public deed and registered in the Property Registry. The costs are usually between 000 and 1.600 euros in total, depending on the declared value.
• VAT and AJD: VAT is applied to the execution of the work and the contracted services, while the AJD depends on the autonomous community and is paid when registering the deed for new construction or when signing the mortgage.
• Mortgage (if applicable): financing a self-promotion involves additional expenses such as appraisal (about 500 -700 euros on average), the opening fee that the entity sometimes applies and the notary or registry fees linked to the loan.
• Preliminary technical studies: such as geotechnical and topographical, necessary to know the conditions of the ground before starting the foundation.
• Connections and connections: Bringing water, electricity or sanitation to the plot also entails a cost that must be estimated in the initial budget.

All of these amounts aren't always included in the initial general estimates that appear on real estate portals, but they're crucial for a realistic view.

Practical example of breakdown

Let's take a realistic case: a house with a PEM of 180.000 eurosTo this amount we should add:

• Project and technical management: around 000 Euros.
• Building permit (applying 3%): 400 Euros.
• Notary and Registry: some 200–1.600 euros.
• VAT and AJD: variables, depending on the autonomous community and applicable regime.
• Mortgage (if needed): appraisal, opening and other financial costs.

The result is a final budget that integrates all factors and, far from being an unforeseen additional cost, should be considered from day one to avoid surprises.

Self-promotion vs. purchase from promoter

Those who compare often wonder if it's really worth it to be a self-promoter. The answer is in the numbers: when buying from a promoter, the client pays the sale price This not only includes all the aforementioned expenses, but also a profit margin. In self-promotion, on the other hand, the owner assumes these costs. one by one and pays them at their real value, which translates into considerable savings.

Furthermore, being a self-builder allows you to freely make decisions about design, materials, and finishes, and to have the peace of mind that the money is going directly to the construction itself and not to intermediaries.

Conclusion on how much a home costs in 2025

In short, the costs of buying a home in 2025 depend largely on the path chosen. If you opt for self-promotion, the path requires greater involvement, but also offers more control, more transparency and real cost savings. The PEM is not the selling price, but the starting point from which licenses, fees and procedures are calculated, and knowing it is the key to budgeting well.

At Modular Home, we support our clients throughout the entire self-promotion process, from the technical project to the final delivery of the home, ensuring that each step is clear and that there are no hidden margins. Because building your own home isn't just about putting up walls: it's an opportunity to Manage your investment intelligently and turn a project into a tangible reality.

If you want to have a budget of the expenses you face. Get in touch contact with us and we will advise you.