In response to the current crisis, on 2 April the Junta de Andalucia issued a decree for local authorities to, where practical, eliminate unnecessary or disproportionate burdens upon the development of economic activities.
In a far sighted act as part of this, Marbella Town hall has ceased the lengthy process required to obtain the famous ‘License of First Occupation’, as previously required for new build properties. They have substituted it with a sworn ‘declaration of habitability’, shortening the process by months, or in some cases, years.
There are various benefits. According to the Junta decree text, this will reduce the delivery time of a finished work in six months. Additionally, in the residential sector, the financial savings to developers, and ultimately buyers, in terms of releasing capital, or saving interest, can be calculated as around 1500€ per month for each property. If this figure were applied to new home data nationally it would represent a saving of 170 million euros across the sector.
The authority will still be able to maintain administrative control because the declaration is submitted with authorisations and reports so that inspections can be carried out after. This puts greater responsibility on the developer because presenting incorrect, or false data could make them liable for administrative, civil and even criminal responsibility.
This is great news for the sector, especially in these times. Shortening the time to market of all properties now in construction can only help in the much needed economic recovery. For Marbella it is a gain in competitiveness and productivity showing improvement in efficiency of public administration. It remains to be seen how other authorities will copy this.
If you are waiting for a building license, or would like to know more about the legalities of building your home in Spain, we offer a free 30 minute consultation and would be happy to discuss your needs. Contact us today – we are open for business!