Nerja: 
Renovating a property in Spain, especially for expats, can be a daunting task due to the complex and often varying regulations across different regions. In this guide, we'll dive into the details of the renovation process in Malaga, focusing on the key legal and financial aspects to consider.
For smaller renovations, such as bathroom or kitchen upgrades, you'll likely need to submit a "Declaración Responsable" (Responsible Declaration). This is a sworn statement detailing the planned works and accompanied by a corresponding tax payment. It's essential to note that the specific requirements and tax rates can vary significantly between municipalities in Malaga.
Undertaking more substantial renovations, like extending your property or building a new floor, requires a more complex process. You'll need to obtain specific permits and likely engage the services of an architect to prepare a project. Be prepared for potential delays, as the approval process can be lengthy, depending on the municipality.
One of the most common mistakes property owners make is to delegate the entire renovation process to the builder, without closely monitoring the legal aspects. This can lead to significant problems. We’ve encountered numerous cases where clients have faced hefty fines due to their builders’ failure to obtain necessary permits. It’s essential to remember that ultimately, the responsibility lies with the property owner, not the contractor. To safeguard your investment and avoid potential legal issues, always verify that the builder has obtained the correct permits before starting any work. While it might seem like an extra step, it could save you from significant financial and legal headaches in the long run. By understanding the potential pitfalls and taking proactive measures, you can navigate the renovation process with greater confidence.
It's crucial to remember that as the property owner, you are ultimately responsible for ensuring all necessary permits and paperwork are in order. Failure to comply can result in hefty fines. Additionally, understanding the VAT implications is essential. While most renovations are subject to a 21% VAT, new constructions or property extensions often qualify for a reduced 10% rate. Consulting with a legal professional is highly recommended before embarking on any renovation project. They can provide expert guidance, ensuring you comply with all regulations and protect your investment.