Spain
The permuta is Spain's classic owner-friendly deal: you hand over the plot and receive finished apartments — typically 25–35% of what gets built — with no construction risk on your side.
Edificabilidad per PGOUM defines the envelope. ECU private verification accelerates licences. Permuta double-taxation (ITP/VAT both legs) shapes structuring.
- Title system
- Registro de la Propiedad (near-conclusive) + notarial deeds; Catastro parallel for tax.
- Foreign ownership
- No restrictions (NIE required); proposed non-EU buyer surcharge stalled in Congress — not law as of Jul 2026.
- Authorities
- Registro de la Propiedad + Ayuntamiento de Madrid under PGOUM; Comunidad de Madrid for sector plans.
- Zoning metric
- Edificabilidad (m² buildable per m² land) per PGOUM, central Madrid ~1–4; 10% municipal share of new-sector gains.
- Height control
- Cornice/street-width rules in Centro (~6–8 floors); towers only in designated operations (Castellana, Madrid Nuevo Norte).
- Building code
- CTE (Código Técnico), Eurocode-aligned; private ECU verification accelerates licences.
- Approvals & timeline
- Licencia de obras ~6–12 mo Madrid (ECU faster); raw-land sector planning 2–5 yrs; first-occupancy licence at completion. (~6–14 months)
- Transfer taxes & fees
- ITP 6% resale land (Madrid); new-build 10% VAT + ~0.75% AJD; plusvalía municipal on land gains.
- Foreign capital
- Golden visa terminated Apr 2025; SOCIMI REIT regime favourable; EU repatriation free.
Common JV structures
Land-as-Equity SPV
20–50%Owner conveys land into a new project company at an agreed value; that value becomes the owner's equity stake. Developer and investors contribute cash and expertise; profits distribute through a waterfall (capital back → preferred return → promote).
Ground Lease JV
4–6%Owner keeps the freehold and grants a 49–99 year lease. Developer builds and owns the improvements for the term, paying ground rent (often ~4–6% of land value, with resets). Land and buildings revert to the owner at expiry.
Permuta / Dation-style Unit Swap
25–35%Owner transfers the plot and is paid in finished units of the future building (typically 25–35% of buildable area), transferred at completion. Spain and Portugal's classic owner-friendly structure; taxed on both legs — structure with advice.
Forward Funding / Forward Sale
5–15%An institution buys the land day one and funds construction in draws (forward funding), or contracts to buy the completed building at a fixed price (forward sale). The developer earns a development margin; the owner usually exits cleanly at the land sale.
- ⚠ National housing-law politics (rent caps; Madrid lighter-touch)
- ⚠ Licence timing variance
- ⚠ Construction labour shortage
Cheapest big-4 EU cost base; labour is the constraint.