#

Ease of Doing Business in

Spain

Spain Download Profile (1780.2KB, pdf)
Region OECD high income
Income Category High income
Population 46,418,269
GNI Per Capita (US$) 28,520
City covered Madrid

190

1

DB 2017 Rank

1

100

DB 2017 DTF (% points)

  • local_library
  • group
Topics DB 2017 Rank DB 2016 Rank info_outline Change in Rank DB 2017 DTF (% points) info_outline DB 2016 DTF (% points) info_outline Change in DTF (% points) info_outline
Overall 32 33 up
1
75.73 75.02 down
0.71
Starting a Business 85 79 down
6
86.61 86.30 up
0.31
Dealing with Construction Permits 113 111 down
2
65.95 65.89 up
0.06
Getting Electricity 78 71 down
7
72.99 72.96 up
0.03
Registering Property 50 50
-
73.88 73.88
-
Getting Credit 62 60 down
2
60.00 60.00
-
Protecting Minority Investors 32 30 down
2
65.00 65.00
-
Paying Taxes 37 45 up
8
83.80 82.74 up
1.06
Trading across Borders 1 1
-
100.00 100.00
-
Enforcing Contracts 29 36 up
7
69.48 67.63 up
1.85
Resolving Insolvency 18 25 up
7
79.62 75.83 up
3.79

Positive= Doing Business reform making it easier to do business.Negative= Change making it more difficult to do business.

DB 2017 Rank: 113

DB 2016 Rank: 111

Change in Rank: down2

DB 2017 DTF (% points): 65.95

DB 2016 DTF (% points): 65.89

Change in DTF (% points): up0.06

STANDARDIZED WAREHOUSE
Estimated value of warehouse: EUR 1,163,363
City: Madrid
Indicator Spain OECD high income
Procedures (number) info_outline 13.0 12.1
Time (days) info_outline 205.0 152.1
Cost (% of warehouse value) info_outline 5.2 1.6
Building quality control index (0-15) info_outline 11.0 11.3
  • Measure of efficiency
    No. Procedure Time to Complete Associated Costs
    1

    Request and obtain the official alignment (alineamiento oficial)

    Agency: Municipality of Madrid

    The certificate of alignment is issued by the Municipality of Madrid which provides the exact limit of the private property with respect to public roads.

    The cost is established by "Ordenanza fiscales y precios públicos Tasa por Prestación de Servicios Urbanísticos" under article 9. The official cost is €62.15 per 10 linear meters in the front of the building. In the Doing Business case study, the front of the building is assumed to be 30 meters, so the total cost would be €186.45.
    14 days EUR 186
    2

    Request and obtain a certificate of compliance (certificado de conformidad)

    Agency: Entidades Colaboradoras Urbanisticas - ECU

    Upon reception of alignment certificate, BuildCo must obtain a compliance certificate. This certificate is the provisional license which can be obtained from two agencies - Municipality or Entidades Colaboradoras Urbanisticas - ECU. According to the new Local Ordinance of the City Council of Madrid ("Ordenanza para la apertura de actividades economicas en la ciudad de Madrid").

    The ECU has 2 months to examine the documentation and grant the compliance certificate. Once the compliance certificate has been granted, it must be attached to the building permit application.

    The final construction permit is issued by the Municipality. Once the building license is issued by the Municipality of Madrid, BuildCo can proceed with the construction. For that reason this procedure cannot be simultaneous with the previous one.
    60 days EUR 5,902
    * 3

    Obtain approval of draft project proposal and implementation plan (Visado del proyecto básico y proyecto de ejecución) from College of Architects of Madrid

    Agency: College of Architects of Madrid

    The College of Architects of Madrid must approves BuildCo’s draft project proposal and implementation plan. In particular, the College of Architects of Madrid verifies the professional qualifications of the individual in charge of the construction work and validates the correctness and completeness of the documentation provided for the project with respect to regulations.

    The following documentation must be provided:

    -report on the project
    -implementation plan
    -administrative and technical conditions’ statement
    -measurements
    -budget
    -health and safety study

    The procedure is legislated in "Real Decreto 1000/2010, de 5 de agosto, sobre visado colegial obligatorio".

    The basis of the cost is in "Precios del Visado de los Trabajos profesionales". The formula used is the following: Cost of approval = Módulo x C x S x Qv x F / 6000. For a warehouse such as the Doing Business case study: M = 497.43; C = 9.00; S = 1300.6; Qv = 1.40; F = 0.85. Therefore, cost of approval is 497.43 *9*1300.6*1,40*0.85/6000 = 1,154.82 EUR

    3 days EUR 1,155
    4

    Request and obtain a building permit (licencia de obras)

    Agency: Municipality of Madrid

    The documents required to obtain the license are the following:
    • A standardized application form and sheet containing the characteristics of the construction properly completed
    • Proof of payment of tax
    • Declaration by one or more technical authors (architect and project design specialists) that the project conforms to the appropriate town planning regulations, and certificate of the structural feasibility, if necessary
    • Declaration of the promoter that a signboard has been posted at the site to inform the public that a building license has been applied for and to provide information about the proposed operations and activities
    • Three copies of the technical project designs signed by qualified technician(s) and countersigned by the appropriate official institute (or in this case, by the project’s administrative supervision office, accompanied by the application sheets of the appropriate professional association)
    • Confirmation of the deposit of a guarantee
    • Authorization program for independent parts of the construction or approval of partial projects, if requested by the promoter
    • In cases of renovation/expansion of buildings included in the general catalog of protected elements in historic city centers or historic centers of peripheral districts and historic colonies, a color photographic description of the existing building that permits, during enlargement operations, confirmation of the correct alignment of the enlargement plans with the historic city zoning restrictions
    • License of parceling, if the new construction needs previous parceling
    • Official alignment, if required
    • Project design of installation of telecommunications infrastructure Real Decreto 346/2011
    • Project design of the use of solar energy for heating (either as an independent project design or as part of the general project design), signed by a qualified technician and countersigned by the appropriate official institute, if required by the Regulation Concerning the Harnessing of Solar Energy for Thermal Use
    • Reglamento de seguridad contra incendios en los establecimientos industriales RD 2267/2004, de 3 de diciembre, modificado en parte por el RD 560/2010 de 7 de mayo
    • Security and health certification or a basic certification regarding RD 1627/1997 de 24 de octubre
    • Certify the destination of all the construction waste and demolition (RCD) according to the Law 5/2003 and amendments by Law 9/2010 (regarding abandoned and discharged wastes)

    This procedure is regulated by the Ordenanza Fiscal Municipal Reguladora del Impuesto sobre Construcciones, Instalaciones y Obras (ICIO), dated October 9, 2001 (in accordance with the amendments approved by Plenary Council dated September 25, 2013). According to article 19.1 of this Regulation, the granting of any building license is taxed at 4% of the construction value. Moreover, since the end of 2012, the time to obtain a building permit was reduced to approximately 45 days.
    45 days EUR 46,535
    5

    Notify labor authority of the start of construction (apertura del centro de trabajo) at the Ministry of Employment, Tourism and Culture

    Agency: Ministry of Employment, Tourism and Culture

    Upon authorization from the College of Architects of Madrid, and in line with “Orden TIN/1071/2010, de 27 de abril” BuildCo must notify the Ministry of Employment, Tourism and Culture of the start of construction.
    1 day no charge
    6

    Receive initial inspection

    Agency: Entidades Colaboradoras Urbanisticas - ECU

    According to the building license, one on-site inspection must be carried out during construction and one at the end of the process.

    If, during the inspections, the committee detects any possible infringements of the building regulations or criminal law, a proposal on sanctions must be made, and a copy of the written record is given to the public prosecutor. At minimum, administrative proceedings are initiated.

    In each inspection report, a record is included that provides information on every person involved and their roles, as well as on the facts, circumstances, dates, and results of the inspection. The record is regarded as a public administrative deed. The record must be signed by the inspector(s) and by the person to whom the construction works have been attributed at the time of the inspection. The inspection can only be conducted once the construction has started, for that reason this procedure cannot be simultaneous with the previous one.
    1 day EUR 375
    7

    Obtain completion certificate (visado del certificado final de obra -CFO) from College of Architects of Madrid

    Agency: College of Architects of Madrid

    Once construction works have been completed, the architect and surveyor must sign off a document certifying that the construction has followed the approved plans. Therefore, both individuals are responsible for the construction performed. This completion certificate must be approved by the College of Architects of Madrid.

    This procedure is legislated in "Real Decreto 1000/2010, de 5 de agosto, sobre visado colegial obligatorio".

    This procedure can only be done when the consturciton is finalized, for that reason this procedure cannot be simultaneous with the previous one.


    The basis of the cost is in "Precios del Visado de los Trabajos profesionales". The formula used is the following: Cost of approval = Módulo x C x S x Qv x F / 6000. For a warehouse such as the Doing Business case study: M = 497.43; C = 9.00; S = 1300.6; Qv = 1.40; F = 0.15. Therefore, cost of approval is 497.43 *9*1300.6*1.40*0.15/6000 =203.79 EUR"
    3 days EUR 204
    8

    Request final inspection in connection with the occupancy permit (licencia de primera ocupacion y funcionamiento)

    Agency: Entidades Colaboradoras Urbanisticas - ECU

    Private collaborating entities (ECU) carry out the inspection and issue the declaration of conformity at the end of the construction works.

    BuildCo must pay a fee to the collaborating entities. The amount is EUR 2600 for the first 500 square meters and additionally EUR 1.25 for every additional square meter. The cost details to request and receive final inspection is provided on the official website of the Municipality of Madrid, www.munimadrid.es. The legal basis is Agreement of the Local Government Board of the City Council of Madrid, dated September 26, 2013, setting the maximum price for services of the private collaborating entities for 2014 (Official Gazette of the City Council of Madrid N. 7015 (09/30/2013)).
    1 day EUR 3,601
    9

    Receive final inspection

    Agency: Entidades Colaboradoras Urbanisticas - ECU

    BuildCo. can receive a final inspection once the construction is finalized. For that reason this procedure cannot be simultaneous with the previous one.
    1 day no charge
    10

    Obtain occupancy permit (licencia de primera ocupación y funcionamiento)

    Agency: Municipality of Madrid

    As soon as construction is finished, in order to receive the first operating license (licencia de primera ocupación), the builder must submit the following documents to the ECU:
    • Final certificate of terminated construction (declaration of conformity), which must be signed by the technical director of the work. This certificate must declare that the constructed building is in accordance with the issued license. For modifications that do not need approval of the City Council (23.2 of the Ordenanza Municipal de Tramitación de Licencias Urbanísticas de 23 de diciembre de 2004), the builder has to detail these modifications.
    • If urbanization works have been carried out simultaneously with construction, and this urbanization was completed by the builder, the builder must present the final certification of these works.
    • Certificado final de obra visado por el Colegio Profesional y Plan de Autoprotección (Ordenanza Municipal de Tramitación de Licencias Urbanísticas de 23 de diciembre de 2004 - BOCM de 7 de enero de 2005)

    The purpose of the operating license is to verify that the construction and activities have been executed according to the project and the conditions under which the license had been granted, and that the construction has been completed and is adequate for urban determinations, the atmosphere and the security of its specific destination.

    60 days no charge
    11

    Register the new building

    Agency: Property Registry

    With the occupancy permit BuildCo. can register the newly built warehouse. Registration fees cannot exceed EUR 2,181.00 according to "Real Decreto 1427/1989, de 17 de noviembre, por el que se aprueba el arancel de los registradores de la Propiedad"

    Notary and registration fees depend on the value of the building. For a warehouse value like the one described in the case study, the cost to register the warehouse is approximately 1216.35 EUR ( Notary fee: 832.56 + Registration fee: 383.79). This can only be requested upon reception of the occupancy permit.


    18 days EUR 1,231
    * 12

    Request and obtain water connection

    Agency: Canal de Isabel II

    In parallel with registering the building. BuildCo. can request the water services. If the flow of water is less than 6 liters per second or if fewer than 25 counters are needed in one hall, only the following documents must be submitted:
    • Technical report (Memoria técnica), not required if the flow of water is less than 3 liters per second
    • Form 2.1.4
    • Confirmation of fee payment (EUR 12.28 must be paid at the counter)
    • Two copies of Form 2.1.3 (Impreso de Final de Obra)

    If the required flow of water is more than 6 liters per second or if more than 25 counters are needed in one hall, the following additional documents must be filed:
    • Project design from an engineer specialized in planning water facilities
    • Fee (in this case, a certain percentage of the budget)

    Since this procedure can be applied to another organization, it can be simultaneous with the previous one.
    10 days EUR 1,200
    13

    Register the new building at the Cadastre

    Agency: Cadastre

    Once the services are installed, BuildCo. must register the building with the cadastre.

    Documents to be submitted are the following:

    -Application forms together with the declaration form 902-N;
    -Photocopy of deed of new construction;
    -Construction completion certificate;
    -Photography of the front of the building (“fachada”) (size 10 x 15 cm);
    -Scale maps: of site, solar and final floor of each level;
    -Materials and quality description;
    -Material cost of execution of the works;

    Once the construction is registered it is discharged in the property tax (MOD. 902N).

    This procedure is legislated in “Ley del Catastro Inmobiliario aprobado por Real Decreto Legislativo 1/2004, de 5 de marzo”
    1 day no charge

    * Takes place simultaneously with previous procedure.

  • Measure of quality
    Answer Score
    Building quality control index (0-15) 11.0
    Quality of building regulations index (0-2) 2.0
    How accessible are building laws and regulations in your economy? (0-1) Available online; Free of charge. 1.0
    Which requirements for obtaining a building permit are clearly specified in the building regulations or on any accessible website, brochure or pamphlet? (0-1) List of required documents; Fees to be paid; Required preapprovals. 1.0
    Quality control before construction index (0-1) 1.0
    Which third-party entities are required by law to verify that the building plans are in compliance with existing building regulations? (0-1) Licensed architect; Licensed engineer; Private firm. 1.0
    Quality control during construction index (0-3) 2.0
    What types of inspections (if any) are required by law to be carried out during construction? (0-2) Inspections by in-house engineer; Unscheduled inspections. 1.0
    Do legally mandated inspections occur in practice during construction? (0-1) Mandatory inspections are always done in practice. 1.0
    Quality control after construction index (0-3) 3.0
    Is there a final inspection required by law to verify that the building was built in accordance with the approved plans and regulations? (0-2) Yes, final inspection is done by government agency; Yes, in-house engineer submits report for final inspection. 2.0
    Do legally mandated final inspections occur in practice? (0-1) Final inspection always occurs in practice. 1.0
    Liability and insurance regimes index (0-2) 1.0
    Which parties (if any) are held liable by law for structural flaws or problems in the building once it is in use (Latent Defect Liability or Decennial Liability)? (0-1)  Architect or engineer; Professional in charge of the supervision; Construction company; Owner or investor. 1.0
    Which parties (if any) are required by law to obtain an insurance policy to cover possible structural flaws or problems in the building once it is in use (Latent Defect Liability Insurance or Decennial Insurance)? (0-1) No party is required by law to obtain insurance . 0.0
    Professional certifications index (0-4) 2.0
    What are the qualification requirements for the professional responsible for verifying that the architectural plans or drawings are in compliance with existing building regulations? (0-2) University degree in architecture or engineering; Being a registered architect or engineer. 1.0
    What are the qualification requirements for the professional who supervises the construction on the ground? (0-2) University degree in engineering, construction or construction management; Being a registered architect or engineer. 1.0