Starting a construction company in Spain: costs, REA registration and earnings

A construction or renovation company in Spain is usually started, not bought: 2026 listings showed just 14 trading firms, with small ones asking €90,000–290,000.

Starting a company with a crew costs €60,000–120,000.

Before the first job you need REA registration, health and safety cover and insurance, and refurbishing a home is taxed at 10% VAT instead of 21%.

Thinking of starting a construction company in Spain?

Below: what is really on offer as a “ready-made construction company”, what starting from scratch costs, how the REA register of construction firms and the subcontracting rules work, what health and safety law requires, which insurance is mandatory, whose duty the works permit is, what a small renovation company earns with staff paid under the collective agreement and how it handles VAT. The page includes a payback calculator with an illustrative example.

Can you buy an existing construction company?

You can, but there is little on offer.

We reviewed about 280 sale and traspaso listings on Milanuncios for “reformas”, “construcción” and “fontanería”, plus the construction section of Bizalia (October 2026).

Only 14 of them were trading construction or renovation companies; the rest were building-supply shops, equipment, renovation services and buyers’ adverts. These are asking prices: they come down in a deal.

Examples: a renovation firm in Alboraya near Valencia with a 13-year history, a 220 m² warehouse, vans and tools — €119,000; a construction company in Aldaia with seven employees doing renovation, refurbishment and public works — €180,000; a firm in A Coruña sold on the owner’s retirement — €90,000; a kitchen and bathroom showroom with a fitting crew in Vilanova i la Geltrú — €90,000; a parquet and joinery company in the province of Barcelona with turnover of €0.5–1m — €100,000–250,000.

Why so few sales: a construction company runs on people, not premises. Its assets are the crew, its name with clients and the owner who prices jobs and runs sites.

When the owner leaves, most of the revenue leaves too.

Buying an SL “with a history” brings neither clients nor a crew: the REA register’s staff and training requirements are checked against reality, and with the shares the buyer takes on all of the company’s past obligations, including liability for work already handed over.

If the aim is to trade, it is cheaper and cleaner to start your own company; if you do buy, buy with full due diligence.

What it costs to start a renovation company from scratch

According to industry guides, a specialist tradesman working as an autónomo starts with €20,000–40,000, and a company with 3–5 employees and a warehouse with €60,000–120,000. The main items:

• Vans — €5,000–30,000 per vehicle, used or new; plus €500–1,200 a month for insurance and running costs.
• Tools and scaffolding — €1,000–10,000, depending on whether you take on towers, lifts and professional equipment.
• Setting up the SL, accountant, health and safety service, staff training — a few thousand euros at the start. What the company itself costs to set up is covered in Cost of starting a business in Spain.
• Insurance — liability and accident cover: about €1,000–2,000 a year for a very small firm, €2,000–5,000 for a company with 3–5 employees.
• Working capital — 3–6 months of fixed costs. In renovation this is the biggest item: you pay for materials and wages now, while the client pays in stages as the work progresses.

Typical job sizes: a bathroom — €4,000–12,000, a mid- to high-end kitchen — €10,000–30,000, a full flat refurbishment — €30,000–80,000.

REA registration and subcontracting rules

Subcontracting in construction is governed by a dedicated law, Ley 32/2006, with its regulation RD 1109/2007. What matters most for a new company:

• The REA register. A company that wants to work as a contractor or subcontractor on a construction site must register, before starting, in the Register of Accredited Companies (Registro de Empresas Acreditadas). The register is kept by the labour authority of the region where the company has its registered office, and the entry is valid throughout Spain (arts. 4.2.b and 6 Ley 32/2006, art. 3 RD 1109/2007). Without REA you will not be taken on in a subcontracting chain: a main contractor that hires an unregistered company is jointly liable for its debts to workers and to Social Security.
• What you confirm. Your own production organisation, people and equipment; managers and workers trained in occupational health and safety; a prevention set-up in line with the health and safety law, Ley 31/1995. All of this is confirmed by a declaration from the company’s legal representative (arts. 4.1–4.3 Ley 32/2006).
• How long it lasts. Registration is valid for three years; renewal must be requested within the six months before it expires, otherwise the entry is cancelled. Registration can be refused only if data or documents are missing (arts. 5.4 and 6.1 RD 1109/2007).
• Permanent staff. A company that regularly works on building sites must keep at least 30% of its workforce on permanent contracts; a new company from its seventh month of activity (art. 4.4 Ley 32/2006, art. 11 RD 1109/2007). A crew entirely on temporary contracts does not comply.
• Length of the chain. Below the main contractor there may be three levels of subcontracting: the third subcontractor cannot pass the work on. A self-employed worker and a company that supplies only labour with hand tools cannot pass work on either. The exception is one extra level approved by the site’s technical management (arts. 5.2 and 5.3 Ley 32/2006); for a breach, the main contractor is liable together with the subcontractor (art. 7.2).
• Subcontracting book. A contractor that brings subcontractors or self-employed workers onto a site first obtains a Libro de Subcontratación, stamped by the labour authority where the site is, and keeps it on site (arts. 13–14 RD 1109/2007, art. 8 Ley 32/2006).

Health and safety: plan, coordinator, training

• Safety plan. Each contractor draws up a health and safety plan (plan de seguridad y salud) for the site, approved by the coordinator before work starts. The coordinator is appointed by the property owner when more than one company or self-employed worker is on site. Before work starts, the contractor notifies the labour authority that the site is opening and attaches the plan (arts. 3.2, 7 and 19 RD 1627/1997).
• Who runs health and safety. An owner may run prevention personally only in a company with up to 10 workers and not in hazardous activities; construction work with a risk of falling from height is one of them (art. 11 and Annex I RD 39/1997). In practice a construction company signs up with an external prevention service (servicio de prevención ajeno).
• Training. The sector collective agreement requires every worker on site to complete an 8-hour initial health and safety course and a 20-hour course for their trade; training is evidenced by the TPC card (Tarjeta Profesional de la Construcción) (VII Convenio General del Sector de la Construcción, arts. 142–143).

Insurance: what is mandatory and what is not

Neither the subcontracting law nor the building law imposes a general duty on a renovation company to insure its liability.

But there are mandatory policies and payments — and they are often confused.

• Payments to workers under the collective agreement. For death, permanent absolute disability or severe disability from a work accident or occupational disease, the company pays the worker or family €47,000; for permanent total disability for their occupation, €28,000 (art. 69 VII Convenio General del Sector de la Construcción). Without a policy the company pays these sums itself, which is why they are insured.
• Trade-specific policies. An electrical installation company must hold professional liability insurance of at least €600,000 per claim, or €900,000 in the specialist category (ITC-BT-03, para. 5.8.c, RD 842/2002).
• Ten-year insurance is not yours. Ten-year insurance against structural defects must be taken out by the developer (promotor) of a new residential building, not the builder; someone building a single house for their own use is exempt (art. 19.1.c and second additional provision, Ley 38/1999, LOE). But the builder is liable to the owner: one year for finishing defects, three years for defects that make the building unfit to live in and ten years for structural elements, from handover (art. 17.1 LOE).

Liability insurance towards clients and third parties is not formally mandatory for every renovation firm, but main contractors, property managers and any client with a sizeable budget ask for it.

The works permit is the property owner’s duty

The licence or declaration for the works (obra menor or obra mayor) is filed by the owner of the flat or building, who also pays the municipal construction tax ICIO.

If the owner does not carry out the works personally, the tax can be collected from the contractor as a “substitute” taxpayer, who may then claim it back from the owner; the rate is set by the town hall, at no more than 4% of the cost of the works (arts. 101–102 TRLRHL, RDLeg 2/2004).

So starting work before the declaration or licence is filed is a risk for the company itself. What has to be filed is decided by regions and town halls:

• Andalusia. A declaration (declaración responsable) is enough for minor works that need no project and for works in existing buildings in towns that do not change footprint, height, buildable volume or the number of homes; anything else needs a licence (arts. 137–138 Ley 7/2021, LISTA).
• Valencian Community. Refurbishment that does not alter the structure and building maintenance without scaffolding on the street go by declaration; work may start as soon as the declaration is filed with its documents (arts. 233.1.c and 241.3 TRLOTUP, Decreto Legislativo 1/2021). Works that affect the structure also need a certificate from a certification body or professional association.
• Madrid. Since 2022, under the OLDRUAM ordinance, the main regime is a declaration; a licence is needed only for works listed in Annex I — for example, those affecting protected parts of buildings.

What a renovation company earns

According to industry guides, after materials and subcontractors a renovation company keeps 25–40% of revenue, out of which it pays wages, vans, the warehouse and the office.

The main cost is people.

Under the construction collective agreement of the province of Alicante, 2026 pay rose by 3% on 2025; a first-grade tradesman (oficial de 1ª, level VIII) on a daily rate earns a basic €42.79 a day and €24,967.52 a year across all items of the table, a labourer (peón, level XII) €23,938.96 a year; the company also pays €510.91 and €488.95 a year into the sector pension plan.

Employer Social Security contributions in construction are about 37% on top: 30.65% general plus 6.70% under the accident tariff for CNAE divisions 41–43.

A first-grade tradesman costs the company about €34,800 a year, and a crew of three tradesmen and a labourer about €137,800, or €11,500 a month.

Renovation company payback calculator

The calculator shows an illustrative renovation SL on the Alicante coast: the owner prices jobs and runs sites without a salary, with three first-grade tradesmen and a labourer on the payroll.

Nothing is bought; start-up spend is €60,000 (two used vans, tools and scaffolding, setting up the company and training, working capital).

Revenue is €40,000 a month excluding VAT (€480,000 a year), materials and subcontractors 55%, staff €11,500 a month, warehouse €900 a month, other costs (fuel and van upkeep, insurance, accountant, prevention service, advertising) €2,500 a month.

Pre-tax profit is €37,200 a year, about €30,100 after tax, and the €60,000 comes back in about 2 years.

Two caveats. First, the short payback here is the owner’s work, not the return on the business.

If you hire a site manager in the owner’s place (encargado de obra, level VI of the Alicante agreement) — about €39,000 a year including contributions — the example company slips into a small loss.

Second, the crew is an almost fixed cost. If revenue falls by 10%, pre-tax profit drops from €37,200 to €15,600; by 15%, to €4,800. Break-even is about €33,100 of revenue a month.

How to read the payback period and what to compare it with is covered in Payback period.

The most common risk for a renovation company is not a loss but a cash gap.

The client pays a deposit and then in stages, while materials and wages have to be paid earlier; one late payment on a large job stalls all the others.

The deposit, payment stages and retention until handover go into the contract before work starts. How to size the cash buffer is covered in Cash gap.

Taxes: 10% VAT, reverse charge and modules

• 10% VAT on home renovation. Renovating a flat or house is taxed at 10% VAT if the client is a private individual for their own home, a community of owners, or the home is let as a permanent residence; payment is by card, transfer or named cheque; the building was completed or refurbished at least two years earlier; and the company’s materials cost no more than 40% of the amount excluding VAT (art. 91.Uno.2.10º Ley 37/1992). Example: a bathroom refurbishment for €10,000 excluding VAT, with tiles and sanitaryware at €3,500: VAT is €1,000. If the company itself buys expensive sanitaryware for €4,500, materials exceed 40% and VAT is €2,100. The materials condition is the key argument when discussing price with a client.
• Reverse charge in subcontracting. When a subcontractor carries out work for a main contractor under a contract between developer and builder for constructing or refurbishing (rehabilitación) buildings, VAT is accounted for not by the subcontractor but by the recipient of the work (art. 84.Uno.2º.f Ley 37/1992). The subcontractor invoices without VAT and reclaims the VAT on its own purchases from the tax office — the money arrives later, and that too needs working capital. Whether a particular job counts as rehabilitación is decided with a tax adviser; the rule does not apply to private clients.
• Modules. Construction and renovation work is not on the list of activities eligible for modules in 2026 (Orden HAC/1425/2025): a self-employed builder pays tax on actual profit.
• SL. The company pays corporate tax: in 2026, with turnover up to €1m, 19% on the first €50,000 of profit and 21% above that. How to take profit out is covered in Salary or dividends from a Spanish SL.

What to check if you buy an existing company

1. REA and staff. Is the registration current and when is it due for renewal, are 30% of staff permanent, does everyone have health and safety training and a TPC card.
2. Liability for completed jobs. With the shares of an SL the buyer takes on the company’s liability for work already handed over — up to ten years for structural elements. Ask for a list of jobs from the last ten years, complaints and lawsuits.
3. Figures and clients. Revenue by year from bank statements, VAT returns (modelo 303) and corporate tax returns; the share of the three largest clients; signed contracts for future work. If everything rests on the seller, agree that they stay for a transition period.
4. Debts. A buyer of a going concern as a whole is liable for the seller’s tax debts unless, before the deal, it obtains a tax office certificate on them, issued within 3 months (arts. 42.1.c and 175.2 LGT); for debts to Social Security (art. 168.2 LGSS); and employees transfer to the buyer with all their rights (art. 44 ET). When you buy shares, all debts stay in the company and become yours.
5. Access to public contracts. For public works contracts of €500,000 or more, a company must hold contractor classification (art. 77.1.a Ley 9/2017). If the seller points to public contracts, check the classification and its validity.

How a seller justifies the price is covered in How to value a business for sale.

If you are moving to Spain for this business

A non-resident can set up a renovation company, but a non-EU citizen can live in Spain and run it personally only with a residence permit — usually a self-employment permit, for one year at first.

The golden visa has been abolished, and the startup visa does not suit an ordinary business of this kind.

How the self-employment permit works and how it differs from an employment permit is covered by Relotus in «Cuenta propia in Spain».

The sensible order is to confirm the permit first and only then buy vans and hire a crew.

Frequently asked questions

How much does it cost to start a construction company in Spain?

According to industry guides, a self-employed tradesman starts with €20,000–40,000, and a company with 3–5 employees and a warehouse with €60,000–120,000. The main items are vans, tools and scaffolding, insurance, health and safety training and working capital for 3–6 months.

Can you buy an existing renovation company in Spain?

Yes, but there is little on offer: October 2026 listings showed 14 trading companies, with small renovation firms at €90,000–290,000. The real value of such firms is the owner and the crew, so buying without a transition period with the seller is risky.

What is REA and do I need to register?

REA is the register of accredited construction companies. A company working as a contractor or subcontractor on a site must be in it before starting. The entry is made by the regional labour authority and is valid throughout Spain for three years.

What VAT applies to renovating a flat in Spain?

10% if the client is a private individual for their own home or a community of owners, the building is at least two years old, payment is not in cash and the company’s materials cost no more than 40% of the amount excluding VAT. Otherwise, 21%.

Is insurance mandatory for a renovation company?

There is no general duty to insure liability, but clients and main contractors ask for a policy. Payments to workers under the construction agreement — €47,000 and €28,000 for accidents — are mandatory, and electricians must hold a policy of at least €600,000.

Who gets the renovation licence — the owner or the company?

The licence or declaration is filed by the property owner, who also pays the ICIO tax. But if work starts without the paperwork, the tax can be collected from the contractor, so the company checks the permit before starting.

How much does a renovation company earn in Spain?

In the illustrative example, with revenue of €480,000 a year and a crew of four, the company makes about €30,100 after tax if the owner runs the sites without a salary. Hire a site manager in the owner’s place and it slips into a small loss.

Key points about a construction company in Spain

• A construction company is usually started: few trading companies are for sale, and buying an SL passes its past obligations on to you.
• A company with a crew starts at €60,000–120,000; the biggest item is working capital, because clients pay in stages.
• Before the first site: REA registration, 30% permanent staff, a prevention service and worker training.
• Ten-year insurance is the developer’s duty, while the builder is liable under the LOE for one to ten years.
• VAT on home renovation is 10% while materials stay within 40% of the price; in the example the company pays back in 2 years only thanks to the owner’s work.

Sources

• Ley 32/2006 on subcontracting in construction — BOE; RD 1109/2007 — BOE; RD 1627/1997 — BOE; RD 39/1997 — BOE.
• Ley 38/1999 (LOE) — BOE; RD 842/2002 (REBT, ITC-BT-03) — BOE; TRLRHL (RDLeg 2/2004) — BOE; Ley 9/2017 — BOE.
• Ley 7/2021 (LISTA, Andalusia) — BOE; TRLOTUP (Decreto Legislativo 1/2021, Valencian Community) — DOGV; OLDRUAM (Madrid) — EY summary.
• Ley 37/1992 (VAT) — BOE; Orden HAC/1425/2025 (modules for 2026) — BOE; LGT — BOE; Workers’ Statute — BOE.
• VII Convenio General del Sector de la Construcción (BOE No. 228, 23.09.2023) — text at cnc.es; 2025–2026 pay tables of the Alicante province construction agreement — Noticias Jurídicas; Orden PJC/297/2026 (contributions) — BOE.
• Cost, margin and job-size benchmarks — L’Express Franchise, Ayuda T Pymes.
• Company sale and traspaso listings — Milanuncios, Bizalia, October 2026.