The many benefits of buying a prefab home in Spain

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prefab home

In recent years, the market for manufactured homes has seen significant growth. Due to a number of advantages, purchasing a prefab home is no longer seen as a low-quality alternative but an attractive option, both for the environment and the wallet.

The increased demand for manufactured homes has heightened competition among manufacturers, leading to higher quality and a broader selection. In Spain, the demand for prefab homes has also risen. According to data from the Spanish Association of Prefabricated Home Manufacturers (AFCA), sales of this type of home increased by 20% in 2022.

The main reasons in Spain are firstly the economic crisis, which has stimulated the search for cheaper alternatives. Additionally, there’s an increased demand for sustainable and energy-efficient homes, continuous improvement in the quality of prefab homes, and greater accessibility to financing.

This modern housing option is not only affordable but can also offer financial benefits, such as tax advantages, since the total tax amount paid is often much lower than when purchasing a home on the traditional real estate market. Here’s an overview of the main benefits:

Competitive pricing of a prefab home

Manufactured homes are generally more affordable compared to traditional houses. This advantage is due to the construction being carried out in specialized facilities, optimizing processes and reducing associated costs.

Prefab homes are more energy-efficient

Prefabricated homes are designed with energy efficiency criteria in mind, offering lower energy consumption and significant savings on energy bills.

Faster construction time for prefab homes

The construction speed of prefabricated homes is significantly quicker than that of traditional homes, a substantial advantage for those who need a house quickly.


Prefabricated homes are made with sustainable and environmentally friendly materials, making a prefab home a greener housing option.

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Customization in prefab homes

Despite their prefabricated nature, these homes offer a high degree of customization. Buyers have the freedom to choose from a variety of designs, materials, and finishes.

Versatile offering

Manufactured homes are not limited to single-family homes; their versatility allows them to adapt to various functions, from offices to hotels to schools.

Advanced technology

The application of technology in the construction of prefab homes has made remarkable progress in recent years, improving the quality of materials, energy efficiency, and comfort.

Prefab homes are an accessible option

Prefab homes are an accessible option for those who find traditional homes out of reach. The asking price for manufactured homes is often much lower, with homes available for less than €40,000, particularly attractive given the rise in the average house price in Spain.

No Transfer Tax (ITP)

One of the main tax advantages of choosing a prefab home is the elimination of the transfer tax (ITP). Unlike second-hand homes, prefab homes bought new are not subject to this tax. The ITP, which varies between 6% and 10% depending on the autonomous community, represents a significant saving for buyers of prefab homes.

Mortgage costs

Another financial advantage in the realm of manufactured homes is the elimination of mortgage closing costs typically present in conventional real estate transactions. While banks usually require 10% of the home’s value to cover these costs when acquiring conventional property, these expenses are not present when buying a manufactured home. The reason is that financial institutions can only finance an asset that is not real estate once the corresponding bureaucratic process is completed.

Financing prefab homes

Financing for prefab home projects is done through self-builder mortgages. The contractor receives the money gradually as the construction progresses. However, 10% VAT is paid on each of the mortgage advances, which must be borne by the bank customer.

Also read: What you need to know before buying a prefab home in Spain

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