Comprehensive advisory for Spain's construction sector

Spain’s construction sector is one of the pillars of the country’s productive economy. With more than 367,869 active companies and nearly 1,484,372 workers registered with Social Security, it accounts for 10.6% of the European Union’s construction market — a position that reflects both the scale of the Spanish market and its relevance within the European project of energy transition and renovation of the built environment. The sector is experiencing a period of intense activity driven by residential demand, building energy renovation programmes backed by NextGenerationEU funds, and the tendering of major public infrastructure projects.

The fragmentation of the business fabric — more than three in four companies are micro-enterprises or self-employed — makes the sector one of the most exposed to employment, tax and regulatory contingencies. Planning law is managed at regional and municipal level, the VAT regime contains sector-specific reverse charge rules that differ from other industries, the Subcontracting Act imposes strict limits and documentary obligations across the supply chain, and occupational health and safety requirements are particularly stringent on building sites. Managing these dimensions well is what separates a profitable project from one that accumulates contingent liabilities.

At BMC we advise property developers, civil engineering contractors, installation and maintenance companies, and specialist subcontractors on all tax, legal and employment aspects of their operations. Our services include structuring the development vehicle (purpose-specific company, joint venture, UTE), tax planning for the development project from land acquisition onwards, reviewing the VAT reverse charge impact throughout the payment chain, urban planning and land registry due diligence, and drafting construction contracts (turnkey, unit-rate, and public-private collaboration agreements). We also assist with public tender bids and with preparing contractual terms for engagement with subcontractors.

On the employment side, construction is one of the sectors with the greatest exposure to joint and several liability for subcontractor debts, penalties for non-compliance with the Subcontracting Register, and workplace accidents with criminal consequences. Our employment law team advises on health and safety plans, multi-employer coordination obligations, applicable sector collective agreements (Convenio General de la Construcción) and the seasonal temporary redundancy schemes (ERTEs) common in the industry. We also manage applications for grants and subsidies covering energy renovation works, digital construction technology adoption and vocational training programmes.