Be very very careful.
We bought a plot of land just outside a village in the Axarquia in 2001 and our house was built on it in 2002. We moved into it in February 2003.
While waiting for the licence of occupation, we had our paperwork checked by a local lawyer, not the person who had done our conveyancing, and found out that the papers we thought were our building licence were not.
We have paid money to the town hall, we have 10 year construction insurance, but now have to wait until we have been here 4 years (or until the town hall include us in their new PGOU) before we can register our house on the land.
All this, including finding the track outside out house is a “cattle track” and we are subject to many restrictions by the Medio Ambiente, has caused “our dream house” to turn into a nightmare. We can’t take any equity out of the house because its not worth anything, the land is not worth anything without a building licence, and we can’t afford to go back to the U.K. until we have sorted everything out and sold it.
BUT we still see agents taking prospective clients around our area, looking at plots that don’t have planning pemission, that are on the market at around 100,000 euros.
So be very careful.