Things you need to know about buying new construction in Spain

When buying new construction property in Spain, there are some important things to be aware of that can affect your timeline, costs, and legal protections. Here’s a comprehensive overview:

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🏗️ 1. Understand the Type of Construction

• Off-plan (sobre plano): Buying before the property is built — you’ll be committing long before completion.

• Newly completed units: Often quicker to move into but may have less negotiation room.

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📜 2. Legal Protections & Guarantees

Spanish law gives new builds specific warranties from the developer:

• 10-year structural guarantee (estructura y cimentación)

• 3-year building systems guarantee (electrical, plumbing, etc.)

• 1-year cosmetic defects warranty (acabados)

These guarantees are backed by a builders’ insurance policy (seguro decenal) — make sure it’s in place.

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💼 3. Check Licenses & Approvals

Ensure the developer has:

• Building permit (licencia de obras)

• First occupancy license (licencia de primera ocupación) before you move in

Without these, you may face legal or financing issues.

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📅 4. Delays Are Common

Construction timelines in Spain — especially post-COVID — can be pushed back due to:

• Supply chain issues

• Labor shortages

• Permitting delays

Plan for realistic timelines and avoid fixed legal move-in dates without penalty terms.

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💶 5. Upfront Costs

In addition to the purchase price, expect:

• Deposit on reservation (often €6,000–€10,000)

• Contract deposit (typically 10% after signing the private contract)

• IVA (VAT) on new builds: 10% residential standard

• AJD (Documentary Tax): approx 1–1.5%

• Notary, land registry, and legal fees

These can add significantly to the total cost.

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📑 6. Review Contracts Carefully

There are usually two key documents:

➤ Contrato de Arras / Reserva

• Small fee to secure the property

➤ Private Purchase Contract (Contrato Privado de Compraventa)

• Dictates payments, timeline, penalties

Have a bilingual lawyer review the Spanish contract before signing!

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🧠 7. Payment Schedule

Typical structure for new builds:

• Reservation deposit

• Payment instalments during construction (linked to milestones)

• Final payment at completion

Be very clear on what conditions trigger each payment.

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🔍 8. Quality & Specification Details

Ensure the contract includes:

• Exact materials

• Brands of appliances and finishes

• Technical/specification sheet

Differences between sales brochure and contract can cost you later.

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📊 9. Taxes & Ongoing Costs

After purchase, budget for:

• IBI (property tax)

• Community fees (urbanizations often have maintenance costs)

• Utilities & waste tax

New builds often have higher community costs due to amenities.

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🏦 10. Financing New Construction

Banks may be more cautious with off-plan purchases, requiring:

• Higher down payments

• Proof of progressive payments

• Construction mortgage or special clauses

Always confirm with your lender before signing.

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⚖️ 11. Resale & Rental Considerations

New build apartments in urban areas can be desirable, but:

• Ask about rental market trends

• Check urban planning around the project

• Verify community rules & holiday-let restrictions

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🛠️ 12. Snagging & Handover

Before taking final ownership:

• Conduct a walk-through inspection

• Record defects

• Ensure they are fixed before final payment

This is called “acta de entrega.”

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🧑‍💼 13. Use Local Experts

Because laws vary by region (Comunidad), it’s smart to work with:

• A Spanish lawyer specializing in property

• An English-speaking agent familiar with new builds

• A surveyor or architect (técnico) for inspections