Do you want to buy new construction in Spain? The purchase process is fundamentally different from that in Belgium or the Netherlands. After all, you are buying an unfinished product in a different legal system. This article guides you through the five crucial stages of the purchase process: from reservation to notarial deed, including essential checks to protect your investment.
Also listen to our podcast on buying new property in Spain at Youtube, Apple Podcasts or Spotify.
Step 1: The reservation contract (Contrato de Reserva)
What is the first step when buying new construction in Spain? The first legal step is to sign a reservation contract. This is a summary document (usually one page) that temporarily removes the property from the market, usually for a period of 30 days. This blocks the price and the specific plot or flat.
Unlike existing property (resale), conditions are strict in new construction:
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Reservation fee: You pay an amount between €6,000 and €11,000.
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Risk: The reservation amount is legally non-recoverable If you change your mind without a valid legal reason.
Expert Tip: "Never sign a booking contract without checking the promoter's basic details. Once signed, you will lose your deposit if the deal does not go through by your own choice."
Read more about the reservation contract.
Step 2: Legal checks
Between booking and compromise, the most important stage takes place: legal checks on the project. To secure your purchase, three vital points need to be verified before making further payments.
1. Building permit (Licencia de Obras)
Has a valid building permit been granted by the municipality? This is the basis of everything.
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Note: This applies not only to your property, but also to the urbanisation (swimming pools, communal areas). Without proper authorisation, a Belgian bank will no funding release.
What happens if planning permission is still pending?
2. Conformity of plans and materials
Do the permits match the commercial plans? We check the Plano de la Vivienda (housing plan) and the Memoria de Calidades (specifications). Deviations or changes between the approved project and actual construction later lead to high regularisation costs or even illegality.
3. Solvency and the Bank Guarantee
Does the promoter own the land and be financially sound? Spanish law requires promoters to provide a bank guarantee (Aval Bancario) to deliver for all advances you pay.
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Function: In case of bankruptcy of the promoter or late delivery, the bank guarantees that you will get your money back.
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Reality: Although required by law, not all promoters spontaneously offer this. Always demand this.
Read more about the bank guarantee in a sale on plan.
Step 3: The Compromise (Contrato Privado de Compraventa)
When does the purchase become final? After a positive examination, you will sign the private purchase agreement/compromise. This is a legally binding agreement that sets out all purchase conditions, modification clauses and the exact completion date.
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Payment schedule: From this point, interim payments (often tranches from 10% to 20% based on a fixed payment schedule) start.
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Security: Opt for payments through a third-party account or ask for each individual transfer a bank guarantee. This will safeguard your entire deposit.
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Delays: New construction projects in Spain are often delayed. By default, the compromise includes a deferral clause that allows the promoter to extend completion by 2 to 6 months without penalty.
Statistics: Our records show that more than 60% of Spanish new build projects is delivered with delay. Build in security for this.
Step 4: Delivery and Technical Review
Once construction is physically finished, you may not move in immediately. Four formal checks are required before the deed can be executed.
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Architectural Completion (Certificado de Final de Obra): The architect states that construction was done according to the plans. Here you will find detailed information on the completion of a new building in Spain.
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Certificate of conformity (LPO): Based on the above certificate, we ask the Declaración Responsable de Primera Ocupación to.
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Importance: Without this document, you will not get a connection to water/electricity and you may not enter the property do not rent through platforms such as Airbnb.
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Ten-Year Liability (Seguro Decenal): We check the policy of this compulsory insurance. It covers serious structural defects in the building for 10 years. Read more about ten-year liability insurance and warranty periods in Spain.
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Utilities: Checking the correct technical connection (Boletin de Agua y de Luz).
Step 5: The notarial deed (Escritura)
The final step is the execution of the deed at the Spanish notary. This is where you officially become the owner and receive the keys.
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Payment: The balance (often 50-60% of the price) is paid by bank cheque.
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VAT Tip: Are you planning additional works (e.g. outdoor kitchen)? Include these in the deed of purchase. That way you only pay 10% VAT (IVA) instead of the regular rate of 21% for retrofits.
After the deed: administrative processing
After signing, we take care of:
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Registration in the Property register (Registro de la Propiedad).
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Registration in the Land Registry (for IBI municipal tax). Note that the first assessment can take up to two years.
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Transfer of water and electricity contracts.
Additional requirements for buyers
For the process to go smoothly, you need to take care of two things in good time:
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NIE Number: Your tax identification number in Spain. Without an NIE, you cannot pay taxes to acquire your property. Learn more about applying for a NIE number here.
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Co-owners' Association: On completion, the Comunidad de Propietarios established. Although the promoter often chooses the first trustee, owners can change this by a simple majority at the first meeting. Read more about co-owners' association in Spain.
Frequently asked questions (FAQ)
Is a bank guarantee mandatory for new builds in Spain?
Yes, Spanish legislation (Ley 57/1968 and subsequent amendments) requires promoters to guarantee advances through a bank guarantee or insurance. This protects your money in case of bankruptcy or non-delivery.
Will I lose my deposit if I cancel the purchase?
Yes, in most cases the reservation amount and interim payments are non-refundable if you unilaterally decide not to proceed with the sale, unless there is a breach of contract by the promoter.
How much VAT do I pay on new builds in Spain?
On new-build properties on the Spanish mainland, you will pay 10% IVA (VAT). You also pay the Stamp Duty (AJD), which varies by region (usually - 1 - 1.5%).
Can I rent out the property once construction is complete?
No, you have the Licencia de Primera Ocupación (residential licence) and then you need to apply for a tourist rental licence from the tourism register of the relevant region.
About the author: Glenn Janssens is a lawyer specialising in Spanish real estate transactions and tax regulations. Since 2017, he has been helping Belgian and Dutch individuals and entrepreneurs to safely purchase and structure real estate in Spain. He guides files from A to Z: from due diligence, ownership and tax control to estate planning and optimisation for residents and non-residents. Thanks to his years of experience, hundreds of handled files and focus on transparent communication, Glenn makes complex Spanish legislation understandable and practically applicable for every property buyer.
update: December 2025
