Why do so many buyers choose new build?
New build combines modern architecture with comfort that an older property rarely offers. You often choose the finishes yourself, enjoy low energy costs and little maintenance, and also get legal warranties on the construction.
The flip side: with new build you often buy “off-plan”, so before the property is fully finished. That makes the process — and the protection of your instalments — just a little more important than with a resale property.
Current building standards, good insulation and a high energy rating — more comfort, lower costs.
Everything is new: for the first years the property needs hardly any attention.
With an early entry you often choose the flooring, kitchen, bathrooms or even the layout yourself.
New build is covered by warranties on finishes, installations and the structure.
Off-plan or key-ready?
Not every new-build property is at the same stage. Broadly there are two options, each with its own profile.
| Off-plan | Key-ready | |
|---|---|---|
| Construction stage | Still being built or to be built | Fully finished |
| Choice of finishes | Often a wide choice | Little to none |
| Price | Often more favourable | Market price |
| Waiting time | Months to years | Available immediately |
| Instalments | Yes, in stages — with a bank guarantee | Usually limited |
| What you see | Plans and renders | The real property |
The buying process step by step
A new-build purchase runs in clear steps. This is how the journey usually looks:
- 1Reservation
A limited amount takes the property off the market temporarily.
- 2Purchase contract
Price, payment schedule and completion date are set out — together with the bank guarantee for your instalments.
- 3Paying in stages
During construction, agreed interim payments follow. Every payment before completion should be covered.
- 4Construction & follow-up
Your lawyer keeps track of the permits and progress; you do not have to decipher anything.
- 5Handover & snagging
Together we inspect the finished property and record any defects.
- 6Notary & keys
At the notary you sign the deed, pay the balance and become the owner. The keys are yours.
Paying in stages — and the bank guarantee
With new build you rarely pay everything at once. After the reservation, several payments usually follow during construction, with the balance at the notarial transfer.
The crucial principle: every payment you make before completion should be legally protected. For this the developer provides an individual bank guarantee or insurance cover. Should a project unexpectedly go wrong, your prepaid amounts are covered under the applicable conditions.
Always ask for the bank guarantee for your specific property and have it checked before you pay a deposit. For us that is an absolute basic condition.
Everything about how that protection works, you can read in the guide Bank guarantee for new build.
Permits and legal checks
With new build too, a thorough legal check is essential. An independent lawyer — who serves your interests alone — checks that everything is in order before you pay or sign.
- The building licence (licencia de obra) of the project
- The legal situation of the land and the developer
- The individual bank guarantees on your instalments
- The contract terms and the payment schedule
- The occupancy licence (licencia de primera ocupación) at handover
Without the licencia de primera ocupación (LPO) you cannot connect utilities permanently or officially occupy the property. It should be in place at handover.
What warranties do you get on new build?
A new-build property in Spain is covered by legal construction warranties. Broadly, three periods apply:
Defects in the finishing of the property.
Defects in installations and elements that affect habitability (e.g. watertightness, pipes).
Structural and load-bearing defects, usually covered by a seguro decenal.
The exact warranties depend on the type of work and the applicable legislation; your lawyer checks these documents before the purchase is completed.
Handover and snagging
Before you become the owner, we inspect the property together. During this handover we check the finishes, the installations and any minor defects.
We record those points so the developer can correct them. This process is called “snagging” and is an important step before the final transfer at the notary.
What does new build cost on top of the price?
With new build you pay no transfer tax, but you do pay 10% VAT (IVA) plus stamp duty (AJD) — around 1.5% on the Costa Blanca and 2% on the Costa Cálida — together with notary, registry and lawyer fees. In total, reckon on around 13 to 14% on top of the price.
Financing (part of) your new-build? How much you can borrow as a non-resident and what it costs is in the guide Spanish mortgage for non-residents.
Pitfalls with new build
Never pay a deposit for a property that is still being built without watertight, individual bank cover for your property.
Relying only on the brochure or render. Check the developer’s reputation, the permits and the contract — a beautiful showroom says nothing about the legal situation.
Have the completion date set out concretely, together with what happens in case of delay. “Indicative” is not an agreement.
Only connect utilities permanently and move in once the licencia de primera ocupación has been issued.
How to buy new build with peace of mind
- Check the building licence (licencia de obra) and the developer’s reputation.
- Make sure every instalment is covered by an individual bank guarantee for your property.
- Have the contract, the payment schedule and the completion date checked by an independent lawyer.
- Know exactly which finishes are included and what are options (at extra cost).
- Plan a handover (snagging) before the final transfer.
- Factor in the buying costs: IVA + AJD + notary, registration and lawyer.
Have your new-build project assessed
Buying new build takes more than looking at a nice brochure. With more than 25 years of experience we guide you through the whole journey: from selecting the right project and checking the warranties to the handover and the aftercare.
Personal, transparent and in your own language — so you buy with confidence, even when you buy off-plan.
Peter and Anne buy off-plan in Finestrat
Peter and Anne fall for a new-build apartment in Finestrat, overlooking the Puig Campana. Completion is a year and a half away — precisely the moment they wonder whether their deposit is really safe.
Together with their adviser and an independent lawyer they go through everything: the permits, the developer, the payment schedule and — crucially — the individual bank guarantee on every payment. Only when everything checks out do they sign.
A year and a half later they do the handover together, have the final touches sorted and receive the keys — to a home they bought with complete peace of mind.
Frequently asked questions about new build
Is buying new build in Spain safe?
Yes, provided the project is properly checked and guided. Work with an independent lawyer who reviews the permits, contracts and warranties before you pay, and make sure every instalment is covered by a bank guarantee. Good preparation is the best protection.
What is the difference between off-plan and key-ready?
With off-plan you buy during the construction phase and wait for completion — often with more choice of finishes and a more favourable price. With a key-ready property everything is already finished, you see exactly what you are buying and you can usually move in or let it quickly.
How do payments work with new build?
Usually in stages: after the reservation, interim payments follow during construction, with the balance at the notary. Every payment before completion should be protected by an individual bank guarantee.
What is a bank guarantee for new build?
A bank guarantee (aval bancario) or insurance cover protects the amounts you pay in advance during construction. If a project is not completed according to the conditions, those amounts are recoverable under the applicable rules. We devote a separate guide to it.
What is the LPO (licencia de primera ocupación)?
The licencia de primera ocupación is the first-occupancy licence. Without it you cannot connect utilities permanently or officially occupy the property. It should be in place at handover.
What warranties do I have on a new-build property?
Broadly: 1 year on the finishes, 3 years on installations and habitability, and 10 years on structural defects (usually via a seguro decenal). The exact warranties depend on the type of work and the legislation; your lawyer checks them.
What happens during the handover?
Before the transfer, you inspect the property together with us and record any finishing points, so the developer corrects them. This process is called “snagging”.
What if the handover is delayed?
Construction projects can experience delays. What matters is that the completion date and the consequences of delay are in the contract, and that your instalments remain protected by the bank guarantee. Always have this set out in advance.
Can I choose the finishes myself?
Often yes, depending on the construction phase. With an early entry you sometimes choose flooring, kitchen, bathrooms or even the layout. The later you enter, the smaller the choice.
What does new build cost on top of the price?
No transfer tax, but 10% VAT (IVA) plus stamp duty (AJD, ± 1.5% in Valencia and 2% in Murcia), and notary, registry and lawyer fees. Reckon on around 13 to 14% extra. We prepare a personal calculation for every project.
Can I buy new build without travelling to Spain?
Many steps can be done remotely, via video meetings and a notarial power of attorney. We do recommend visiting the project and the surroundings at least once yourself before you finally decide.
This information is general in nature and does not replace legal advice. Warranties, permits and rates vary by project and region and may change — always have your purchase guided by an independent lawyer.
