New-build and off-plan purchases
With new-build properties, every payment must relate to a verifiable project, contract and form of protection.
Buying directly from a developer may mean reserving a property that is still under construction. Risk cannot be managed by looking only at plans and specifications: you need to check who the developer is, what can be built, how payments are documented, what guarantees are in place and what must be ready before receiving the keys.
Short answer
Buying a new-build property requires different due diligence from a resale purchase
For a second-hand property, the main focus is on reviewing an existing property and its current status. With a new development, the buyer may also be financing part of the process through advance payments and relies on the developer to complete the construction, obtain the required documentation and deliver exactly what was contracted.
Developer
Verify the selling entity, its legal relationship with the plot and who assumes the development obligations.
Licences
Construction and occupancy require the relevant licences and authorisations under the applicable regulations.
Advance payments
Amounts paid during construction are subject to a specific guarantee regime when the legal requirements are met.
Handover
The final signing must coordinate the completed property, technical documentation, occupancy, deed, payments and keys.
The term “new build” describes a broad commercial reality. To determine taxes, guarantees and documentation, you need to identify the specific legal transaction, the stage of construction and the location.The specific tax article retains the VAT/AJD intention to avoid duplication.
1 · Developer, plot and project
Do not buy a model: identify who has the capacity to develop the project and which project the contract supports
The Building Regulation Act defines the developer as the party that decides on, promotes, plans and finances the construction work. Its obligations include holding a right over the plot that permits construction, managing the relevant licences and authorisations, and providing the purchaser with the required documentation.
- Company name, CIF/NIF, registered address and Land Registry details of the seller/developer.
- Land Registry identification of the plot or property and the developer's relationship with the land.
- Building licence and any other authorisations applicable to the project.
- Identity of the architect and contractor where this is a first transfer.
- Actual stage of construction and contractual handover date.
National framework: Building Regulation Act 38/1999. Planning regulations, the specific licence and occupancy also require compliance with the applicable regional and municipal regulations.
Request the relevant information/document and check its scope. “Licence applied for”, “licence granted” and “construction started” are different stages.
- Do not assume that advertising is equivalent to administrative authorisation.
- If the development is at a very early stage, pay particular attention to what payments are requested and what protection applies to them.
2 · Information before entering into a contract
Plans, floor area, specifications, price and handover must be sufficiently defined
For business or professional sales to consumers, Royal Decree 515/1989 establishes a national framework for information about the property. Autonomous communities may develop their own consumer protection regulations and, where they have full jurisdiction, part of this Royal Decree applies on a supplementary basis.
Plans and floor areas
Site plan, dwelling floor plan, usable floor area, communal areas and ancillary services.
Materials
Information on materials, insulation and the features of the building, dwelling and communal elements.
Price and payments
Total price, payment method, deferred amounts, due dates and planned payment methods.
Authorisations
Information on the authorisations required for construction and on the use or occupancy document where applicable.
Completion date
If the dwelling is not finished, the completion date and construction stage must be clearly stated.
Land Registry identification
Property registration details or an indication that it has not yet been registered, depending on the stage of the development.
Within the scope of Royal Decree 515/1989, the information, features and conditions relating to construction, location, services, facilities, acquisition, use and payment included in the offer, promotion or advertising are enforceable even if they are not expressly stated in the contract.
3 · Reservation and private contract
The contract must turn commercial promises into verifiable obligations
A new-build contract should be read as a complete system: it identifies the unit, annexes, price, schedule, specifications, handover, permitted changes, financing and the consequences if either party fails to comply. The label “reservation” or “private contract” does not replace an analysis of its clauses.
- The dwelling, garage, storage room and other annexes must be clearly identified.
- Floor plan and specifications document included or referenced unambiguously.
- Total price, taxes, amounts already paid and remaining payment schedule.
- Date or objective handover mechanism, and how delays are handled.
- Conditions for changes to the project, materials or layout.
- Reference to the guarantee for advance payments and the deposit account, where applicable.
- The developer’s financing position and possible mortgage subrogation, if offered.
Calling an amount a “reservation” does not in itself determine its legal treatment or whether it falls within the LOE advance-payment regime. The timing, purpose of the payment, contract and circumstances of the development are what matter.
4 · Advance payments
Before each transfer, check the account and the guarantee document
The first additional provision of Law 38/1999 governs amounts paid on account during residential construction. From the time the building permit is obtained, developers receiving advance payments must guarantee their repayment in the cases provided for and channel them through a special account separate from the developer's other funds.
From the building permit
The legal obligation to provide a guarantee is expressly established from the time the building permit is obtained.
Bank guarantee or surety bond
The guarantee may be structured through surety insurance or a joint and several bank guarantee issued by an authorised entity, subject to legal requirements.
Special account
Advance payments must be deposited into a special account, separate from other funds and intended for construction-related expenses.
Individual guarantee
When the sale and purchase agreement is executed, the developer must provide the document evidencing the individual guarantee for the amounts to be paid in advance.
The law extends the guarantee to amounts paid by buyers, including applicable taxes, plus statutory interest, within the prescribed framework and conditions.
Do not automatically extrapolate the legal text. If money is requested before the building permit is obtained, specifically review the nature of the payment, the contract and the protection offered before making a transfer.
Advance payment checklist
- What contractual obligation does this payment create?
- Has the building permit been obtained and verified?
- Does the receiving account match the contractual/special account specified?
- Do I have the corresponding individual guarantee document?
- Does the receipt clearly identify the development, buyer and purpose?
5 · Changes during construction
A specifications schedule should not become unlimited authorisation to substituir what was promised
The national consumer information framework makes certain advertised characteristics enforceable. It also regulates the documentation of alterations requested by the buyer and requires notification and consent for certain unforeseen alterations that affect the price.
- Keep advertising materials, plans, renders, the specifications schedule and contract versions.
- Require any buyer selection or upgrade to be documented, including its price and impact on the timeframe.
- Review clauses allowing the substitution of materials with equivalent alternatives and their limits.
- Compare the delivered property with the specifications actually agreed.
The more precise the initial documentation, the less will need to be “interpreted” at the end.Keep a chronological file of offers, appendices, change emails and supporting documents.
6 · New-build taxation
National VAT and regional AJD must be treated separately
As of 8 August 2026, the AEAT states that, in the common VAT territory, first transfers of new homes by the developer are subject to VAT. The standard rate for residential property is 10 %, with 4 % for certain special-regime or publicly promoted subsidised housing. AJD and any rate, reduction or relief must be checked in the relevant autonomous community or territory.
First delivery
In the common VAT territory, the first transfer by the developer is governed by the VAT framework explained by the AEAT.
Standard residential rate: 10 % · see exceptions.
Territorial jurisdiction
Do not publish a single percentage for all of España. The rate and any available relief depend on the applicable jurisdiction.
Special regimes
Canarias, Ceuta and Melilla require an analysis of their specific indirect taxation and should not automatically be assigned the mainland/Balearic treatment.
7 · Completion, occupancy and handover
Handover should conclude the construction process, not open a new phase of uncertainty.
The LOE requires the relevant administrative licences and authorisations for construction and occupancy. The specific document may be called a first occupancy licence, certificate of habitability or equivalent, depending on the applicable regulations. The LOE also provides for as-built documentation forming part of the Building Book.
| Before signing the deed/taking handover | What to check | Why it matters |
|---|---|---|
| Completion | Final certificate and the actual condition of the property/development. | Distinguish between completed construction work and early commercial handover. |
| Occupancy | Licence, certificate or equivalent document required by the competent authority. | Evidence of the administrative framework for occupancy under the applicable regime. |
| Building Book | As-built documentation, project parties and use/maintenance instructions. | It preserves technical information and guarantees for future use. |
| Compliance | Compare plans, specifications, annexes and documented changes against what has been delivered. | Identify discrepancies before or at the time of handover. |
| Payments | Final statement, VAT, supporting documents and outstanding balance. | Avoids duplicate payments and makes it possible to trace all amounts. |
| Deed/Property Registry | Exact identification of the property and annexes, title and Registry filing. | Formalises the acquisition and enables registration to be completed where applicable. |
An inspection of finishes before or around handover is a useful practice for documenting visible issues. Do not present it as a substitute for contractual or legal rights, or as a universal state requirement for a sale and purchase to exist.
If there are issues, check how they are documented, what rectification period is accepted and whether the signature includes waivers or statements that do not reflect reality.
8 · Liability for defects
One, three and ten years are liability periods for categories of damage, not three identical insurance policies
Law 38/1999 calculates these periods from acceptance of the works without reservations or from rectification of the reservations. The framework distinguishes between finishing, habitability and structural defects.
Finishing or completion
The contractor is liable for one year for material damage arising from workmanship flaws or defects affecting finishing or completion elements.
Habitability
For three years, liability covers material damage arising from defects that result in non-compliance with habitability requirements defined by the LOE.
Structure
For ten years, liability applies to certain structural damage that compromises mechanical strength and stability.
The second additional provision of the LOE requires the guarantee under Article 19.1.c) for buildings primarily intended for residential use, subject to the legal exceptions provided for, such as certain cases of individual self-development. It should not be claimed that identical mandatory state insurance policies of 1, 3 and 10 years exist for every development.
9 · Developer and buyer financing
A construction mortgage and your purchase mortgage are different decisions
Many developments are financed through a developer mortgage divided among the units. If the buyer is proposed to assume an existing loan arrangement, the consumer information framework requires details of the deed, registration, mortgage liability, maturity dates and relevant amounts.
- Ask whether there is a mortgage over the parent plot or the unit.
- Identify whether the commercial option is assumption, cancellation or independent financing.
- Do not assume that the developer’s approval means your bank will approve your loan.
- For a first sale, carefully review any attempt to pass on to the buyer title-related costs that legally fall to the seller.
If you need a mortgage, arrange the valuation, approval and documentation well in advance. A purchase contract does not automatically become conditional on obtaining a mortgage unless that condition has been agreed.
Common mistakes
Eight mistakes that increase the risk of buying off-plan
Paying without a guarantee
Transferring funds without checking whether the payment falls within the legal framework and without receiving the corresponding guarantee documentation.
Failing to verify the licence
Confusing an application, a commercial expectation or the start of marketing with an approved building licence.
Losing the marketing materials
Failing to retain plans, brochures, specifications and communications describing what was offered.
Ambiguous completion date
Accepting a date or wording so open-ended that it is difficult to determine when a delay has actually occurred.
Late mortgage arrangements
Assuming financing will be resolved at the end even though the contract requires completion on a specific date.
Copying AJD
Using the rate from another autonomous community or territory to calculate the development budget.
Taking handover without documents
Coordinating handover solely around the keys and final balance, without reviewing completion, occupancy and the applicable technical documentation.
Confusing guarantees
Mixing up advance payment guarantees with defect liability periods and ten-year structural insurance.
Example process
How to organise an off-plan purchase without losing control of the documentation
| Stage | Buyer's action | Key document or check |
|---|---|---|
| Selection | Identify the unit, ancillary elements, price and schedule. | Plans, specifications, developer and development details. |
| Before paying | Review the reservation agreement/contract and the nature of the payment. | Licence, payment account and refund terms. |
| Contract | Set out specifications, completion and advance payments. | Contract + appendices + individual guarantee where applicable. |
| Construction | Keep records of payments and changes. | Receipts, updates and signed amendments. |
| Pre-handover | Check the property and documentation. | Completion, applicable occupancy authorisation, Building Book and defects. |
| Notary | Coordinate the balance, taxes and deed. | Deed, payment methods, IVA and Land Registry documentation. |
| Afterwards | Complete tax and registration formalities and retain guarantees. | Tax settlements, registration, policies, manuals and reports. |
Relevant professional support
With new-build properties, relevance matters more than a generic recommendation
Look for professionals who work in the development's location, speak your language and have experience with new-build buyers, developer contracts, financing and handover coordination.
Official sources
Legal and institutional basis used
Verified sources for this publication as of 8 August 2026. Planning licences, occupancy authorisations and certain consumer or tax matters also require the competent regional, provincial or municipal source for the specific location.
Related guides
Continue with the canonical page that answers each question
This page is the in-depth guide to the process and risks of new-build properties. The comparison with resale properties, detailed taxes, reservation agreements, general due diligence and the situation of foreign buyers remain on separate URLs.
Frequently asked questions
Buying a new-build or off-plan home in España
Yes. In an off-plan purchase, the buyer makes commitments before completion, so the developer, project, applicable permits, contract, payment schedule, guarantees for advance payments and delivery conditions should be reviewed particularly carefully.
The first additional provision of the Building Regulation Act requires, from the time the building permit is obtained and within its scope, that the repayment of advance payments, plus applicable taxes and legal interest, be guaranteed by surety insurance or a joint and several bank guarantee. When the purchase contract is signed, the developer must provide the relevant guarantee document, individually allocated to the amounts to be paid in advance.
This should not be assumed simply from the name given to the payment. Legal protection depends on whether the payment falls within the applicable regime and meets its conditions. Before transferring money, it is advisable to check the contract, permit, designated account and guarantee document. Payments made before the permit is obtained require specific review and should not be treated as though the law says exactly the same thing at every stage of the development.
For advance payments covered by its regime, the Building Regulation Act provides that if construction does not begin or the home is not delivered, the buyer may choose either to terminate the contract and receive repayment of the amounts paid, applicable taxes and legal interest, or to grant a formally documented extension with a new date. The contract and the specific facts should be reviewed before taking any action.
In the common VAT territory, the AEAT states that the first sale of a newly built home by the developer is subject to VAT and that the general rate applicable to housing is currently 10 %, with a rate of 4 % for certain special-regime or publicly promoted social housing properties. AJD and its rates or reliefs must be checked with the competent jurisdiction. Canarias, Ceuta and Melilla have special indirect tax regimes that must be dealt with separately.
The Building Regulation Act provides that occupancy requires the licences and administrative authorisations applicable under the relevant regulations. In addition, its advance payment regime refers to the certificate of habitability, first occupancy licence or equivalent document issued by the competent authority. The name, procedure and specific requirements depend on the regional regulations.
The Building Regulation Act provides that the documentation for the completed works, including the project with approved amendments, the handover certificate, identification of the parties involved, and instructions for use and maintenance, constitutes the Building Book and must be handed over to the end users.
The Building Regulation Act establishes liability periods of one year for certain finishing or workmanship defects attributable to the contractor, three years for damage affecting habitability requirements, and ten years for structural damage, calculated from acceptance of the works or the rectification of reservations. These periods should not be confused with identical mandatory insurance for all three cases: the ten-year structural warranty is the one generally required by law for buildings primarily intended for residential use, subject to the statutory exceptions.
Advertising and information provided to consumers have significant legal effect and should not be treated as mere commercial references. Royal Decree 515/1989 requires clear information on features, materials, price, payments and the handover date; in addition, certain changes affecting the price and alterations requested by the buyer must be documented under the terms set out in that regulation and the applicable consumer protection rules.
Actualidad inmobiliaria
Últimas publicaciones
Información práctica para agentes, agencias, compradores, vendedores e inversores del mercado inmobiliario español.
Capital gain on selling a property in España
Fiscalidad del vendedor · Ganancia patrimonial El impuesto no se calcula simplemente restando el precio de compra al precio de venta. Para determinar la gananci…
Leer más
How to calculate the return on a rental property
Inversión inmobiliaria · España Una buena inversión no empieza por la rentabilidad anunciada: empieza por entender todos los números y todos los riesgos. Compra…
Leer más
Scams and warning signs when buying a home in España
Seguridad inmobiliaria · España Una señal de alerta no demuestra una estafa, pero sí puede justificar detener el pago hasta verificar. Antes de entregar una res…
Leer más
Long-term or holiday rental: how to compare them
Inversión · Alquiler · Estrategia Larga temporada o alquiler turístico: compara primero la viabilidad y después la rentabilidad El alquiler turístico puede gene…
Leer más
Buying a property to invest in España
Inversión inmobiliaria · España Una buena inversión no empieza por la rentabilidad anunciada: empieza por entender todos los números y todos los riesgos. Compra…
Leer más
Buying a second home in España
Segunda residencia · España Una buena segunda vivienda debe funcionar también cuando no estás allí. Comprar una segunda residencia en España implica mucho más q…
Leer más
Tourist rental of residential properties in España
Inversión y alquiler · marco nacional Comprar para alquiler turístico no empieza con la rentabilidad. Empieza confirmando que el uso es viable. En España no exi…
Leer más
Where to buy a home in España: how to choose the right area
Elegir ubicación antes de elegir inmueble La zona adecuada no es la más famosa: es la que encaja con tu uso, presupuesto y forma de vida. España reúne mercados…
Leer más
Documentos necesarios para vender una vivienda en España
Checklist documental del vendedor Preparar los documentos antes de encontrar comprador puede evitar retrasos cuando llega el momento de firmar. Para vender una…
Leer más
Withholding of 3% when selling a property as a non-resident
Vendedor no residente · IRNR El 3% que se retiene en la venta no es necesariamente tu impuesto final. Cuando un contribuyente no residente sin establecimiento p…
Leer más