FAQ
Buying New-Build Property in Spain
- Is my money safe when buying a property that is still under construction?
Absolutely. Under Spanish law (LEY 57/68), developers are required by law to secure all stage payments via a Bank Guarantee or insurance policy. This ensures that if the project is not completed, your investment is fully protected and refundable with interest.
- How does the payment schedule work for new constructions?
Typically, it follows a structured timeline: a reservation fee (approx. €6,000 - €10,000), followed by 20–30% of the price within 30–60 days. The remaining 70% is only paid upon completion.
- What additional taxes and costs should I budget for?
For new-builds, you pay 10% VAT (IVA) instead of transfer tax. Additionally, there is a Stamp Duty (AJD) which varies by region (usually 1.2% – 1.5%), plus notary and land registry fees. We recommend budgeting roughly 13% over the purchase price to cover all costs.
- Do new-build properties come with a warranty?
Yes, all new homes in Spain are covered by the "LOE" (Ley de Ordenación de la Edificación). This provides a 1-year warranty on minor finishes, a 3-year warranty on mechanical installations, and a 10-year warranty on the building's structural integrity.
- Is it possible to get a mortgage for a new-build property?
Yes. Spanish banks are very comfortable financing new-builds. You can usually apply for a mortgage of up to 50% of the purchase price as a non-resident. The final valuation and mortgage activation happen just before the completion date.
- Do I need to be in Spain personally for every step of the process?
Not at all. Many of our clients manage the entire process remotely. By granting a Power of Attorney (POA) to a local lawyer, they can handle the NIE application, bank account opening, and the signing of the title deeds on your behalf.
- What is included in the purchase price? What should I expect at handover?
New-build properties in Spain offer exceptional value: the price almost always includes a fully fitted kitchen with appliances (oven, hob, extractor fan), modern bathrooms with high-quality sanitary ware, and fitted wardrobes in all bedrooms.
In most developments, the price also features a private parking space and a storage room in the underground garage. Many projects include motorized shutters, pre-installation (or full installation) of air conditioning, and access to communal areas like swimming pools and landscaped gardens. Essentially, you only need to provide the loose furniture (beds, sofas, dining sets) to start enjoying your new Mediterranean home.