FAQ

Absolutely. Under Spanish law (LEY 57/68), developers are legally required 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.

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, land registry, and legal fees (typically around 1%). We recommend budgeting roughly 13% to 14% over the purchase price to comfortably cover all taxes and professional fees.

Yes, Spanish banks are very comfortable financing new builds for international buyers. Major institutions like CaixaBank regularly grant mortgages of up to 70% of the purchase price (or valuation, whichever is lower) to non-resident buyers, including EU citizens. The final valuation and mortgage activation take place just before the completion date at the notary.

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 upon signing the private purchase contract (PPC). The remaining 70% is only paid upon completion at the notary.

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, a private parking space and a storage room in the underground garage are also included. Many projects feature motorized shutters, climate control (pre-installation or full AC), and access to communal areas like swimming pools and landscaped gardens. Developers also offer comprehensive "turnkey" furniture packages for an additional cost. Essentially, you only need to furnish the rooms (or select a furniture package) to start enjoying your new Mediterranean home.

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.

The Licence of First Occupancy (Licencia de Primera Ocupación) is issued by the local town hall once construction is fully completed according to the approved plans. It confirms the property is legally habitable. It is required to connect main utilities (electricity and water) and to obtain a tourist rental licence. Your lawyer will ensure this document is in order before final sign-off.

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.

Yes, depending on the construction stage. If you buy off-plan (before or during early construction), most developers allow you to customize floor tiles, kitchen cabinets, bathroom finishes. Some developers even allow minor structural or floor plan modifications if requested early in the process.

Purchase contracts (PPC) include a target completion date along with an official grace period (typically 2 to 3 months). If construction is delayed beyond this period due to developer negligence, the contract outlines financial penalties or gives you the legal right to rescind the contract and claim your deposited funds back with interest, backed by your Bank Guarantee.

A Nota Simple is an official extract from the Spanish Land Registry. It verifies who legally owns the property and confirms whether there are any existing mortgages, tax debts, or legal encumbrances attached to it. Our independent lawyer always requests and reviews this document before any deposit is paid, ensuring you never purchase a property with hidden liabilities.

When purchasing a resale home, you pay Property Transfer Tax (ITP - Impuesto sobre Transmisiones Patrimoniales) instead of VAT. The rate depends on the region (e.g., 9% in the Alicante province / Costa Blanca, and 7% in Andalusia / Costa del Sol). Additionally, there are notary, land registry, and legal fees. Overall, we recommend budgeting roughly 11% to 12% above the purchase price to cover all taxes and administrative costs.

In Spain, debts are tied to the property, not the individual. Therefore, on the day of completion at the notary, the seller is legally required to present certificates showing a zero balance for community fees (Comunidad), local property taxes (IBI), waste collection fees, and utility bills. Your lawyer guarantees that title transfer only occurs once the property is proven to be completely debt-free.

Yes. Unlike new developments where prices are fixed by the developer, resale property prices almost always have room for negotiation. Depending on market conditions, the seller's motivation, and the property's condition, a well-structured offer can typically achieve a 3% to 8% discount on the listed price.

Yes, major Spanish banks (such as CaixaBank) actively offer mortgages to international buyers for resale properties. As a non-resident, you can typically borrow up to 60% to 70% of the purchase price or the official bank valuation (whichever is lower).

Resale transactions move much faster than new builds. Once your NIE number and Spanish bank account are ready, the process typically takes only 4 to 6 weeks from signing the preliminary deposit contract (Arras) to final completion and key handover at the notary.

This depends on local regulations and the property's licence status. Crucially, properties that already held a valid tourist licence before April 3, 2025, do not require approval from the homeowners' association (Comunidad) upon ownership transfer—the new owner can seamlessly take over the licence. For properties without a licence, town hall regulations and community consent apply. Our lawyer checks the exact legal rental status before any offer is submitted.

First, a small reservation fee (approx. €3,000 – €6,000) takes the property off the market. Following legal due diligence by your lawyer, you sign the private purchase contract (Arras) within 2 to 3 weeks and pay a 10% deposit. Under Spanish law, this deposit is heavily protected: if the seller pulls out of the deal after signing the Arras, they must legally refund double your deposit amount.

You do not need to deal with local utility companies directly. Following the notary sign-off, our legal team handles the transfer of water, electricity, gas, and local property tax (IBI) contracts into your name, and sets up direct debits from your Spanish bank account.

If requested, we can arrange an independent technical survey by a qualified architect. Additionally, your lawyer checks town hall and registry records to confirm that all existing structures, terraces, or extensions were legally built with proper permits, preventing any future legal or planning issues.