Buying new-build in Spain.
What a foreign buyer needs to know before reserving a new or off-plan home.
Last reviewed: October 2026
General information, not legal or tax advice. Rules and rates change and depend on your situation: confirm everything with an independent lawyer or tax adviser.
Before you buy.
- NIE
- The foreigner identification number (Número de Identidad de Extranjero). You need it to sign the purchase deed and to pay Spanish taxes.
- Spanish bank account
- Usually needed to make payments and to set up utilities and local taxes by direct debit.
- Independent lawyer
- Hire your own lawyer, independent from the seller. They check the land registry, the building licence, the contract and the deposit guarantees before you pay.
Off-plan deposits and guarantees.
- What the law requires
- Under Spanish law (Ley 38/1999 on building, LOE, additional provision one, as amended by Ley 20/2015), anyone promoting homes who takes money on account before or during construction must guarantee its refund, plus legal interest, if construction does not start or finish within the agreed time or the home does not obtain its occupancy licence.
- How it is guaranteed
- By a surety insurance policy (seguro de caución) or a joint bank guarantee (aval solidario), from the moment the building licence is granted. Payments go into a special account at a credit institution, kept apart from the promoter’s other funds.
- Cooperatives too
- The same provision covers homes built by a housing cooperative or an owners’ community.
- What to ask for
- An individual guarantee certificate for your payments and the details of the special account. Your lawyer should check both before each payment.
Taxes on a new home.
- VAT (IVA)
- The first sale of a new home pays VAT instead of transfer tax. The rate is generally 10%; a reduced 4% applies only to certain officially protected housing.
- Stamp duty (AJD)
- Paid on the deed and set by each region. In Andalusia the general rate is 1.2%, with reduced rates for some buyers.
- Resale homes
- A second-hand home pays transfer tax (ITP) instead of VAT and stamp duty.
- Other costs
- Notary, land registry and, if you take a mortgage, the related costs. After purchase, the annual local property tax (IBI) applies.
- Check current rates
- Rates above are as we understand them at the review date. Confirm current rates with your adviser before you sign.
Cooperative or standard development.
- Standard development
- A developer owns the land, builds and sells. You sign a purchase contract with the developer for a specific home.
- Housing cooperative
- Buyers join a cooperative society as members. The cooperative buys the land and commissions the building, usually run by a management company (gestora). Members decide in assembly.
- What changes for you
- In a cooperative the final cost follows the real cost of the project, so changes in cost or timing are shared by the members. Read the statutes and the management contract with your lawyer.
Energy performance certificate.
- Expected rating
- An off-plan home has an expected rating from the project. It is not final.
- Certified rating
- The final energy performance certificate is issued once the building is finished and is handed to the buyer.
From reservation to keys.
- 1. Reservation
- A reservation agreement takes the home off the market while your lawyer runs the checks.
- 2. Purchase contract
- The private contract sets the payment schedule. Payments on account must be guaranteed as explained above.
- 3. Construction
- Timelines vary by project. Ask for the licence status and the planned schedule in writing.
- 4. Completion
- The building gets its completion certificate and the municipal clearance to be occupied.
- 5. Deed and keys
- You sign the public deed before a notary, pay the balance and taxes, and receive the keys. The deed is then registered at the land registry.
Questions about a home?.
Ask us for the price and conditions of any development.