Is a new-build deed in Spain compulsory?

What exactly is the new-build declaration and what is it for?

It is the public (notarial) deed that certifies a building has been constructed (or materially altered) on a plot, and enables its registration at the Land Registry. By doing so you create legal certainty and make future procedures—sale, mortgage, or utility connections—much smoother. It may also be required to set up a right of superficies where you build on land owned by a third party.

Is the new-build deed compulsory?

Requirements vary by profile:

• Self-builder for own use: strictly speaking, it is not always immediately compulsory; however, it is strongly recommended because you will need it for electricity/water and for any later disposal or financing.
• If you will sell, let or seek a mortgage: it is compulsory (the completed new-build must be deeded and registered). Lenders require it to formalise the loan and buyers to register title.
• Professional developers: must process it; if construction is financed with a mortgage the bank will demand it; in any case, it is needed to deliver homes to clients.

Types of new-build deed

• New-build under construction: granted with a works licence and a competent technician’s certificate that the build matches the approved project. Lenders may require it if there is construction finance.
• Completed new-build: certifies the works are finished and compliant; you need it for utilities and registration. It usually requires a final completion certificate, a first-occupation/habitability licence and an EPC, among others.
• “Ancient” (pre-existing) new-build: used to register buildings that were never registered (or registered incorrectly) once planning limitation periods have elapsed; relies on technical/municipal certification plus a notarial act or cadastral certificate.

Typical documents for a completed new-build

• Final completion certificate signed by a competent technician (and, where applicable, professionally visa-stamped).
• First-occupation/habitability licence (or the local equivalent) to evidence lawful use.
• Energy Performance Certificate (EPC), UTM coordinates and, where applicable, the building book.
• 10-year structural warranty (seguro decenal) (explained below).

10-year structural warranty: when is it compulsory?

Spanish building law (LOE) requires a 10-year structural warranty for dwellings transferred to third parties (covering structural defects for ten years). A self-builder for own use is exempt, but if the property is sold within 10 years, the warranty must be taken out (save for certain formal notarial waivers by the buyer where the law allows).

Costs: how much does it cost to declare a new-build?

It depends on the construction value, the autonomous community, and notarial/registry fees. The main tax is Stamp Duty (IAJD), typically 0.5% to 1.5% of the actual construction cost (some regions set different rates). Example: €200,000 build ⇒ 0.5% IAJD = €1,000; 1.5% IAJD = €3,000. Add notary and registry fees on top.

Note: regional differences are significant (e.g., some guides cite 0.75% in Madrid or 2% in the Valencian Community in certain cases), so check the current rate with your regional tax authority before signing.

Typical steps to formalise a new-build

1. Before building: works licence and a visa-stamped project.
2. During construction: if there is finance, a deed of new-build under construction.
3. On completion: final completion certificate and first-occupation/habitability licence.
4. Notary: grant the completed new-build deed.
5. Taxes: pay IAJD (Stamp Duty).
6. Land Registry: register the deed to close the legal loop and be able to sell/mortgage/connect utilities without friction.

Risks of not deeding a new-build

• Sale and inheritance: greater difficulty transferring or bequeathing, as the building is not yet “born” in the register.
• Finance: you cannot mortgage the home without the deed and its registration.
• Utilities: electricity/water connections are conditional on proving title and first-occupation.

What’s happening in the Alicante market?

• Strong foreign-buyer demand in Alicante: in 2024, 14.6% of purchases in Spain were by foreigners; Alicante consistently ranks among the top provinces, exceeding a 30% share in several quarters—an indicator of future turnover and the need to have new-build documentation perfectly in order.
• More new-build permits in the Valencian Community: in 2024 the visada (approved) floor area for new-build grew versus 2023, signalling an active pipeline.
• Price gap: new-build homes in Spain were, on average, 44% more expensive than resales in 2024. If you buy/develop new-build, proper legalisation (deed and registration) is essential to preserve value and financeability.

Quick questions (FAQ)

Can I deed without a habitability/first-occupation licence? It depends on the territory: ordinarily it is required; there are rulings that nuance requirements in specific cases. Your notary will confirm the valid route in your municipality/region.

I’m a self-builder—do I need the 10-year structural warranty? Not for own use; if you sell within 10 years, the warranty becomes relevant (or a lawful exception/waiver may be structured before a notary under the LOE).

Is Stamp Duty (IAJD) calculated on market value? No: it is based on the actual construction cost, with regional rates (approx. 0.5%–1.5% as a general reference).

Bottom line: if you plan to sell, let, mortgage—or simply want to safeguard value and avoid surprises—yes, it pays to grant and register the new-build deed as soon as possible. Our team can coordinate architect, notary, taxes and registration so the process is smooth and efficient.