Note
Buying a new-build home in Spain
Quick answer
A new home bought from its developer carries VAT instead of the regional transfer tax, comes with statutory guarantees on the building and is usually paid in stages. Check the developer, the land and the licence before you pay, and choose your own notary and lawyer.
Applies toBuyers of a completed or nearly completed home sold by its developer. If the home is not yet built, read the off-plan page as well.
On this page: 7 sections
§ 1What makes a new build different
A new build is a home sold for the first time by the person who built or promoted it. In legal terms the developer is the seller, and the developer carries obligations that a private seller does not: statutory liability for defects and guarantees on the structure. That gives the buyer protections a resale does not have, and it also means the contract is drafted by the party with more experience.
§ 2The tax
The tax agency explains the dividing line. A first sale of a new home by the developer carries VAT, at 10% for housing, while a home sold by an earlier owner carries the regional transfer tax. Because the rules on stamp duty and rates for new homes also vary by region, the next section of the handbook, on costs and taxes, shows how to work out the full figure for your region.
§ 3The protections that come with it
Building law sets liability periods of one, three and ten years from acceptance of the works, and it requires a ten-year structural guarantee for housing. The structural guarantee is explained in the structural guarantee, and what to check on the day you receive the keys is in checking a new build at handover.
§ 4What to check before you pay
The registrars advise checking, before any deposit, the developer's registration, its ownership of the land and the building licence. Ask for the plans, the specification and the schedule of payments in writing. Notaries prefer payment by bank transfer to a named account, so pay only to the account in the contract and keep the proof. A developer who resists a lawyer's questions has given you information.
§ 5How the sale proceeds
The usual steps are a reservation, a purchase contract with staged payments, the completion of the building, the deed and the handover. When the building is not complete at the contract, the purchase is also off plan, and how off plan works covers the extra risks. Money paid before completion should be protected, as explained in the guarantee on deposits.
§ 6When it goes wrong
Developers can run into financial trouble, and a building can stall or a promised feature can disappear. The risk is greater the earlier you pay, which is why what happens if a developer fails is worth reading before you commit.
§ 7Alternatives
Some buyers join a group that builds for its members instead of buying from a developer, and a cooperative purchase explains how that differs.
Others prefer a home that already stands, and how a resale purchase works sets out its risks. For the comparison as a whole, see new and second-hand homes compared.
FAQRelated questions
Do I pay VAT or transfer tax on a new build?
On a first sale by the developer you pay VAT, at the rate in the tax agency's guidance, and not the regional transfer tax that applies to resale. Ask the developer to state in writing what is added to the price, and ask your adviser to confirm it.
Can I use my own lawyer with the developer's contract?
Yes, and you should. Developer contracts are drafted by the developer. Your lawyer can read the contract, the plans and the guarantees, and can tell you which clauses are normal and which move risk onto you.
Who chooses the notary?
You may choose the notary even when you buy from a developer, according to the notaries' council. Do not let the developer's choice stand by default, and ask when you can read the deed before the signing.
Sources
- Agencia Tributaria: Compro una vivienda: ¿tengo que pagar IVA o ITP? (official source, opens in a new window), Calificación IVA / ITPLast checked 17 October 2026
- Boletín Oficial del Estado: Ley 38/1999 de Ordenación de la Edificación (official source, opens in a new window), Articles 17 and 19; disposiciones adicionales primera y segundaLast checked 17 October 2026
- Consejo General del Notariado: Houses and real estate properties (official source, opens in a new window), Steps, documents and the notary's roleLast checked 17 October 2026
- Colegio de Registradores de España: Cómo comprar una vivienda en España (edición revisada, February 2020) (official source, opens in a new window), The five steps, nota simple, taxes and costsLast checked 17 October 2026
Tax note. Rates depend on the region, the type of property and the buyer, and they change. Figures here are dated and sourced; examples are illustrative and show their assumptions. Confirm yours with the regional tax agency or a tax adviser.