Buying Property from a Developer — Step by Step
Reservation, KYC, developer verification, the private purchase contract, mortgage, key handover — the complete path to buying new-build property in Spain, plus answers to the most common questions.
Buying property from a developer works differently from a resale transaction — you're buying something that is often still being built. The process below is a model based on a typical transaction in Spain, prepared in collaboration with the law firm LT Sociados (Law Tax Architecture). The order and scope of individual stages may vary slightly depending on the construction progress and the specific developer.
Reservation
The reservation agreement is usually a simple draft that the developer is reluctant to let you amend. It involves a payment of €6,000–15,000, which takes the apartment off the market. Important: if the payment is made without a signed agreement, it's worth verifying the developer's credibility and obtaining a bank certificate — without a document confirming the payment, recovering the money if you withdraw can be difficult.
KYC (Know Your Customer)
Developers are legally required to screen clients under anti-money-laundering regulations (Law 10/2010). In practice, this means filling out forms and attaching documentation on the source of funds — tax returns, bank account history.
Developer verification
Before signing the private purchase contract, it's worth learning about the developer group you're buying from. In Andalusia (Decree 218/2005), the developer is required to make detailed documentation available: registry details, building plans, a description of installations, the price with a payment schedule, information on bank guarantees for deposits paid, and legal title to the land. This documentation should be available for inspection on request.
Private purchase contract
A private purchase-sale contract with a complete set of attachments: a certificate for the bank guarantees on the escrow account, the building licence, and a Land Registry extract confirming ownership of the land. Since construction is often only just starting, a good contract accounts for scenarios involving delays or an unfinished project.
Setting up your tax status
You will typically need to obtain an NIE number (private individuals) or NIF (legal entities — with an additional companies-register extract and articles of association, sworn-translated) and open a Spanish bank account, needed for signing the deed and for standing orders covering utilities and taxes. The tax numbers themselves also need to be activated with the Spanish Tax Agency.
Mortgage (if applicable)
It's worth starting the creditworthiness assessment around 3 months before construction is completed — the bank will ask for recent tax returns, a defaulters-register extract, and account history. A bank's offer is usually valid for 4–6 weeks, and the loan is only disbursed when the notarial deed is signed. Banks in Spain typically finance up to 20 years (25 in exceptional cases), at a variable rate of Euribor + around 1.2%.
Property handover inspection
A few weeks before signing the deed, the developer arranges a courtesy visit — a chance to point out minor finishing defects, which the developer usually has around 30 days to fix. This is standard market practice, not a legal requirement, and it does not replace the town hall's formal certificate of occupancy.
Notarial deed and key handover
Once the developer obtains the certificate of occupancy, both parties meet at the notary's office. A date and place are set, and a final breakdown of payments (desglose de pagos) is prepared. At this stage it's worth checking that the property is not still encumbered by a mortgage the developer took out to finance the project.
Post-purchase stage
Connecting utilities, an optional tourist licence or renovation permit, and registering ownership at the Land Registry — after settling VAT, the stamp duty (AJD), and notarial and administrative fees.
Frequently asked questions
Can the private contract be assigned to someone else?
The Civil Code doesn't prohibit it, but developers are reluctant to allow it — reselling at a later stage of construction usually comes with a price increase. A well-justified assignment (unforeseen personal circumstances) can, however, be possible even shortly before completion, provided the new buyer passes the standard source-of-funds verification.
Can the price change after signing the contract?
In theory yes, though in practice this is rare — it would require a change in building or tax law that forced the contractor to change the project or materials.
What happens if there's a significant delay in construction?
This is governed by the private contract, in which the developer usually reserves a margin of several months for administrative delays. Legally, you can claim late-payment interest, and in extreme cases, withdraw from the contract.
Can the client make changes to the project before completion?
In most cases the developer will not agree to changes in the construction work, even minor ones — the building licence applies to a specific, approved project. Some developers, however, offer a choice of finishing packages (e.g. kitchen or bathroom options).
Can someone sign the notarial deed on my behalf?
Yes, with a notarial power of attorney — ideally drawn up directly in Spain. A power of attorney prepared in your home country must carry an apostille and a sworn translation.
What is Aforix?
It's a relatively new platform for declaring foreign investments above €500,000 (Royal Decree 571/2023), which in practice is handled by the client's legal representatives.
Why does the floor-area figure seem confusing?
This is only an apparent problem, arising from the distinction between two figures: usable floor area (superficie útil) — all the space inside the walls that you can physically move around in — and built floor area (superficie construida) — the usable area plus what is taken up by walls, columns, and other structural elements. It’s the built floor area that appears in the Land Registry and is used to calculate the property tax (IBI) and the share in the owners’ community.
Prepared based on materials from the law firm LT Sociados (Law Tax Architecture, Łukasz Tkaczyk & Asociados, Conil de la Frontera). Every transaction is different — before signing any contract, we recommend individual legal advice.
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