Completing on a New Build in Spain: From Snagging to Keys

You exchanged contracts, made your stage payments, and waited — sometimes for two or three years. Now the developer is telling you the property is ready. This is the part where buyers make expensive mistakes.

Completion on a new build in Spain is not the same as picking up keys from an estate agent. It involves legal sign-off at a notary, tax payments, a formal deed transfer, and — critically — an inspection process that you should never skip. This guide walks you through every stage from the moment the developer says "it's ready" to the moment you're sitting in your own Spanish property.

Why New Builds Are Different to Resale

When you buy a resale property in Spain, you can inspect it, get a survey, and see exactly what you're getting. When you buy off-plan, you commit to something that doesn't yet exist — on the basis of architectural plans, a specification document (the memoria de calidades), and whatever the show apartment showed you.

The purchase process reflects this. Typical off-plan structures involve:

• Reservation deposit: 10–30% paid when you sign the purchase contract, securing your unit
• Stage payments during construction: further tranches — often bringing the total paid to 30–60% — triggered at construction milestones
• Final balance on completion: the remaining 40–70%, paid at the notary on the day you sign the escritura and receive the keys

This staged structure means that by the time you're sitting in the notary's office, you may have already paid more than half the purchase price. That gives you less leverage than you might think — unless you know exactly what to check and when.

The Bank Guarantee (Aval Bancario / Seguro de Caución): Your Deposit Protection

Before we get to completion, a word on what protects your money during construction. Under Spanish law, developers are legally required to guarantee all off-plan payments made by buyers. This guarantee takes one of two forms:

An aval bancario (bank guarantee) — issued by a bank, it guarantees that if the developer fails to complete and you request your money back, the bank will pay.

A seguro de caución (insurance bond) — similar protection provided by an authorised insurance company rather than a bank.

The legal framework stems from the original Ley 57/1968 and was significantly strengthened by subsequent legislation (Disposición Adicional Primera of Ley 38/1999 as amended). The key practical points:

• You must receive a copy of your individual guarantee certificate for every payment you make
• If the developer becomes insolvent before completion, you can make a claim directly against the guarantor — you do not need to wait for insolvency proceedings to conclude
• If you have no valid guarantee, you become an unsecured creditor — a much weaker position

Never make any payment without first receiving a valid guarantee certificate. Your solicitor should check that it covers the full amount, names you as beneficiary, and is issued by an institution authorised to operate in Spain.

*Note: the legislation governing deposit protection has evolved since 1968. The specific protections available depend on your contract and the date of purchase. Always seek independent legal advice from a qualified Spanish abogado.*

Snagging: The Inspection You Cannot Skip

The developer calls. The building is complete. They want you at the notary next week. Stop. Before you sign a single document, you need to do a snagging inspection.

What is snagging? Snagging (known in Spanish as inspección de entrega or sometimes referred to informally as lista de defectos) is a thorough inspection of your property before you accept it — identifying every defect, every item that doesn't match your spec, and every unfinished or poorly finished element.

Always Hire a Professional Snagging Inspector

This is the single most valuable thing you can do at this stage. A professional snagging inspector (perito independiente or inspector de obra) is independent of the developer and has no interest in glossing over problems. Expect to pay between €300 and €500 depending on the size of the property and their location. It is money that can save you tens of thousands.

A professional will check things that a layperson will miss: subfloor levels with a spirit level, waterproofing integrity, whether all electrical circuits work under load, pressure in the plumbing system, whether the air conditioning units are correctly sized and installed, and dozens of other technical items.

Common New Build Defects in Spain

Based on snagging inspections across thousands of Spanish new builds, these are the most frequently found defects:

• Cracked or chipped tiles — particularly on floors and in bathrooms, often from construction traffic
• Poor grouting — gaps, inconsistent colour, grout not sealed in wet areas
• Uneven floors — small undulations are common; significant ones indicate a problem
• Doors and windows that don't close or seal properly
• Faulty appliances — hobs, ovens, extractor fans, dishwashers installed but not tested
• Items missing from the specification — fittings, finishes, or features listed in the memoria de calidades but absent from the finished property
• Poor paintwork — runs, thin coverage, missed areas
• Incomplete external works — terrace surfaces, garden areas, communal pools and landscaping often lag behind the units

Document every single item with dated photographs. Your snagging inspector will produce a written report — this is your evidence.

What Happens After Snagging

You present the snagging report to the developer. Under Spanish law, specifically the Ley de Ordenación de la Edificación (LOE) 1999, the developer has a legal obligation to rectify construction defects. Agree a timeline for remediation in writing.

Do not complete on the property if it has major structural or habitability defects that have not been resolved. For cosmetic defects, it is acceptable (and sometimes practical) to complete while formally noting the outstanding items in the escritura itself — this creates a legal record. But for anything serious, hold your ground.

The Three-Stage Spanish New Build Warranty

Once you do complete, Spanish law provides a statutory warranty structure under the LOE:

• 1 year — for minor finishing defects (vicios ocultos leves): cosmetic damage, minor fixtures, poor decoration
• 3 years — for habitability defects (vicios de habitabilidad): waterproofing failures, defective plumbing, faulty installations that affect day-to-day use
• 10 years — for structural defects (vicios estructurales): foundations, load-bearing walls, structure of the building

Report any defect in writing to the developer (and their insurer if relevant) as soon as you discover it. Warranties run from the date of the certificate of completion (certificado de fin de obra), not from when you personally move in.

The Licencia de Primera Ocupación: Non-Negotiable

The Licencia de Primera Ocupación (LPO) — sometimes called the Cédula de Habitabilidad in some autonomous communities — is the local authority's formal confirmation that the building has been constructed in accordance with its planning permission, meets all habitability requirements, and is legally fit for occupation.

It sounds administrative. It is actually fundamental.

Why the LPO Matters

Without a valid LPO:

• You cannot legally occupy the property — doing so puts you in breach of planning regulations
• You cannot connect utilities — the electricity and water companies will not provide connections without it
• You cannot insure the property properly for residential occupation
• Your mortgage lender may refuse to release funds — most Spanish banks require the LPO before completion

The LPO is the developer's responsibility to obtain from the local ayuntamiento (town hall). It comes after the building is fully complete, inspected, and certified by the relevant technical professionals.

The Growing Problem: Completing Without an LPO

There is an increasing pattern of developers pressuring buyers to complete before the LPO is in place — sometimes with assurances that "it's just a formality" or "it'll be issued within weeks." Do not accept this.

Completing without an LPO leaves you with a property you legally cannot occupy, cannot connect, and cannot fully insure. In some regions, delays between practical completion and LPO issuance have stretched to months or even longer, particularly where local authorities have backlogs or where the developer has minor outstanding compliance issues.

Insist on seeing the LPO before signing the escritura. If the developer won't provide it, completion should not proceed. This is a straightforward position — your solicitor should hold to it firmly.

Completion Day: Signing the Escritura

Once snagging is resolved (or formally noted), the LPO is in hand, and all parties are ready, you have a date at the notary. Here is what happens.

The Day Before: Final Walkthrough

Do one final walkthrough of the property. Check that:

• Every snagged item has been addressed (or is formally noted for later resolution)
• All appliances work — turn them on, test them
• Every item in the memoria de calidades is present
• All keys, fobs, and access cards are ready for handover
• The water, gas, and electricity supplies are ready for connection

At the Notary

The signing of the escritura de compraventa is the moment the property legally transfers to you. At this appointment:

You pay the final balance. The remaining purchase price — typically 40–70% of the total — is transferred to the developer, usually via a banker's draft (cheque bancario) or same-day bank transfer.

You pay the taxes. New build properties in Spain are subject to two taxes at completion:

• IVA (VAT) at 10% of the purchase price — this replaces the resale transfer tax (ITP) and is paid to the developer, who remits it to the tax authorities
• AJD (Actos Jurídicos Documentados) — stamp duty on the notarised deed, typically 1.5% of the purchase price (the rate varies slightly by autonomous community)

Your solicitor and/or gestor will handle the tax paperwork, but you need to have budgeted for these amounts. Unlike resale, where you pay ITP directly, on new builds IVA is included in the final invoice from the developer.

The escritura is signed and witnessed. The notary verifies all parties' identities, reads the deed, and both parties sign. This is the moment of legal transfer.

Keys are handed over at the notary, typically after signing.

After Completion: The First Month

Getting the keys is not the end — it is the beginning of a short but important administrative process.

Register in the Land Registry

Your solicitor will take the executed escritura and register the ownership change in the Registro de la Propiedad (Land Registry). This is essential — until registered, your ownership is not fully protected against third-party claims. Registration typically takes a few weeks after completion. Your solicitor will provide a nota simple confirming registration once done.

Connect Utilities

Take your LPO (or a certified copy from the developer) and contact the relevant utility companies to set up:

• Electricity — apply for a new supply contract with the local distributor (Iberdrola, Endesa, or the local equivalent)
• Water — contact the local water company or ayuntamiento
• Gas — if the property has gas, arrange connection and boiler commissioning

All utility connections for a new property require the LPO. Without it, you will be told to come back when you have it.

Community Handover

If your property is within a development (urbanización) with shared spaces — pool, gardens, entrance — it will be managed by a comunidad de propietarios (owners' community) under the Horizontal Property Act. At or shortly after completion:

• Request the community statutes (estatutos de la comunidad) and any house rules
• Get the contact details for the community president and the administrator (administrador de fincas)
• Obtain the community bank account details for fee payments

Set Up Direct Debits

Set up Spanish direct debits for:

• IBI (Impuesto de Bienes Inmuebles) — Spain's council tax, billed annually by the local ayuntamiento
• Community fees (cuota de comunidad) — monthly or quarterly, covers maintenance of shared areas
• Utility bills — electricity, water, and gas on the new contracts you've set up

You will need a Spanish bank account for all of these. If you don't already have one, our guide to opening a Spanish bank account as a non-resident covers the process.

Common Problems and How to Avoid Them

Developer Delays

Build programmes almost always run late. What matters is what your contract says. Spanish courts have historically allowed developers a tolerance period — typically up to approximately 12 months beyond the contracted completion date — before a buyer can legally withdraw with their full deposit plus interest. Beyond that, and if the delay constitutes a breach of contract, you have grounds for exit.

The practical lesson: get a completion date in your contract, resist broad force majeure clauses, and if a delay becomes significant, take legal advice before taking any action. Do not just accept indefinite postponement.

Developer Insolvency

If your developer becomes insolvent before completing, your bank guarantee is your lifeline. Contact the guarantor (the bank or insurance company) directly and file a claim. You will almost certainly need legal representation — instruct a Spanish abogado who specialises in off-plan property and developer insolvency. Do not delay.

Missing Specification Items

Your memoria de calidades (quality specification document) is a contractual document. If the finished property contains materials, fittings, or finishes that fall below what was specified — or if items are simply absent — you have a claim against the developer.

This is exactly why you do a snagging inspection with your spec document in hand, comparing the finished property item by item against what was promised.

Frequently Asked Questions

What is a snagging list in Spain? A snagging list (often called an inspección de entrega or lista de defectos) is a written record of all defects and unresolved items identified during a formal inspection of your new build property before you sign the final purchase deed. It is your evidence record, and the developer is legally obliged to rectify genuine construction defects.

What is the LPO (Licencia de Primera Ocupación)? The Licencia de Primera Ocupación is the formal authorisation from the local ayuntamiento confirming that a newly constructed building complies with its planning licence and is legally habitable. Without it, you cannot occupy the property, connect utilities, or fully insure it. It must be in place before you complete.

What warranties do new build properties have in Spain? Under the Ley de Ordenación de la Edificación, Spanish new builds carry three tiers of statutory warranty: one year for minor finishing defects, three years for habitability defects (waterproofing, installations), and ten years for structural defects. These run from the certificado de fin de obra.

What happens if my developer goes bust before completion? If your deposits are covered by a valid aval bancario or seguro de caución, you can claim directly against the guarantor for a full refund of all deposits paid plus interest. If no valid guarantee is in place, you become an unsecured creditor in the insolvency proceedings — a more difficult and uncertain position. This is why the guarantee documentation is non-negotiable from day one.

Can I refuse to complete if snagging issues haven't been fixed? Yes. You are not obliged to sign the escritura until you are satisfied the property meets contractual standards. For major defects — particularly structural or habitability issues — you should refuse to complete until they are resolved. For minor cosmetic items, it is possible to complete while formally noting outstanding items in the deed itself, but only do this with legal advice and only for genuinely minor matters.

What taxes do I pay at completion on a new build in Spain? New builds are subject to IVA at 10% of the purchase price, plus AJD (stamp duty) at approximately 1.5% (the exact rate varies by autonomous community). These are separate from the legal fees, notary fees, and land registry fees that also apply at completion.

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*This guide is provided for general information purposes only. Spanish property law and local regulations change, and the application of these rules depends on your specific contract, the autonomous community in which the property is located, and the date of your purchase. Always instruct a qualified, independent Spanish abogado before proceeding with any stage of a new build purchase.*

Buying off-plan? Read our full guide to buying off-plan in Spain before you sign anything. For the complete tax and fee picture, see our guide to buying costs in Spain. And if you're choosing between a new build and resale, our new build vs resale comparison breaks down the trade-offs in detail.