A Step-by-Step Guide to Buying a New-Build Property in Spain: From Reservation to Handover
Last updated: August 2026 Buying a property abroad is an exciting step but it also comes with plenty of questions. What happens after you've chosen your apartment? How does the reservation process work? When is the purchase agreement signed? How are payments structured? What needs to be arranged before the property is handed over? In this guide we'll take you through the 6 key steps of buying a new-build property in Spain - from reserving your apartment to receiving the keys to your new home. 1. Reservation Fee and Reservation Agreement Once you have selected your apartment the next step is to reserve it. You will pay a reservation fee set by the developer typically ranging from €6,000 to €12,000 depending on the purchase price of the property. Once the reservation fee has been paid the property is withdrawn from the market and reserved exclusively for you. 2. KYC Process - Verification of the Buyer's Identity and Source of Funds Following the reservation the KYC (Know Your Client) process begins. This is a standard verification procedure that confirms the buyer's identity and the source of their funds. It is a legal requirement designed to help prevent money laundering and protect all parties involved in the transaction. The KYC process is usually completed within 30 days. 3. Signing the Purchase Agreement Once the KYC process has been successfully completed, the purchase agreement is signed. Before signing we strongly recommend appointing an independent lawyer in Spain who will represent only your interests throughout the entire purchase process. Your lawyer's role is to thoroughly review all contractual documentation, verify that every agreed term has been correctly included in the agreement, and ensure that the entire transaction complies with Spanish law. They will also guide you through every stage of the purchase - from reviewing the documentation to successfully registering your ownership with the Spanish Land Registry. Is an Independent Lawyer One of the Best Investments When Buying Property in Spain? When purchasing property in Spain, having an independent lawyer with in-depth knowledge of Spanish legislation and the local buying process is basically a must. They represent only your interests, review all legal documentation, and ensure that the transfer of ownership is completed safely and in full compliance with Spanish law. Your lawyer will assist you with: Reviewing and commenting on the purchase agreement Obtaining the NIE number (Número de Identidad de Extranjero) which is a foreigner's identification number required to purchase property in Spain. The application process can take up to several weeks. Opening a Spanish bank account Communicating with the developer, public authorities and banks Accompanying you at the signing of the title deed or representing you under a power of attorney Handling the registration of your ownership with the Spanish Land Registry after completion of the title deed Arranging utility contracts (electricity and water supply) Legal fees for purchasing a new-build property in Spain typically represent 1% of the property's purchase price. 4. Making the First Payment According to the Payment Schedule After signing the purchase agreement you will make the first payment according to the agreed payment schedule. When purchasing a new-build property the purchase price is generally paid in installments. The exact payment schedule varies depending on the developer and the project and it typically includes: Reservation fee First instalment after signing the purchase agreement Stage payments during construction Final payment upon completion and handover of the property Are Your Payments Protected During Construction? With most developers payments made during the construction phase are protected by either a bank guarantee or an insurance-backed guarantee. This means that if for serious reasons the developer is unable to complete the construction, the buyer is entitled to a refund of the payments already made subject to the terms of the guarantee provided. We always recommend verifying if such a guarantee is available as the terms and conditions may vary depending on the developer and the specific project. 5. Personalise Your Second Home If you purchase your apartment during the early stages of construction you will often have the opportunity to personalise the interior finishes such as: Flooring Wall and floor tiles Kitchen finishes and colour scheme Optional upgrades and premium features Additional Costs to Budget For When purchasing a new-build property in Spain it is important to look beyond the advertised purchase price. In addition to the purchase price there are several legal fees and purchase-related costs to consider. In most cases, these include: 10% VAT (IVA) 1% of the purchase price for the services of an independent lawyer Approximately 2% of the purchase price for notary fees, Land Registry and other administrative costs When planning your budget we recommend allowing approximately 13% in addition to the purchase price to cover these taxes, legal fees, and other purchase-related costs. Example If you are buying a 2-bedroom apartment for €300,000 the estimated costs would be: Purchase price: €300,000 VAT (10%): €30,000 Legal fees (1%): €3,000 Notary, Land Registry and administrative fees (approx. 2%): €6,000 The total estimated purchase cost including all taxes and fees would therefore be €339,000. This price involves the standard specification and fitted kitchen. Furniture is not included. 6. Property Handover and Signing the Title Deed Once construction has been completed, the purchase can proceed to completion. Before the title deed is signed the remaining balance of the purchase price must be paid. The title deed is then registered with the Spanish Land Registry formally recording your ownership of the property.