Developer properties in Spain – everything you need to know

The Spanish property market is developing rapidly, attracting both investors and those looking for their own home. New developments are regularly put up for sale, and attractive locations, such as those with sea views, quickly find buyers. Buying property on the primary market offers many advantages, such as spreading payments over several stages and the possibility of making design changes. However, in order to safely navigate the entire process, it is worth knowing the specifics of the Spanish market, the differences compared to the Polish market, and the additional costs that you may encounter.

Basic information about the primary market in Spain

The property market in Spain is developing dynamically, with new investments appearing regularly. Although prices are rising and the offer is wide, flats in attractive locations – with sea views and numerous amenities – quickly find buyers. Often, before developers obtain all the necessary permits, 30-40% of flats are already reserved. However, a reservation agreement at such an early stage carries a risk, as the investment may not come to fruition. Only a development agreement provides certainty.

Why is this happening? Developers cannot obtain a loan for the project until they are sure that there is sufficient interest in the offer. Therefore, they prepare visualisations, mock-ups and other promotional materials to start sales. Once they reach a threshold of 30-40% interest, they approach the bank for financing. After obtaining a positive decision and a building permit, they inform customers about the possibility of signing development agreements, which is a key moment in the investment process.

Why are development properties in Spain attracting Polish investors?

The property market in Spain offers something that is completely new to many Polish investors – flats from developers that are practically “turnkey” finished. This is a stark contrast to the development standard that Poles are accustomed to. Instead of “bare walls” and concrete screeds, in Spain we receive a property that is ready to move into almost immediately after receiving the keys.

What are the advantages of investing in primary market property in Spain?

Differences between the primary market in Spain and Poland

Buying property on the primary market in Spain differs in several key aspects from the process familiar in Poland. Here are the most important differences:

1. Language

In Spain, all documents related to the purchase of real estate must be signed in Spanish. It is not possible to sign documents in another language, which means that if you are not fluent in Spanish, you will need to use the services of a sworn translator or solicitor to ensure that all documents are correctly understood.

2. The role of a notary

In Poland, every property development agreement must be signed before a notary, which is standard procedure in the property purchase process. In Spain, however, the notary is only involved in the final stage of the process, certifying the deed of transfer of ownership, which formally closes the transaction.

3. The importance of a solicitor

In Spain, hiring a solicitor specialising in real estate is almost essential to ensure a smooth and hassle-free transaction. The solicitor oversees the compliance of all procedures and documents and ensures that the buyer’s interests are fully protected. As part of our services, our clients receive legal support from the renowned law firm Sun Lawyers, which has almost 40 years of experience in the Spanish market.

4. Developer standard

In Poland, when you purchase a property from a developer, you usually receive it in a shell or developer’s standard, which means that you have to finish it yourself. In Spain, on the other hand, properties are delivered in a “turnkey” standard, which means that they are already finished and ready to move into.

What exactly does the developer standard, turnkey finish in Spanish development properties include?

Window and door joinery

The climate in Spain necessitates specific solutions for window and door joinery:

• PVC or aluminium windows with double glazing for better thermal insulation
• Aluminium blinds or external roller blinds – essential in the Spanish climate, where protection from the sun is crucial
• Complete interior doors – fully installed and ready for use
• External security doors – ensuring an adequate level of security

Kitchen equipment

The kitchen is where the difference between the developer’s standard in Poland and Spain is particularly noticeable:

• Complete kitchen furniture including worktop
• Sink and tap installed
• Basic household appliances: usually a hob, oven and extractor hood
• Developers often offer full household appliances as part of a promotion, including a dishwasher, washing machine and microwave oven

Standard bathroom finish

Bathrooms in Spanish development properties are another element that pleasantly surprises Polish investors:

• Wall and floor tiles – often with a high standard of finish
• Complete white fittings – washbasin, toilet, bidet (depending on the design)
• Shower cubicle or bath – fully installed and ready for use
• Bathroom taps – usually of good quality
• Vanity unit – providing storage space
• In some designs, underfloor heating in bathrooms

What is the standard of development in Spain? Comparison with Poland

The main difference between the primary market in Spain and Poland lies precisely in the standard of finish. The table below clearly shows these differences:

Fees associated with purchasing property on the primary market in Spain

Buying property in Spain involves additional costs that need to be factored into your budget. It is worth remembering that the prices quoted by the developer are net prices, to which approximately 13% of the property value must be added in the form of various taxes and fees.

• Net property value: The basic price of the property set by the developer.
• IVA – Spanish VAT: This is 10% of the property value and is a standard charge when purchasing a property.
• Local tax: Depending on the region, it ranges from 1.2% to 2% of the property value (1.5% in Valencia, 2% in Murcia, 1.2% in Andalusia).
• Notary fees and registration fees: Approximately 1.5% of the property value is additional tax costs, which include notary fees and property registration fees.

The process of purchasing property from the primary market

Buying property in Spain is a process consisting of several stages. Below are the most important steps you need to take to become a property owner in Spain. We also encourage you to read our guide, where you will find more details.

What does the developer’s guarantee cover in Spain?

One of the important aspects of purchasing a property from a developer is the issue of guarantees. Spanish property development law provides buyers with a number of safeguards that give them a sense of security about their investment. The standard developer’s guarantee in Spain covers:

• 1 year for interior finishing – minor defects such as problems with paint, tiles or fittings
• 3 years for installations – plumbing, electrical, air conditioning
• 10 years for the building structure – foundations, load-bearing walls, ceilings

Additionally, Spanish property development legislation introduces mandatory financial safeguards:

• Bank guarantees for payments made prior to completion of construction
• Protection of advance payments in special escrow accounts
• Guarantee documents “aval bancario” securing the deposited funds

Can changes be made to the design during construction?

One of the biggest advantages of purchasing a property at an early stage of construction is the possibility of personalisation. Developers in Spain often allow for layout changes, which allows you to tailor the flat to your individual needs.

The scope of possible modifications usually includes:

• Choice of wall colours – although white remains the most popular colour due to the atmosphere it creates
• Personalisation of tiles in bathrooms and kitchens
• Choice of flooring type – tiles or panels
• Choosing the colour scheme for kitchen cabinet fronts
• Minor changes to the layout of rooms – provided that they do not interfere with the load-bearing structure of the building
• In some cases, the possibility of creating an additional bathroom or wardrobe

What amenities do new housing developments offer?

New development projects in Spain are not just apartments, but often entire leisure complexes with extensive infrastructure. Common areas are an important element of a property’s value and are often the main argument for choosing a particular investment.

Standard amenities in new developments include:

• Swimming pools – often for both adults and children
• Landscaped green areas – gardens, parks, walking paths
• Children’s playgrounds
• Gyms and sports areas – tennis courts, padel courts
• Spa areas – saunas, jacuzzis
• Barbecue and leisure areas
• Underground garages and storage rooms

What does the technical acceptance of a flat from a developer look like?

The technical inspection of the property is a crucial moment in the purchase process. This is the time when you should thoroughly check the condition of the flat and report any defects that should be fixed by the developer before the final handover of the keys.

What documents should I receive from the developer along with the property?

Upon handover of the property, the developer should provide the buyer with a complete set of technical and administrative documents. Possession of this documentation is not only a legal requirement, but also a practical necessity in the event of subsequent renovations or sale.

The standard package of documents includes:

• Energy certificate (Certificado de Eficiencia Energética) – specifying the energy efficiency of a building
• Building logbook (Libro del Edificio) – containing detailed information about the structure, installations and maintenance guidelines
• Technical plans – architectural, electrical, plumbing
• Instructions for operating devices and systems installed in the property
• Warranty certificates for individual finishing and furnishing elements
• Documents confirming that a legal occupancy permit (Licencia de Primera Ocupación) has been obtained
• Certificate of compliance with the design (Certificado Final de Obra)

Are new properties energy efficient?

In response to growing energy efficiency requirements, new development projects in Spain are increasingly incorporating environmentally friendly and energy-efficient solutions. This is not only a result of legal regulations, but also a response to customer expectations, especially in Northern Europe, where environmental awareness is high.

Standard energy-saving solutions in new developments include:

• Advanced thermal insulation – particularly important in the Spanish climate, where keeping cool in summer is a priority
• Double-glazed windows with low heat transfer coefficients
• Energy-efficient air conditioning systems – often with heat pump functionality
• Solar panels for domestic water heating – mandatory in many new buildings
• Efficient ventilation systems with heat recovery
• LED lighting in common areas
• Intelligent energy management systems in high-end developments

What does the process of developing the land around the new investment look like?

Attractive landscaping is one of the key elements contributing to the value of a new development. Developers in Spain attach great importance to the quality of common areas, especially in projects aimed at foreign investors.

As standard, the process of developing external areas includes:

• Construction of swimming pools – often for both adults and children
• Creation of relaxation areas – sun loungers, canopies, gazebos
• Establishment of green areas – gardens, green spaces, plantings
• Construction of sports infrastructure – sports fields, tennis courts
• Installation of outdoor lighting
• Creation of parking and communication areas

Summary – why should you consider purchasing a property from a developer in Spain?

Purchasing property from a developer in Spain is a solution that offers a number of significant benefits for investors, especially those from abroad. High standards of finish, the convenience of a turnkey solution and legal safeguards make this an option worth considering.