Buying a New Build in Spain

1 · Why UK buyers are buying new in Spain in 2026

Post-Brexit headlines suggested British buyers would walk away from Spain. The opposite happened. UK buyers remain the largest single nationality buying Spanish property year after year, accounting for roughly 9% of all foreign purchases in 2025. New builds in particular are seeing record demand — the combination of A-rated energy efficiency, low maintenance for the first decade, modern open-plan layouts, and Spain's 10-year structural warranty (LOE) under Ley de Ordenación de la Edificación makes them a fundamentally different proposition to tired Costa Blanca resales.

Three structural drivers keep British and Irish demand strong on the Costa Blanca:

• Cost-of-living gap. A 3-bedroom new build villa in Orihuela Costa costs the same as a 1-bed leasehold flat in many UK regional cities. Running costs (utilities, council tax equivalent, food) typically run 30–40% lower than equivalent UK lifestyle.
• Direct flights and rail. Alicante airport has 15+ daily flights from major UK and Irish airports. The new Madrid–Alicante high-speed rail puts Madrid 2h away.
• Climate. 320+ days of sun per year on the Vega Baja. Mild winters (16–20°C average daytime in January). For retirees and remote workers, the lifestyle uplift is the actual product.

2 · Off-plan vs key-ready

Every new build on the Spanish coast falls into one of two categories. The choice has big implications for cost, risk and timing.

Off-plan (construction phase)

You reserve and pay for a property that does not exist yet. The developer typically asks for a €6,000–€10,000 reservation fee, then 30–40% as stage payments during 12–24 months of construction, then the balance at handover. The upside: you pick finishes, you lock in today's price (most off-plan contracts have no clause to revise upward), and the home is brand-new when you collect keys. The downside: you wait. All stage payments are protected by mandatory bank guarantee under Spanish law — make sure your lawyer verifies this before you transfer anything.

Key-ready

Construction is complete or 95% finished. You can normally move in 30–60 days after signing. Pricing is usually 3–7% higher than equivalent off-plan because the developer has carried the cost of construction. Best fit for buyers who want certainty, are coming from rented accommodation, or want to slot the property straight into a holiday rental programme.

3 · The real total cost — price + 13% taxes and fees

The single biggest source of buyer regret is misjudging total cost. On a new build (not a resale), here is the realistic budget on top of the listed price:

Resales attract a different tax (ITP, 8–10% depending on region) instead of IVA and AJD. If you are comparing a new build at €350k against a resale at €330k, the total cost is often within €1,000 of each other once tax is in. Always do the maths in total cost, not in headline price.

4 · Getting your NIE number from the UK

The NIE (Número de Identificación de Extranjero) is a Spanish tax identifier required for any property purchase. UK and Irish buyers have three routes:

1. Spanish consulate in London or Edinburgh. Free, but appointment waits run 2–6 weeks and slots vanish in minutes.
2. In person in Spain. Walk-in or appointment at a National Police station with Foreigner's Office. Bring passport, two passport photos, completed EX-15 form, proof of purpose (a reservation contract works), and €9.84 in tax (Modelo 790).
3. Power of Attorney to your lawyer. Most international buyers grant a limited POA to their Spanish abogado, who applies on their behalf. This is what we recommend in 90% of cases — it avoids consulate queues and you do not need to fly to Spain to get it.

5 · Spanish mortgages for non-residents

UK and Irish buyers can absolutely get a Spanish mortgage on a new build. The standard terms in 2026:

• LTV: 60–70% for non-residents (vs 80% for residents).
• Rates: 3.5–4.5% fixed over 20–25 years, or Euribor+1% on a variable.
• Income multiple: Banks typically allow total monthly debt (Spanish mortgage + any UK mortgage you still pay) up to 35% of net monthly income.
• Documentation: last 3 months payslips, last 12 months bank statements, 2 years of P60s, credit report from Experian or Equifax, proof of address.

We introduce buyers to two independent Spanish mortgage brokers (not tied to a single bank) so you can compare offers. There is no obligation, no fee, and you keep the relationship.

6 · The 8-step buying process

1. NIE — granted by POA, 2–4 weeks.
2. Spanish bank account — opened with passport + NIE, takes 1 visit or done remotely.
3. Appoint an independent lawyer — never the developer's lawyer. Always independent.
4. Reservation — €6,000–€10,000, property comes off market.
5. Due diligence — your lawyer reviews land registry, licences, developer solvency, bank guarantee on stage payments.
6. Private contract (Arras / Compraventa) — 10% deposit, binding.
7. Stage payments (off-plan only) — typically 20–40% paid over construction.
8. Completion at notary — sign the Escritura, pay balance + 10% IVA + 1.5% AJD, collect keys.

7 · Choosing an independent lawyer

This is the single most important decision you will make in the process. Your lawyer protects you from the developer, the estate agent, and your own optimism. Three non-negotiables:

• Independent — not the developer's, not the agent's, not "our trusted partner who gives us a kickback".
• English-speaking and registered with the Colegio de Abogados — verify their bar number in 30 seconds online.
• Fixed fee, not %. A flat €2,500–€4,000 fee plus IVA is normal. Avoid 1.2% open-ended.

We work with three independent firms in Alicante and Murcia and are happy to introduce you. You are under no obligation to use any of them — many UK buyers prefer their own UK-based Spanish-property lawyer, which is also fine.

8 · Snagging — the bit nobody talks about

Every new build, no matter how prestigious the developer, hands over with defects. Cracked tiles, paint runs, doors that do not close, alignment issues on cabinetry, missing socket covers. The Spanish snagging culture is significantly less rigorous than the British or German equivalent — if you do not push, things will not be fixed.

The right process: an independent snagging inspector walks the property the week before completion, produces a written report with photos, you do not sign the Escritura until the developer commits in writing to fix what is listed. We arrange this for every client. Typical cost €350–€600 — pays for itself many times over.

9 · Living in Spain after Brexit

Owning a property in Spain does not give you the right to live there full-time. As a UK citizen, you can stay 90 days in every rolling 180-day period in the Schengen area (which includes Spain). Many UK buyers structure their year around this: 90 days in Spain, 90 days back in UK, repeat.

For longer stays, three visa routes are popular with UK buyers:

• Non-Lucrative Visa (NLV) — for retirees and passive-income individuals. Requires proof of ~€2,400/month income (€28,800/year). Cannot work remotely under this visa.
• Digital Nomad Visa (DNV) — for remote workers and freelancers. Requires income of ~€2,646/month from non-Spanish clients, university degree or 3+ years experience. Allows remote work for foreign employers.
• Golden Visa — was available for €500k+ property purchases but ended in April 2025. No longer an option.

10 · Selling in the future — capital gains and Modelo 210

If you sell your Spanish property later as a UK resident, you pay 19% Spanish capital gains tax on the profit (sale price minus purchase price minus allowable costs). The buyer is legally required to withhold 3% of the sale price (Modelo 211) and pay it directly to the Spanish tax office, which is offset against your final bill.

While you own the property and rent it out, you file Modelo 210 quarterly to declare rental income (19% on net for EU residents, 24% on gross for UK residents post-Brexit). If you do not rent it out, you still owe a deemed-income tax of ~0.25% of cadastral value annually. Neither is large but neither is optional — always use a gestor.

11 · Six expensive mistakes to avoid

1. Using the developer's lawyer. No matter how nice they are. Always independent.
2. Paying any deposit before the property is unblocked. Land registry check first. Always.
3. Buying off-plan without verifying the bank guarantee. Spanish law 38/1999 mandates it. Without it, your stage payments are unsecured if the developer goes under.
4. Underbudgeting the 13% tax and fee uplift. Mortgage applications get rejected over this constantly.
5. Skipping snagging. Saves €500, costs €5,000 in retrofit.
6. Not opening a Spanish bank account before completion. Last-minute panic transfers from UK banks get held by anti-money-laundering checks and miss completion deadlines.

12 · FAQ