Buying a new build in Jávea.
The advertised price is only the starting point. A buyer also needs to understand the taxes, contract sequence, protection for stage payments and the documents required before the home can be occupied.
Allow for IVA and AJD above the asking price.
A first sale of a newly built home by the promoter is normally subject to 10% IVA. The tax is paid to the seller as part of the purchase payments. The reduced 4% rate applies only to qualifying protected housing, not an ordinary private new-build purchase.
The notarised purchase is also subject to Actos Jurídicos Documentados. The general Valencian rate is 1.4% for transactions arising from 1 June 2026. Reduced treatment may be available in specific cases, including some purchases intended as the buyer’s habitual residence, but eligibility depends on the buyer and transaction. Have a Spanish lawyer confirm the applicable rate before signing. Legal fees, notary charges, Land Registry costs, mortgage costs where relevant and utility connections need their own allowance.
Obtain the NIE and appoint your own lawyer.
A foreign buyer needs a Número de Identidad de Extranjero for Spanish tax and property formalities. It can be requested in Spain through the police or an immigration office and from abroad through a Spanish consulate. The number identifies the buyer but does not grant residence rights.
The lawyer should act only for the buyer and check the land ownership, legal promoter, planning position, building licence, charges, company authority and the contract for the exact home. A developer’s lawyer, sales agent or listing company is not a substitute for independent advice.
Reserva, private contract and escritura serve different purposes.
A reservation agreement usually removes one identified home from sale for a short period in return for a payment. The document should state the property reference, price, reservation period, refund conditions and the evidence still to be supplied. Do not assume a reservation payment is refundable unless the wording says so.
The contrato privado de compraventa sets the binding purchase terms. It should identify the home, plans, specification, parking and storage, payment stages, completion date, delay provisions and the documents required at handover. The escritura pública is the notarial deed used to complete the purchase and register ownership. The exact sequence can vary, particularly for a cooperative or plot-and-build structure.
Land and construction may be separate transactions.
Some villa projects are sold as one completed new home by a promoter. Others involve buying a plot from one party and entering a separate construction contract with another. The taxes, guarantees, payment stages and legal checks can differ materially between those structures.
Do not apply the apartment example above automatically to a plot-specific villa. Ask the buyer’s Spanish lawyer to identify who owns and sells the land, who signs the building contract, whether the land element is subject to ITP or IVA and how each construction payment is protected. The signed structure for the exact project determines the treatment.
Ask for the individual guarantee before paying each stage.
Spanish law requires advance payments collected during construction to be protected by insurance or a bank guarantee and paid through a special account. The guarantee should cover the buyer’s advance payments, applicable taxes and legal interest. At the private contract stage the promoter must provide evidence of the guarantee for that buyer and home.
Keep every payment within the contractual schedule and use only the identified protected account. The contract should name the guarantor and account. If construction does not start or the home is not delivered within the agreed terms, the statutory protection provides a route to recover qualifying sums, subject to the contract and legal process.
Completion is more than collecting the keys.
Before completion, the lawyer should check the final works documentation, occupation title, energy certificate, insurance position, community documents and whether the finished home matches the contractual plans and specification. In the Valencian Community the document authorising occupation may be a municipal licence or the legally equivalent responsible declaration.
Inspect the exact home and record defects before or at handover. The final deed, keys, meter information, warranties and building documentation should relate to the property reference being purchased. A marketing completion date does not replace the date and delivery conditions written into the contract.