15 02 2024

Deed of Declaration of New Construction


Whether you are buying a property from scratch that has never been lived in, or you are getting all the paperwork for a major renovation, the term “new build” can be confusing. Both of these situations can be considered new construction. Before making any decisions, it is important to familiarise yourself with the concept.

Each type of new construction is designed to offer better services, efficiency, luxury and innovation. In order to legalise this new construction and enjoy it once it is completed, it is necessary to carry out a series of procedures. And one of the most important of these is the creation of new works.

At Prime Invest, we will tell you all the details of this document, including the requirements, the different procedures and the costs involved, which will be very useful when you go to formalise your new property. Let's get started!


First of all, what is new construction?

New construction is a building that is registered for the first time in the Property Registry. It can be a new building on land where no building existed before or an extension that exceeds 100 square metres to an existing building.

Colloquially, the term “new construction” is understood to mean a new house where no one has lived before. From a legal point of view, however, it refers to the legal act of declaring the existence of a new property by means of a public deed.

The authorisation to carry out the construction of the new building is obtained through the formalisation of the surface right by means of a public deed. This procedure grants the necessary legal capacity to carry out the construction in question.

What is a new building declaration?

A new building deed is the administrative procedure that details the changes that have been made to a plot of land, whether it be the construction of a new building or the extension of an existing one.

This document, signed in front of a notary, not only certifies the existence of the building, but also formalises the registration of the property in the land registry, thus simplifying procedures. Through all these bureaucratic processes, we ensure the ownership of the house and the characteristics or rights of the property.

In short, the deed of a new construction is essential for the purchase of a property, as it marks its legal existence, ensures that it has all the administrative permits in order and facilitates its registration in the Property Registry.

Is the declaration of new construction obligatory?

The declaration of new construction is the responsibility of the owner of the construction. This process is mandatory for builders or developers who own the house. In situations where the owner is an individual who has built on land he owns to give the building personal use, this deed is not mandatory. However, it is necessary to contract for services such as electricity or water, so for practical purposes it must be done anyway.

In addition, for legal and practical reasons, if the work is owned by an individual, the deed is required if a mortgage loan is applied for, or if the built property is sold or rented.


New construction declaration types

There are different types of new construction declaration, depending on the stage of the work:

Deed of declaration of new construction under construction

It is possible to execute the deed of new construction before the construction is completed. This procedure is often required by financial institutions in order to evaluate financing. For this procedure, it is necessary to have an act of conformity, usually the municipal licence, with all the details that allow the identification of the property, and a certificate from a technician certifying the conformity of the work project.

Once the work has been completed, it must be documented with a certificate of completion, which replaces the deed of declaration of new construction, but fulfils the same requirements.

Deed of declaration of new construction completed

In this case, the declaration of new construction is obtained once the construction of the work is fully completed and all previous legal requirements have been met. At this point, the following documents must be presented:

  • Licence of administrative authorisation
  • Certificate issued by a professional guaranteeing the completion of the construction or new building.
  • Certificate of use.
  • Ten-year building insurance.
  • First occupancy permit or, failing that, prior notification or declaration of responsibility, if local regulations allow.
  • Energy efficiency certificate.

In addition, the Mortgage Law requires the following for the formalisation of the deed:

  • Inclusion of the geographical coordinates of the property.
  • Deposit of the deed in the Property Registry.


What are the costs of the deed of completion?

As with any other document, the notary is responsible for verifying the legality of all the operations carried out. The costs associated with the formalisation of the declaration of work before a notary vary according to the total cost of the construction and include three elements:

  • Documented Legal Acts Tax: This is the tax levied on the declaration of new construction. Depending on the Autonomous Community in which the property is located, it varies between 0.5% and 1.5% of the Material Execution Budget of a Work (PEM). This is the total cost from the start of the work to its completion.
  • Notary fees: The notary’s office, which is in charge of the bureaucratic procedures, usually charges fees based on the range in which the price of the new work is found.
  • Land registry fees: The price of registering the new construction deed in the Property Registry is usually 0.03% of the value of the building.


Formalise your new construction documents in Prime Invest

Now that you know what a new construction declaration is and how important it is to formalise the process, are you still in doubt about what it takes to invest in a new construction home? At Prime Invest, we offer new construction property promotions that combine avant-garde architectural design with environmental sustainability, creating homes that not only reflect the comfort of luxury, but also integrate perfectly with the natural environment.

This is the case of Mane Residences , an exclusive private development located in Benalmádena. Here we have designed sustainable homes , whose exteriors are surrounded by green spaces and whose magnificent elevated location offers views of the sea and the coast. In addition, its geographical orientation allows you to make the most of the natural light and the breeze from the Mediterranean Sea.

Our passion for luxury and our commitment to excellence are reflected in every project we undertake. Contact our Property Consultancy team and we will help you in your search. Find your new home in one of our most acclaimed developments on the Costa del Sol, Punta Cana or Ibiza.


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