You are days from completion. The notary is booked, the balance is ready, and the keys to a brand-new apartment on the coast are almost in your hand. Then your lawyer asks a quiet question: is the first occupation licence in the file? On a new build in Spain, that single document decides whether you are buying a home you can live in, insure, connect and mortgage — or a building the town hall has not yet certified as legally habitable. It is one of the few things in a Spanish purchase that can, and should, stop you signing.
We have advised buyers of new and nearly-new property in Spain since 2006, and the licence of first occupation is one of the most common reasons we tell a client to pause a completion. Nothing about it is exotic. It is simply the document most foreign buyers have never heard of, sitting at exactly the point in the process where it is hardest to walk away.
The short answer
The first occupation licence (licencia de primera ocupacion, or its regional equivalent such as the cedula de habitabilidad) is the municipal certificate that a new build matches its approved plans and is legally habitable. Without it you can sign the deed, but you usually cannot get permanent utilities or a mortgage — so the licence should be confirmed before you complete, not after.
What is the first occupation licence, in plain terms?
When a developer finishes a building, the work has to be signed off twice. The architect issues a certificate that the construction is complete and matches the project. The town hall then issues the first occupation licence — its confirmation that the finished building is what was approved and may be lived in. The name changes by region; the function does not. It is the difference between a structure that physically exists and a home that legally exists.
Why should it stop me completing?
Because almost everything you expect a home to do depends on it. The utility companies distinguish between a permanent domestic contract and a temporary works supply, and without the licence you are usually limited to the temporary one — more expensive, and liable to be disconnected. Many lenders will not release a mortgage on a property that is not certified as habitable. And if you ever sell, your own buyer’s lawyer will ask the same question you should be asking now.
We have seen clients complete, on a developer’s assurance that the licence was “coming”, and then spend months on a works supply while the paperwork was sorted out. We have also acted for buyers who held back part of the price until the licence was granted, and completed comfortably a few weeks later. The second position is far easier to negotiate before you sign than after.
New build or resale — does it matter?
The licence is most obviously a new-build issue, because that is where it is first granted. But it can matter on a resale too. If the home has been extended, had its use changed, or the previous supply has lapsed, a new lender or utility company may ask for a current occupation licence or its regional equivalent before lending or connecting. We check the position on resales, not only on new builds.
Can the town hall simply refuse it?
Yes, and this is the risk worth understanding. The licence is granted on the basis that the finished building matches the approved project. If it does not — a changed layout, an extra unit that was never authorised, an encroachment onto a setback — the town hall can withhold the licence until the discrepancy is resolved. Resolving it can take time, and it is not always within the buyer’s control. Discovering this before completion is an inconvenience. Discovering it after you have paid is a problem.
What to do before you complete
The checks are straightforward, and this is the part where an independent lawyer earns their fee:
- Ask, in writing, for the first occupation licence (or the regional equivalent) and read the actual document — not a promise that it exists.
- Confirm the licence corresponds to your unit and the building as built, not to an earlier phase or a different block.
- Check that the finished property matches the approved project, so there is nothing that could cause the licence to be withheld.
- If the licence is not yet granted, make completion conditional on it, or hold back part of the price until it is — agreed in the contract, before you sign.
None of this requires you to become an expert in Spanish planning law. It requires someone independent of the developer to look for the document and tell you plainly whether it is there.
How we help
We are independent Spanish property lawyers — we act for the buyer, not the developer or the agency. On a new-build purchase we confirm the first occupation licence is in place before you release the balance, and where it is not, we build the protection into your contract so a delay at the town hall does not become your problem. If you are already under pressure to complete and are not sure the licence exists, that is exactly the moment to call us.
Talk to us before you sign. Call +34 919 499 342 (English or Spanish), or email marialuisa@costaluzlawyers.es, and we will tell you where you stand.
Reviewed by Maria Luisa de Castro, lawyer of the Ilustre Colegio de Abogados de Cadiz (No 2745), advising international buyers of Spanish property since 2006. This article is general information about Spanish property law and is not a substitute for advice on your specific purchase.
Frequently Asked Questions
Can I complete on a Spanish property without the first occupation licence?
You can legally sign the deed, but you usually should not. Without the licence the property is not certified as habitable, utility companies will only give you a temporary works (‘obra’) supply rather than a permanent contract, and many lenders will not release a mortgage. We generally advise clients to make completion conditional on the licence being in place, or to hold part of the price until it is.
What is the difference between the first occupation licence and the cedula de habitabilidad?
They serve the same purpose — confirming a home is legally habitable — but the name and the issuing rule vary by region. Some autonomous communities use the licencia de primera ocupacion granted by the town hall; others use the cedula de habitabilidad. What matters is that the correct document for the property’s region is in the file before you pay the balance.
Who is responsible for obtaining it, the buyer or the developer?
For a new build it is the developer’s responsibility to obtain it, because only the developer holds the works completion certificate the town hall requires. The problem is that the buyer is the one who suffers if it is missing at completion, which is why an independent lawyer checks for it rather than assuming the developer has it.
Does a resale property need a first occupation licence too?
Often yes. If the home has changed use, been extended, or the previous supply has lapsed, the utility companies or a new lender may ask for a current occupation licence or its regional equivalent before connecting or lending. We check the position on resales as well as new builds.
What happens to my utilities if I complete without it?
Water and electricity companies distinguish between a permanent domestic contract and a temporary works supply. Without the occupation licence you are usually limited to the temporary supply, which is more expensive and can be cut off, and you cannot always register the permanent contract in your name until the licence exists.
Can the town hall refuse the licence after the building is finished?
Yes. If the finished building does not match the approved project — a changed layout, an extra unit, an encroachment — the town hall can withhold the licence until the discrepancy is resolved. That is precisely the situation you do not want to discover after you have paid, and why the licence is checked before completion, not after.
The first occupation licence is one of several checks a full pre-purchase due-diligence review should confirm — see our complete legal guide to property investment due diligence for the rest.
The occupation licence is not the only new-build safeguard to check — see our guide to Spain’s 10-year structural guarantee.
The licence itself is only half the paperwork — see how it relates to the architect’s own completion certificate.
Getting connected depends on the same document — see our guide to what the occupation licence actually verifies.
This licence is normally confirmed around the same time keys change hands — see the practical keys handover protocol buyers should expect.
This content has been prepared with the assistance of artificial intelligence and reviewed by María Luisa de Castro, a lawyer specialising in Real Estate Law and founder of CostaLuz Lawyers.
The information provided is general and indicative in nature. It should not be used as the sole basis for making professional, legal or investment decisions, and CostaLuz Lawyers assumes no responsibility for decisions taken solely on the basis of this content.
We always recommend personalised review by a qualified professional. For most of our services, initial personalised guidance is free of charge. Get in touch.