A new-build home in Spain comes with a legal safety net most buyers never read the small print on — a 10-year insurance policy against structural defects that follows the property, not the buyer.
Three warranty periods, not one
Spain’s Building Regulation Law (LOE 38/1999) sets three separate tiers of protection for a new build: 10 years for defects affecting structural stability — foundations, load-bearing walls and similar fundamental elements — 3 years for defects affecting habitability, such as weatherproofing or insulation failures, and 1 year for finishing and workmanship defects. The seguro decenal specifically refers to the 10-year structural tier.
Who actually holds the policy
The developer or builder takes out the seguro decenal before the property is sold, from an insurance company that is independent of the developer itself. The policy then transfers automatically to whoever buys the property — and to any later buyer — for whatever remains of the original 10-year term.
Why it is effectively mandatory in practice
Notaries and the Land Registry will not complete or register the sale of a new residential property without proof the seguro decenal is in place. In practice this means a developer has to have the certificate ready before completion, and a buyer should ask to see it as a matter of course.
Why the insurance route matters more than suing the builder
Structural defects often only surface years after a building is finished. By the time they do, the original construction company may have been dissolved or restructured, which is exactly why the law requires an independent insurance policy rather than relying on the builder’s own solvency years down the line.
Call us today on +34 919 499 342 or email marialuisa@costaluzlawyers.es to check a new build’s seguro decenal before you complete.
Frequently Asked Questions
What is the seguro decenal?
It is Spain’s mandatory 10-year structural insurance for new residential builds, required under the Building Regulation Law (Ley de Ordenacion de la Edificacion, LOE 38/1999). It covers damage affecting the building’s structural stability — foundations, load-bearing walls, and similar fundamental elements.
Does it cover anything besides structural problems?
The LOE sets three separate warranty periods: 10 years for structural defects, 3 years for defects affecting habitability (weatherproofing, insulation and similar issues), and 1 year for finishing and workmanship defects. The seguro decenal specifically is the 10-year structural tier.
Who takes out the seguro decenal, the buyer or the developer?
The developer or builder takes it out before selling, as a policy from an insurance company independent of the developer itself. It then transfers to whoever buys the property, and to any subsequent buyer, for the remainder of the 10-year period.
Can a new-build sale go through without this insurance?
In practice, no — notaries and the Land Registry require proof that the seguro decenal is in place before a new residential property can be formally sold (escrituracion) and registered, so a developer must have the certificate ready before completion.
What happens if a structural defect appears years after I bought?
If it falls within the 10-year structural warranty and the property had a valid seguro decenal, you claim against the insurance policy directly — not against the original builder or developer, who may no longer exist as a company by the time a defect surfaces years later.
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.
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