Spain's Housing Law (Ley de Vivienda 12/2023) introduced buyer protections including mandatory allocation of purchase costs (notary, land registry, mortgage tax) to sellers/developers rather than buyers, stronger developer deposit insurance requirements, enhanced pre-contract information obligations, and anti-squatter measures. For Costa Blanca new build buyers, the most practical changes are: developers must bear more transaction costs, and the developer's stage payment guarantee regime is more strictly enforced.
Spain's Ley de Vivienda (Housing Law 12/2023) was the first comprehensive Spanish housing legislation in decades. Much of the press coverage focused on rent controls and stressed zones — but the law also introduced substantive changes for property buyers, particularly those purchasing new build off-plan. These changes affect who pays transaction costs, what information developers must provide before exchange, and how stage payments during construction must be protected. Understanding the buyer-protection provisions is relevant to any new build purchase on the Costa Blanca in 2026.
Purchase Cost Allocation: Who Pays What Changed
One of the most significant practical changes in the Housing Law affects the allocation of purchase transaction costs:
Pre-2023 practice: Spanish conveyancing tradition allocated many purchase costs to buyers — including, in many transactions, the developer's portion of notary fees, land registry costs, and gestión (administrative processing). This was a negotiating outcome rather than a legal requirement, but it was standard practice in many developer contracts.
Post-2023 rule: Article 20 of the Housing Law explicitly establishes that the seller/developer bears:
The buyer continues to pay:
Practical impact for new build buyers: Developers can no longer contractually shift their infrastructure costs to buyers. In practice, some developers adjusted their list prices to recapture these costs — so buyers should be aware this is a regulatory floor, not necessarily a net cost reduction, but it does create price transparency and removes the hidden cost loading that previously existed in some contracts.
Off-Plan Stage Payment Guarantees: Stricter Enforcement
Off-plan (sobre plano) purchases — buying a property before or during construction — are common on the Costa Blanca new build market. They typically involve stage payments: a deposit at reservation, a further payment at exchange (contracts privados), and the balance at completion (escritura).
The existing legal framework (Ley 57/1968): Spain has had legislation since 1968 requiring developers to insure or bank-guarantee all stage payments received before completion. If the developer fails to complete (insolvency, planning failure), buyers are entitled to full recovery of their stage payments plus statutory interest (currently 6% per annum). This law was strengthened after the 2008 financial crisis.
What the 2023 Housing Law adds:
Practical advice for Costa Blanca buyers: Always verify that your stage payment guarantee is:
This is your lawyer's most important job on an off-plan purchase.
Pre-Contract Information Obligations
The Housing Law introduced enhanced pre-contract information requirements that developers must comply with before a buyer signs any binding document (including reservation agreements):
Mandatory pre-contract disclosure includes:
Cancellation rights: If a developer fails to provide this information before a buyer signs a reservation agreement, the buyer has enhanced cancellation rights and can recover any preliminary deposit paid.
For buyers: The practical implication is that a reservation agreement signed in the absence of the above disclosures is challengeable. This matters if you're purchasing at a trade fair, via an agent, or remotely — where the rush to sign sometimes precedes proper disclosure. Your solicitor should verify that all disclosure requirements are met before you sign anything.
Anti-Squatter Provisions: Protection for Unoccupied New Build
The Housing Law and subsequent regulations introduced specific measures targeting unlawful occupation (okupa/squatting) of residential property. This is particularly relevant to investors buying new build on the Costa Blanca for holiday rental or future sale, who may leave properties unoccupied for extended periods.
What the 2023 changes introduced:
Important caveat: The fast-track procedure applies to properties that were unoccupied before the unlawful entry. Properties occupied by someone with any form of formal agreement (even informal) require the standard civil eviction process, which remains longer.
Practical advice for investors: Register your new build property with the land registry and municipal census as soon as possible after completion. Ensure the property is clearly marked as owned and monitored. The 48-hour police intervention window requires a prompt response to any unlawful entry.
What the Housing Law Does NOT Affect for Costa Blanca Buyers
Given the extensive press coverage of the Housing Law, it's worth clarifying what it does NOT change for typical Costa Blanca new build purchasers:
Rent controls: The stressed zone rental cap mechanism only applies in areas designated as 'residential stressed zones' by autonomous community governments. The Valencia Community (which covers the Costa Blanca) has NOT designated any areas as stressed zones as of 2026. Rental income from Costa Blanca properties is not subject to the Housing Law's cap provisions.
Tourist rental regulation: The Housing Law explicitly does not regulate tourist (holiday) rentals, which remain governed by each autonomous community's tourism regulations. Valencian Community tourist rental regulations are separate legislation.
Property purchase taxes: The Housing Law did not change IVA rates on new build (10%) or ITP rates on resale. These remain regional taxes set by each autonomous community.
Foreign buyer restrictions: The Housing Law introduced no new restrictions on non-EU buyer purchases. Foreign nationals (including UK citizens post-Brexit) continue to purchase on the same legal basis as Spanish nationals for new build property.
The Bottom Line
Spain's 2023 Housing Law materially improved buyer protections in several areas relevant to Costa Blanca new build purchasers: clearer cost allocation, stricter stage payment guarantee enforcement, mandatory pre-contract disclosure, and improved anti-squatter procedures for unoccupied properties. For buyers transacting in 2026, these protections are in force — but they are only as effective as the legal representation ensuring they're applied. Purchasing with a Spanish solicitor who specialises in new build is not optional when buying off-plan on the Costa Blanca. Browse our current new build listings to see available developments across the region.
Frequently Asked Questions
1What are the main buyer protections in Spain's new Housing Law?▼
2Does Spain's new Housing Law affect new build buyers on the Costa Blanca?▼
3Are off-plan stage payments protected in Spain?▼
4What costs does a developer pay under Spain's new Housing Law?▼
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