Checking the building licence and the first-occupation licence
The building licence is the town hall's permission to build; the first-occupation licence, or a responsible declaration where the region allows it, confirms the finished home can be lived in. Both affect your guarantee and your completion. Here is what to check, and when.
By Investidad advisory team · Last reviewed 16 Oct 2026
Two licences at two ends of the project
- Spanish name
- BUILDING LICENCELicencia de obra
- FIRST-OCCUPATION LICENCELicencia de primera ocupación, or a responsible declaration of occupation
- Issued by
- BUILDING LICENCEThe town hall
- FIRST-OCCUPATION LICENCEThe town hall
- When
- BUILDING LICENCEBefore construction
- FIRST-OCCUPATION LICENCEAfter the works are finished
- What it confirms
- BUILDING LICENCEThe project complies with planning rules and may be built
- FIRST-OCCUPATION LICENCEThe finished building matches the licence and meets the conditions for use
- Why it matters to you
- BUILDING LICENCEThe payment guarantee must be in place from the moment it is obtained
- FIRST-OCCUPATION LICENCENeeded to declare the finished building, to complete in practice and to connect utilities; it ends the payment guarantee
| BUILDING LICENCE | FIRST-OCCUPATION LICENCE | |
|---|---|---|
| Spanish name | Licencia de obra | Licencia de primera ocupación, or a responsible declaration of occupation |
| Issued by | The town hall | The town hall |
| When | Before construction | After the works are finished |
| What it confirms | The project complies with planning rules and may be built | The finished building matches the licence and meets the conditions for use |
| Why it matters to you | The payment guarantee must be in place from the moment it is obtained | Needed to declare the finished building, to complete in practice and to connect utilities; it ends the payment guarantee |
Checking the building licence before you reserve
- Ask for a copy: under Real Decreto 515/1989, the developer must have the construction authorisations available to buyers.
- Match it to the project as sold: number of homes, floors, plot and the unit you are buying. A licence for a different or smaller project is a warning sign.
- Check its status with the town hall: whether it has been granted, any conditions attached, and whether it has been challenged.
- Check the plot: a Nota simple from the Land Registry shows who owns it and what charges are registered on it.
- Confirm the guarantee: under the LOE, your payments must be guaranteed from the moment the licence is obtained.
The first-occupation licence at the end
When construction finishes, the architect signs the end-of-works certificate and the developer applies for the first-occupation licence. In some regions, a responsible declaration filed by the developer replaces the licence, followed by checks by the town hall. In Andalucía, for example, regional law accepts either an occupation licence or proof that a responsible declaration has been filed.
Article 28 of the national Land Act requires a technician's certificate that the works are finished in line with the project and the occupation authorisation, or the declaration where regional law uses one, before a finished new building can be declared at the notary and registered. The LOE adds that the declaration cannot be authorised or registered without proof of the ten-year insurance.
- Ask for a copy of the licence, or the filed declaration, before the completion date.
- Check it covers your building and, in a phased development, your phase.
- Your contract should provide for repayment of your payments with interest if the licence is not obtained, as the LOE requires contracts to state.
Licences and tourist letting
A first-occupation licence confirms the home can be lived in. It is not a tourist rental licence, which follows separate regional and municipal rules. If you plan to let, check those separately; see investing in new builds.
Questions buyers ask
- Can I complete without a first-occupation licence?
- In practice the declaration of the finished building, utility connections and most completions depend on it, or on the responsible declaration where the region uses one. Your lawyer should see it before you sign the deed.
- Who checks the licences?
- Your own independent lawyer. The notary checks the documents needed for the deed but does not act for you. Our buyer protection guide has the full checklist.
Sources
- BOE: Ley 38/1999 de Ordenación de la Edificación (consolidated)
- BOE: Real Decreto 515/1989 on consumer information in the sale of homes
- BOE: Real Decreto Legislativo 7/2015, Ley de Suelo y Rehabilitación Urbana (art. 28)
- BOE: DGSJFP resolution of 9 July 2020 on registering a finished new building (art. 28 TRLSRU)
