New developments in Madrid 2026: a practical guide to buying safely (licences, timelines and guarantees)

Buying a New-Build Property in Madrid: a Practical Guide

Buying a new-build property in Madrid offers comfort, energy efficiency and a true turnkey experience. However, making the right decision requires method: verifying permits, understanding payment schedules and ensuring guarantees protect your investment. This guide outlines the essentials for buying a new-build apartment in Madrid with confidence.

1) Initial Due Diligence: Developer, Land and Permits

Before focusing on finishes, confirm three key aspects:

• Developer reliability: track record, delivered projects and after-sales service.
• Land ownership: the developer must hold valid building rights.
• Permits: approved project and granted building licence. In off-plan sales, verify the status up to the First Occupancy Licence (LPO).

BARNES tip: request a technical dossier (project, timeline and payment guarantees) and check penalties for delays.

2) Advance Payments: Security and Guarantees

New developments involve staged payments prior to completion. All advance payments must be protected by a bank guarantee or insurance bond.

• Clear payment schedule with construction milestones.
• Defined refund conditions in case of contract termination.

Checklist: individual guarantee, issuing entity, validity until delivery/LPO and enforcement procedure.

3) Reservation Contract vs. Private Sale Agreement

Reservation deposit: secures the property and sets price and timing. Duration and termination causes must be clearly defined.

Private sale contract: details payment plan, signed specifications, scaled floor plans and customisation options.

Include delay penalties and the right to a pre-completion inspection.

4) Building Warranties (Spanish LOE)

• 1 year: finishes and defects.
• 3 years: habitability and installations.
• 10 years: structural warranty (decennial insurance).

Request the decennial insurance, Building Logbook and Energy Certificate.

5) Energy Efficiency: Comfort and Long-Term Value

Quality new-build projects include advanced insulation, high-performance windows, aerothermal or geothermal systems, underfloor heating/cooling and home automation.

An A or B energy rating reduces costs, protects resale value and supports premium rental demand.

6) Customisation Options

• Clearly defined upgrade options and costs in writing.
• Strict deadlines before installation phases.
• Detailed kitchen and bathroom plans.

7) Mortgage: Developer’s Bank or Free Choice

Buyers may subrogate the developer’s mortgage or choose their own lender. Compare APR, fees and conditions carefully.

8) Pre-Completion Inspection and Handover

Before completion, carry out a technical inspection to identify defects in finishes, joinery, installations and terraces.

9) Taxes and Purchase Costs

• VAT + Stamp Duty (AJD).
• Notary, Land Registry, valuation and bank fees.
• Prorated community fees and property tax.

10) Where to Find High-End New Builds in Madrid

• Salamanca & Chamberí: premium refurbishments.
• City Centre: historic buildings with modern efficiency.
• Chamartín: contemporary developments with terraces.
• Moncloa-Aravaca, Pozuelo, Boadilla: modern villas with plots.

How BARNES Madrid Supports You

BARNES Madrid supports you from curated selection and due diligence to delivery coordination. We also offer BARNES Interiors for furnishing and home staging.