Everything You Need to Know About the New Construction Declaration Deed

13 Oct Everything You Need to Know About the New Construction Declaration Deed

The new construction declaration deed is a notarized document that specifies whether a new building is being constructed on a plot or an existing one is being modified, registering any changes above or below the land. Its main purpose is to facilitate registration in the Property Registry and establish rights such as surface rights, which allow a surface owner to temporarily build on someone else’s land while retaining ownership of the structures erected. At Barcelona Flat Hunter, we explain everything you need to know about this document.

The drafting and formalization of this deed can be carried out by a real estate developer, a construction company that builds to sell or rent, or an individual owner constructing a home on their land for personal use.

There are three main types of new construction declaration deeds:

• New construction in progress—necessary to register the construction when applying for a mortgage.
• Completed new construction—required for connecting essential services such as electricity and water.
• Old new construction—applicable when registering a property that was previously not correctly recorded in the Property Registry.

The need to process this deed depends on the future use of the property. For individuals building a home for personal residence, it is not mandatory but recommended for administrative tasks like contracting essential services. However, it is mandatory if the property is intended for rental, sale, or mortgage application. Developers and builders are required to obtain it when financing construction or selling or leasing the property.

Major renovations can require a similar legal process, depending on the extent of the changes. If the renovations involve structural modifications, such as expanding the building, adding new floors, or significantly altering the layout, then a new construction declaration may be necessary to update the Property Registry records.

However, for non-structural renovations, like upgrading finishes, installing new systems, or remodeling interior spaces without altering the building’s footprint, this type of declaration is usually not required. Instead, permits for construction work and approval from local authorities might be needed.

The cost of registering this deed varies based on the construction budget and includes the Stamp Duty Tax (IAJD), notarial fees, and registration fees, typically calculated as a percentage of the project’s execution budget, ranging between 0.5% and 1.5%.

The new construction declaration deed is essential for legally formalizing real estate developments, ensuring property and usage rights, and facilitating administrative and commercial regulation.