Guide To First Occupation Licences In Spain

If you're buying a new build or off-plan property in Spain, one of the most important legal documents you'll need is the Licence of First Occupation (known as Licencia de Primera Ocupación). This certificate proves that a property complies with building regulations and is fit for habitation. While your lawyer should take care of obtaining this, it's essential to understand what it is, why it's important, and what risks you face if the property doesn't have one.

What Is a Licence of First Occupation?

A Licence of First Occupation (LFO) is an administrative certificate issued by your local town hall once construction on a new property is completed. The LFO confirms that the build complies with the original building licence, local planning regulations, and is suitable for human habitation.

This licence is often required to connect your property to essential utilities such as electricity, water, gas, and telecommunications. Without it, you may be forced to use a limited temporary builder's supply, which could be cut off at any time.

In some regions of Spain, the LFO is valid for 10 years and must then be renewed as a Habitation Certificate (Licencia de Habitabilidad). However, the time frame can vary by region, ranging from 5 to 15 years.

Who Applies for the LFO?

In most cases, the property developer or builder is responsible for applying for the LFO once construction is finished. The town hall will carry out inspections to ensure the completed property matches what was approved in the original building plans.

Once approved, the LFO is granted and allows the property to be legally used as a residence. For apartment blocks or urbanisations, the LFO may cover the entire phase or complex rather than individual units.

Does It Apply to All Properties?

No. The LFO is generally only relevant to newly built or off-plan homes. Resale properties built before 1979 often won't have one, simply because the regulation didn’t exist at the time. In those cases, buyers should look for a valid Habitation Certificate instead.

That said, if you’re buying a property built after 1979, and especially one constructed in the last 10–20 years, it’s essential to ensure the LFO or Habitation Certificate is in place and valid.

Why Is It So Important?

Although you can technically complete a property purchase without an LFO, doing so carries significant risks:

• You may not be able to connect the property to essential utilities.
• You may not be legally allowed to live in or rent out the property.
• You may be unable to obtain a mortgage loan.
• The property will be far more difficult to sell in future.

In short, skipping the LFO exposes you to major legal and financial complications. Always confirm its existence and validity before signing a sales contract.

How Can I Check If the Property Has an LFO?

If you're already a property owner and aren't sure if your property has an LFO, you can request this information at your local town hall (Ayuntamiento). If no record is found, you may need to apply for one yourself. This often requires a technical report from a registered architect certifying that the property is habitable and built according to regulation.

Should You Ever Buy Without an LFO?

In most cases, no. While there may be rare exceptions—such as rustic properties in rural areas where alternative regulations apply—you should avoid completing the purchase of any new or off-plan home without a valid LFO.

It’s especially important if you plan to live in the property, rent it out, or finance the purchase with a mortgage. Skipping the LFO now may lead to long-term problems that are expensive and difficult to resolve.

What About the Habitation Certificate?

Once a property is more than 10 years old (or at the end of the LFO validity period), you’ll need to replace the LFO with a Habitation Certificate (“Licencia de Habitabilidad”). This document confirms that the property remains habitable and meets current standards.

To obtain one, you usually need an architect’s inspection and a visit to your town hall. A valid Habitation Certificate is needed for:

• Switching utility contracts into your name
• Selling or transferring ownership of the property
• Renting the property legally

If the certificate is less than 10 years old, it remains valid, and you won’t need to renew it to sell the home. If it has expired, your buyer will likely require an updated one to complete the transaction smoothly.

Don’t Rely on the Lawyer Alone

Always double-check with your legal advisor that the LFO or Habitation Certificate has been secured. Some lawyers cut corners or overlook details, especially if you haven’t hired them directly. Don't hesitate to ask questions and request written confirmation that everything is in order.

Conclusion

The Licence of First Occupation is not just another box to tick—it's essential for ensuring your property is legal, liveable, and connected to basic services. If you're buying a new home in Spain, make sure this document is present and valid before you proceed.

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SOURCES

Idealista: First Occupancy Certificate

Spanish Property Insight - Buying off-plan