How New Home Construction Works on the Costa Blanca
Building a new home on the Costa Blanca follows a fixed sequence: verify the plot, commission an architect, obtain a licencia de obra mayor from the town hall, build under a registered technical team, then secure the licencia de primera ocupación (LPO) and register the finished house. Allow roughly two years from plot to keys, and expect the paperwork stages to take as much calendar time as some of the building itself.
This guide walks through each stage as it applies to Torrevieja, Orihuela Costa and the wider Vega Baja, with the taxes, timings and checks that most often catch foreign owners out.
Key Takeaways
The full journey from plot to move-in typically runs 22 to 30 months: 4 to 6 months for design and permits, 12 to 18 months of construction, 2 to 3 months for LPO and registration.
Every new house needs a licencia de obra mayor, supported by a technical project signed by a Spanish architect or engineer and compliant with the Technical Building Code (CTE).
Budget for the taxes and bonds on top of construction: 0.6% processing fee, 3.5% ICIO and a 1 to 2% waste bond, as cited for Torrevieja.
Check the plot before you pay for anything: planning classification, services, and any coastal restrictions.
If you live abroad, choose a builder who sends dated photo reports and puts the payment schedule in the contract.
Table of Contents
The stages at a glance
Stage | What happens | Typical duration |
1. Plot verification | Planning class, legal status, services, coastal limits | Weeks |
2. Design | Architect drafts the proyecto básico | Part of 4 to 6 months |
3. Licence | Town hall reviews, you receive the licencia de obra mayor | Part of 4 to 6 months, longer on complex sites |
4. Execution project | Proyecto de ejecución with full technical detail | Before works start |
5. Construction | Foundations, structure, envelope, installations, finishes | 12 to 18 months |
6. Completion | Final certificate, LPO, notary, registry | 2 to 3 months |
The timings come from this step-by-step guide to building in Spain. Local conditions move them: a Torrevieja-focused guide by an architecture practice estimates 4 to 8 months for a standard major works licence, and more near the coast or in protected areas.
Step 1: Verify the plot before anything else
Most expensive mistakes on the Costa Blanca are made before a single drawing exists. A plot can be cheap precisely because it cannot be built on as advertised.
Before you commit, have a lawyer and an architect confirm:
Planning classification. Only urban land (suelo urbano) or properly developed urbanisable land can normally take a house. Rustic land has strict limits, and a house standing without a licence can face enforcement.
Buildable volume. The local plan sets plot coverage, height, setbacks and maximum floor area. Torrevieja publishes its urban planning rules on the town hall site, and your architect reads these against your plot.
Services. Water, electricity, sewage and road access. Connecting a plot that has none can cost more than expected.
Encumbrances. Charges, easements and debts registered against the land.
Coastal restrictions. Under the Ley de Costas, land close to the shoreline carries easements. The protection easement is 100 m from the inner edge of the public maritime-terrestrial domain, reduced to 20 m on land that was already urban in 1988, and new construction is not allowed within it. Plots within roughly 500 m of the sea may also need an additional report or authorisation from the coastal authority, which adds months to permitting.
Pro Tip: Make the plot purchase conditional on the architect confirming, in writing, that your intended house fits the plan. A reservation deposit is far easier to recover than a completed purchase.
If you are comparing building with buying something older, our guide to four checks before buying a property to renovate applies the same discipline to resale stock.
Step 2: Appoint an architect and design the house
In Spain a new house cannot be built from a builder’s sketch. The licence application needs a technical project signed by a registered architect, and the construction phase needs a technical team. According to a guide to building licences in Murcia and Alicante, the project must comply with the CTE on structural safety and energy efficiency (DB-HE).
The design runs in two stages, and it helps to know the vocabulary:
Proyecto básico. The basic project: layout, volumes, elevations, areas and compliance with the urban plan. This is what the town hall reviews.
Proyecto de ejecución. The execution project: structural calculations, detailed specifications, installations, materials and measurements. Torrevieja’s own application form for major works lists the signed, professionally endorsed documentation required, and rushing or skipping this paperwork is a common route to refusals or stop-work orders.
The design is also where comfort is decided. Professionals in Alicante often say people build new rather than buy resale for fit and comfort: older stock tends to have small windows, thick masonry and layouts that do not suit indoor-outdoor living, and retrofitting efficient systems is costly. A new design can integrate aerothermal climate control, high-performance insulation and generous openings from the start.
Step 3: The licencia de obra mayor
New construction counts as major works, so you need a licencia de obra mayor from the town hall. Spanish Architects’ guide lists new buildings among the works that qualify.
In practice:
Your architect files the application, normally through the town hall’s electronic office.
The town hall’s technical services review the project against the plan and the CTE, and may ask for corrections. Each request restarts part of the clock.
You pay the associated taxes and fees. For Torrevieja, the same guide cites a 0.6% processing fee on the project’s execution-material budget (PEM), a 3.5% ICIO (the municipal construction tax) and a 1 to 2% waste management bond. Confirm current rates with the town hall before budgeting, as municipal ordinances change.
Public-road deposits can also apply: the Pacheco Arquitectos guide mentions a bond of roughly €90 per linear metre of façade for possible damage to the pavement.
Two budget examples help. If the PEM is €300,000, a 3.5% ICIO is €10,500 and a 0.6% fee is €1,800. These are illustrations of the arithmetic, not a quote, and the actual base is set by the town hall’s calculation.
Pro Tip: Do not start groundworks on the strength of a promise. Start only when the licence is issued and your site manager has the approved project on site.
Step 4: Choose who builds, and how the contract works
There are three common routes on the Costa Blanca:
Developer-led new build. You buy a home in a promotion. Less control, but the developer handles licensing and delivery.
Self-build with separate trades. You coordinate an architect, a builder and individual trades. Most flexible, most demanding of your time.
Single-contractor build. One company manages construction and the trades under one contract and one schedule.
For owners living abroad, the third route usually removes the most friction. Whichever you choose, a sound contract should include:
The scope tied to the execution project, with a measured specification of materials.
A payment schedule linked to completed stages, not calendar dates.
A start date, a completion date and what happens if either slips.
Insurance and responsibilities for defects.
A clear process for variations, priced and signed before the work is done.
To compare bidders properly, read our guide on how to choose a renovation company in Torrevieja: the shortlist method it describes works for new-build quotes as well.
Step 5: What happens on site
The build usually runs 12 to 18 months for a villa of 150 to 250 m², according to Wesna Group’s 2026 budget guide. The sequence is consistent:
Site set-out and groundworks. Levelling, drainage runs, excavation and the foundations. Local soil conditions can affect design, so the geotechnical study matters.
Structure. Reinforced concrete frame or load-bearing system, slabs and roof structure.
Envelope. Masonry walls, insulation, windows and roof. This is where the weather-tightness of the house is won or lost.
Installations, first fix. Plumbing, electrics and air-conditioning ducting inside the walls and floors.
Plastering, floors and tiling. Surfaces are prepared and finished.
Second fix and joinery. Sanitary ware, sockets, doors, kitchen, wardrobes and flooring.
Painting, external works and pool. Final coats, terraces, boundary walls, and a swimming pool if planned.
Commissioning. Testing of every system and a snagging walk-through.
At each phase the technical team inspects and certifies, and your payments should follow those sign-offs.
Why the Costa Blanca climate changes the details
The CTE is the regulatory framework for building quality. Its 2019 amendment, Royal Decree 732/2019, updated the energy-saving requirements in line with European directives on nearly zero-energy buildings. On this coast, humidity and salt air make several details matter more than the headline energy rating:
Thermal bridges at slab edges, pillars and window frames, which cause condensation and mould if poorly resolved.
Ventilated floor and foundation details to keep damp from rising into the ground floor.
Impermeabilisation of terraces, flat roofs and retaining walls, with correctly formed falls and upturns.
Corrosion-resistant fixings and metalwork, such as AISI 316 stainless steel, near the sea.
Cavity ventilation and well-detailed façade finishes.
These are the same moisture problems we repair on older homes, which is why we ask for them in new designs. Our article on demanding CTE moisture details in a coastal home lists what to ask your architect and builder to specify.
Step 6: Completion, LPO and registration
The house is not finished when the painters leave. Before you can live in it legally and connect permanent utilities, you need:
The final certificate of works signed by the technical team.
The licencia de primera ocupación (LPO) from the town hall, confirming the building matches the licensed project.
The declaration of new build (declaración de obra nueva) before a notary, then registration at the property registry.
Utility contracts in your name once the LPO is granted.
Allow 2 to 3 months for this phase, as the Wesna Group guide also notes. Owners often underestimate it, then discover the house is built but the electricity company will not issue a permanent supply.
What does it cost?
Costs depend on specification more than on location. One Costa Blanca-based builder with 25 years’ experience puts a realistic budget for a solid, modern home at €1,500 to €2,500 per m² of built area. Add to that:
The plot and its purchase taxes.
Architect and technical team fees.
Licence fees, ICIO and bonds as above.
Utility connections.
Pool, landscaping, boundary walls and furniture, which are often left out of early budgets.
A contingency. A reserve for unforeseen items is sensible on any build.
For renovation budgets, where the cost drivers differ, see how much a Costa Blanca renovation costs in 2026.
Our perspective: where new-build projects go wrong
We work in Torrevieja and the Vega Baja, mostly on renovations, extensions and new construction for homeowners, many of whom live abroad for part of the year. From that vantage, the failures we see rarely come from the walls. They come from three places.
Unclear scope. A quote that says “villa, medium specification” cannot be compared with another. The scope should reference the execution project and a measured list of materials, so that every bidder prices the same house. This is why we issue free, detailed, phased quotes: you can see what each stage covers and what it costs before signing.
Invisible progress. If you are in Manchester, Dublin or Amsterdam, you cannot walk the site on Tuesday. Regular dated photo and video updates, with the stage they correspond to, are not a courtesy but the basis for approving stage payments with confidence. We work in English as well as Spanish, so you do not depend on translation for decisions.
Water, always water. Most defects we later repair on this coast trace back to water: terraces without proper impermeabilisation, a thermal bridge nobody detailed, a pipe run chased through a wall without protection. The weakest link fails first, and in a house by the sea the weakest link is usually the junction where two trades meet. Insist that the architect and the builder agree those junctions on paper, before the work reaches them.
Our own approach is to manage the whole project under one contract, with pricing, deadlines and quality agreed up front, insurance in place and compliance handled from start to finish. For a new build, the licence design and technical direction remain with your registered architect, as the law requires, and we build to that project.
— URU Reformas
Building with us
If you are planning a new home, a swimming pool or an extension, our new build and swimming pool service is where to start. Tell us about your plot and your schedule through the contact page, and we will walk through scope, stages and a phased quote. You can also see examples of our completed work.
If you would rather extend or modernise what you already own, the options are in our guide to complete home renovation in Torrevieja, and if you are managing from overseas, read renovating a Spanish property from abroad.
FAQ
How long does it take to build a house on the Costa Blanca?
Plan on roughly 22 to 30 months from plot purchase to move-in, according to this building guide. That covers 4 to 6 months of design and licensing, 12 to 18 months of construction and 2 to 3 months for the LPO and registration. Coastal or complex sites can add several months to the permit stage.
Do I need an architect to build a new home in Spain?
Yes. The application for a licencia de obra mayor must be supported by a technical project signed by a registered architect or engineer, and the work is overseen by a technical team. A builder can construct the house, but cannot replace this project.
Can I manage the build from another country?
Yes, and many owners do. You will need a power of attorney or a trusted representative for some formalities, a contract with staged payments, and regular dated photo or video reports. Our guide on renovating from abroad explains what to arrange.
What taxes and fees apply to the building licence?
For Torrevieja, one architecture guide cites a 0.6% processing fee, a 3.5% ICIO and a 1 to 2% waste bond, each calculated on the project budget. Rates are set by municipal ordinance, so confirm them with the town hall or your architect before budgeting.
Sources
Comprehensive Guide: Obtaining Building Licences for EU Citizens in Murcia and Alicante
Guía completa para la obtención de licencias de obra mayor en Murcia y Alicante
Solicitud de licencia de obra mayor, Ayuntamiento de Torrevieja
Building your own home in Spain: a foreign buyer’s guide, Buvivo
Real Decreto 732/2019, modification of the Código Técnico de la Edificación
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