The first occupation licence (in Spanish, licencia de primera ocupación, often abbreviated to LPO) is the town hall's official confirmation that a newly built home has been constructed in line with its building permit and is legally fit to live in. On the Costa Blanca and Costa Almería it is the single most important document for a new build buyer to secure: without it you cannot sign permanent contracts for water and electricity, and connecting to mains supply on a builder's temporary "site" meter is not a substitute. In short — no LPO, no legal, connected, habitable home.
For international buyers completing on an off-plan or newly finished property, the practical rule is simple: do not sign the escritura at the notary until the LPO has been granted (or is contractually guaranteed), and always keep a copy. This article explains exactly what the licence is, how it differs from the cédula de habitabilidad and the architect's completion certificate, how the process works region by region, what it costs, and the specific risks to watch for on the Costa Blanca (Valencian Community) and Costa Almería (Andalucía).
The LPO is a municipal licence issued by the local ayuntamiento (town hall) certifying three things: that the finished building matches the approved licencia de obra (building permit) and project, that it complies with planning and building regulations, and that essential services — water, electricity, sewerage — are correctly connected and functioning. It is granted after the town hall reviews the developer's completion paperwork and, in many municipalities, sends a technician to inspect the property.
Because it confirms the home is fit for human occupation, the LPO underpins several everyday realities of ownership:
These three documents are frequently confused, and the terminology changes between regions. Here is how they fit together for a new build on our coasts.
| Document | Who issues it | What it confirms | Needed for utilities? |
|---|---|---|---|
| Certificado Final de Obra (CFO) | The project architect and technical architect (visado by their professional college) | The building work is finished according to the approved project | No — but it is a precondition for applying for the LPO |
| Licencia de Primera Ocupación (LPO) | The town hall (ayuntamiento) | The finished home matches the permit and is legally habitable | Yes — the primary document utility firms accept |
| Cédula de Habitabilidad | Regional authority / accredited technician (Valencian Community). Less used in Andalucía | The dwelling meets minimum habitability standards (size, ventilation, services) | Yes, where issued — accepted as an alternative to the LPO |
In the Valencian Community (Costa Blanca), the situation has evolved. Historically the region issued a cédula de habitabilidad separately, but for new builds the Licencia de Primera Ocupación — sometimes handled via a declaración responsable that the developer files with the town hall — is the operative document. A segunda ocupación certificate is the equivalent for resale properties changing hands.
In Andalucía (Costa Almería, and the Costa del Sol), the LPO is likewise the town hall's remit, and the cédula de habitabilidad as a standalone document is largely obsolete — the first occupation licence does the same job. For older or rural properties, occupation status can instead be evidenced through documents such as an AFO certificate, which is a different and more complex situation.
For a standard off-plan development, most of the heavy lifting is done by the developer, not you. The typical sequence is:
The stage that catches buyers out is the gap between physical completion and the licence being granted. A building can look 100% finished for weeks or months before the town hall processes the paperwork. This is exactly why your snagging inspection and completion date need to be coordinated carefully — and why an independent lawyer is essential.
Timescales vary enormously by municipality. In busy Costa Blanca town halls such as Orihuela, Torrevieja or Guardamar, and in Almería-province municipalities like Vera, Mojácar or Roquetas de Mar, processing can take anywhere from a few weeks to several months depending on backlog and whether an inspection is required. In a declaración responsable system the developer can enable occupation more quickly, with the town hall verifying afterwards.
On cost, the LPO carries a municipal tax typically calculated as a small percentage of the works budget — usually a modest few hundred euros for an apartment. For a new build purchased from a developer, this cost is normally the developer's responsibility as part of delivering a legally habitable home; you should confirm this in writing in your reservation and purchase contract. For a segunda ocupación on a resale, the fee is usually borne by the seller or negotiated.
Note the LPO fee is separate from your purchase taxes. On a new build you'll pay 10% IVA plus AJD stamp duty — 1.4% in the Valencian Community (Costa Blanca) and 1.2% in Andalucía (Costa Almería) — on top of notary, registry and legal fees. Our full taxes on buying property guide breaks these down.
| Cost item | Costa Blanca (C. Valenciana) | Costa Almería (Andalucía) |
|---|---|---|
| IVA (VAT) on new build | 10% | 10% |
| AJD stamp duty | 1.4% | 1.2% |
| Notary | ~0.2–0.5% | ~0.2–0.5% |
| Land registry | ~0.1–0.25% | ~0.1–0.25% |
| Lawyer | ~1% + IVA | ~1% + IVA |
| Gestoría | ~€300 | ~€300 |
| Rule-of-thumb total | ~13–15% | ~12–14% |
The LPO municipal fee sits inside the developer's delivery costs rather than these buyer taxes — but always confirm who pays.
Buying — or completing on — a new build that lacks a valid LPO is one of the classic pitfalls for foreign buyers. The concrete consequences include:
This is precisely why an independent Spanish property lawyer — not one recommended by the developer — should verify the LPO status before you sign. On off-plan purchases, insist that funds are protected by a bank guarantee and that the contract makes the LPO a condition of completion. The off-plan vs resale comparison covers these safeguards in depth.
The most immediate reason buyers need the licence is to switch on the lights and water. Suppliers on the Costa Blanca (Iberdrola for electricity, Hidraqua/Aguas municipal companies for water) and on the Costa Almería (Endesa, Aqualia and local operators) require the LPO reference — or the CFO plus the town hall's acknowledgement in a declaración responsable case — to establish a definitive contract in the owner's name. Our step-by-step utilities set-up guide and the energy certificate rules explain what else you'll present alongside the licence.
Yes — but the relevant document is the licencia de segunda ocupación (second occupation licence) or, in some Valencian municipalities, a renewed cédula de habitabilidad. When you change the utility contracts into your name after buying a resale home, the supplier may ask for a current occupation certificate. Many older properties never had one issued or it has lapsed, so it's worth checking during due diligence — reviewing the nota simple and confirming the occupation status before completion avoids surprises. Your lawyer will also confirm the position at the notary on completion day.
They overlap. The LPO is the town hall's licence confirming a new build is legal and habitable; the cédula de habitabilidad is a certificate that a dwelling meets minimum living standards. In Andalucía (Costa Almería) the LPO effectively covers both, and the standalone cédula is largely obsolete. In the Valencian Community (Costa Blanca) the LPO is the operative document for new builds, with a second occupation certificate used for resales.
On an off-plan or newly built purchase from a developer, obtaining the LPO is normally the developer's responsibility, as delivering a legally habitable home is part of the contract. Always confirm this in writing. On a resale, the second occupation certificate is usually the seller's cost or a negotiated item.
It is possible but risky. Best practice is to make the LPO a condition of completion, or at minimum have a firm contractual guarantee and a bank guarantee protecting your funds. Completing without it can leave you unable to arrange permanent utilities. Take independent legal advice.
The first occupation licence itself confirms the initial legal habitability of the building. For utility purposes and future resale, some municipalities and suppliers may require a renewed occupation certificate after a number of years, particularly on older resale homes. Your lawyer can confirm the current municipal requirements.
A refusal usually means the finished build doesn't match the approved permit — for example unauthorised extra floor area, a pool, or an enclosed terrace, or a coastal setback issue. The problem must be legalised or corrected before the licence can be issued. This is why due diligence by an independent lawyer before signing is essential.
Yes. Regional tourist rental registration (VUT in the Valencian Community, VFT in Andalucía) generally requires proof of legal occupation. Without a valid LPO you will struggle to obtain a rental licence.
Getting the first occupation licence right is the difference between a smooth handover and months of frustration. Mediter Real Estate helps international buyers navigate off-plan and new build purchases across the Costa Blanca, Costa Cálida, Costa del Sol and Costa Almería — working alongside independent lawyers to make sure every document, including the LPO, is in order before you sign. Contact Mediter Real Estate today to discuss new build property in these regions and buy with confidence.
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