First and Second Occupancy Licences in Spain: What They Are and Why They Matter

When purchasing a property in Spain, especially in the Valencian Community, it’s essential to check if the home has the proper municipal licences. Two key documents are the first occupancy licence and the second occupancy licence.

What is the first occupancy licence?

This is an official certificate issued by the town hall once the construction of a new home is completed. It confirms that:

• The construction complies with the approved building permit and project.
• The dwelling is habitable and meets health, safety, and planning regulations.
• The property can be legally occupied and connected to utility services (water, electricity, gas).

Without this licence:

• The home cannot be legally inhabited.
• Utility companies may refuse to provide permanent services.
• The sale might not be registerable in some cases.

What is the second occupancy licence?

Also called habitability certificate, this applies to properties that have already been lived in. It is required when:

• The home is being resold, rented or renovated.
• Utility services need to be reactivated after being disconnected.
• Some municipalities require it for legal rentals or tourist licence applications.

Why are these licences important?

• They provide legal certainty.
• Many banks require the first occupancy licence to grant a mortgage.
• Without them, utilities may be denied or limited.
• They are sometimes required by the notary or land registry.