Occupancy Licence

What is the Occupancy Licence?

The Occupancy Licence, also known as the Cédula de Habitabilidad, accredits that a property complies with the technical regulations for habitability in Spain. It is necessary to formalise rental and purchase and sale contracts, and to register water, electricity and gas services or to reinstate these services in the event that they have been cancelled for any reason.

Importance of obtaining an Occupancy Licence

The Occupancy Licence is important because it allows us to be sure that the property complies with all the legal requirements regarding urban planning in accordance with the current regulations. This is why it is always recommended to obtain the certificate. However, not having a license is quite common. The important thing is to know whether or not the property can obtain one. In some cases, it was simply not applied for and is not a major problem beyond the cost of obtaining it now. To properly assess the risk, it is important to find out before signing if there are any impediments to being licensed, such as unfinished roads, out-of-standard sizes, or lack of street lighting in the area.

Data included in the Occupancy Licence

The Licence of Occupancy includes the address of the property and the province where it is located, the useful square metres, the interior composition of the dwelling (bedrooms, bathrooms, kitchen and living room), the recommended number of occupations established by the corresponding municipality, the date of granting and expiry. It is important to note that a Cédula de Habitabilidad never contains the name of the owner of the property and includes information about the sewerage connection.

Duration of the Occupancy Licence

The duration or validity assigned to the Occupancy Licence is from 5 to 10 years, depending on the municipality in which it was applied for. Once the Cédula de Habitabilidad has expired, the same procedures must be followed as were originally carried out, including the modifications that the composition of the dwelling has undergone over the years. It is important to bear in mind that in many homes, extensions or modifications that have been made over the years may not comply with current planning and cannot be legalised, which could become a problem in the event of wanting to sell the property.

Do you need to obtain an occupancy licence for your property in Spain?

At our law firm we can help you to manage this process efficiently and quickly. Don’t risk your investments and make sure you comply with all the legal requirements to formalise rental and purchase contracts and register basic services. Contact us today for more information!