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What is a First Occupancy License?
A First Occupancy License (LPO), known as Licencia de Primera Ocupación in Spanish, is an administrative certificate issued by a local municipality. It officially confirms that a new or substantially refurbished building has been completed in accordance with the granted building permit and meets all applicable urban planning, health, safety, and accessibility regulations.
This document formally declares the dwelling habitable and ready for its intended use.
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How it works
Upon completion of a new construction or a major renovation project, the property owner or their architect must apply for the First Occupancy License from the local town hall. The application requires the submission of final project documents, including certifications from technical staff that the work complies with the approved plans.
A municipal inspector then typically visits the site to verify that the property meets all legal requirements, including proper utility connections and safety features. If the inspection is passed, the municipality grants the LPO, authorizing the legal occupation of the building.
Why it matters
The First Occupancy License is fundamental for the legal use of a property. Without it, a property cannot be legally inhabited, sold, or connected to utilities in many jurisdictions.
For vacation rental hosts, especially in regions like Spain, the LPO is often a mandatory prerequisite for obtaining the separate tourist license needed to legally market and rent the property to guests. Operating without an LPO can lead to significant fines, forced cancellation of bookings, and legal orders to cease all rental activities.
See the official website for current details.
Examples
- A developer in Marbella completes a new apartment complex and must obtain a First Occupancy License for each unit before they can be legally sold to buyers or rented out to tourists.
- An owner renovates an old farmhouse in Andalusia and must apply for and receive an LPO to prove the renovated structure is safe and habitable before listing it on Airbnb.
- An investor interested in a new-build villa in Valencia for a holiday let makes the purchase deal contingent on the seller providing a valid First Occupancy License.
- A property manager is unable to secure a tourist rental license (ETV) for a new property in Ibiza because the town hall has not yet issued the LPO due to a pending inspection.
Frequently asked questions
Is a First Occupancy License the same as a tourist rental license?+
What is the difference between a First Occupancy License and a Certificate of Occupancy?+
Does a First Occupancy License expire?+
What are the consequences of renting out a property without a First Occupancy License?+
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