Buying off-plan in Spain in 2026: the process, the protections and what to check
How buying a new build before it is finished works in Spain: reservation, contract, stage payments, deed, and the legal protections for your deposits.
Buying off-plan in Spain means reserving a home before it is built, paying part of the price during construction and the balance at the notary on completion. By law, every payment made before completion must be covered by a bank guarantee or insurance policy in your name, so that certificate is the first thing to check.
On the Costa del Sol, most new homes are sold this way. You get the choice of unit, floor and often some finishes, and the payments are spread over the build. In return, a large share of the price goes into a home that does not exist yet. This guide walks through each stage, the protections and the checks to make before paying anything.
How the process works
The published plans in our development records follow the same four steps, with the shares varying from one developer to the next:
| Stage | When | Typical share in our data | Example |
|---|---|---|---|
| Reservation | When you choose the unit | €6,000 to €100,000, or 1% to 3% | €10,000 at Isla Bela |
| Private contract | Within about 30 days | Most often 30% less the reservation | 30% at 360 by Cordia |
| Stage payments | Fixed dates or milestones | None, or 5% to 35% | 35% within three months at VistaLago Villas |
| Deed and keys | On completion | Usually 50% to 70% | 70% at 360 by Cordia |
VAT at 10% is added to each stage. The sections below explain what happens at each one.
1. Reservation
Once you have chosen a unit, you sign a reservation agreement and pay a deposit. This takes the home off the market while your lawyer carries out checks and the contract is prepared.
Of the 38 developments whose plans we hold, 34 publish a reservation amount. Fixed sums run from €6,000 to €100,000, and €10,000 is the most common; apartment schemes usually ask for €6,000 to €11,000. Seven ask for a percentage instead, usually 1% to 3%, and the deposits of €50,000 to €100,000 belong to villas and very large apartments.
Read the reservation terms carefully. Some developers refund the deposit if the purchase does not go ahead within a set period, and others keep an administration fee (one development we track keeps 1.5%). A few make it non-refundable after a short due diligence window, as little as two weeks, so instruct your lawyer before you reserve, not after.
2. Private purchase contract
Within a few weeks, you sign the private purchase contract (contrato privado de compraventa). This is the key document. It should set out:
- the exact unit, its built and useful areas, parking and storage;
- the price, VAT and the full payment schedule;
- the delivery date, and what happens if it is missed;
- the building specifications (memoria de calidades);
- the bank guarantee or insurance covering every payment.
The payment due at this stage is usually the biggest before completion. In our data it is most often 30% of the price less the reservation, plus 10% VAT, and it ranges from 15% at Royal River to 50% at AYANA Estepona.
3. Stage payments during construction
Many developers add one or two payments while the building goes up. They fall at fixed dates, often six or twelve months after the contract, or at milestones such as completing the structure. Isla Bela asks for two payments of 5%, while some plans have no stage payments at all and leave everything else to the end.
Each of these payments must also be covered by the guarantee described below.
4. Completion, deed and keys
When the building is finished, the developer obtains the end-of-works certificate and the right to occupy it. You are then called to the notary to sign the public deed (escritura), pay the balance, usually 50% to 70% of the price plus VAT, and receive the keys. The deed is then registered at the Land Registry.
If you are using a mortgage, this is when it is signed, because Spanish banks lend against a finished, registered home. For non-residents, loans of 60% to 70% of the value are the usual range.
The protections the law gives you
Guarantee of every payment (Ley 38/1999)
The Building Act, Ley 38/1999 (LOE), sets the rule in its first additional provision, as reworded from 1 January 2016. Any developer that takes money before completion must:
- guarantee the refund of all amounts paid plus legal interest, through an insurance policy (seguro de caución) or a joint bank guarantee (aval solidario) from an authorised entity; and
- receive the money in a special account at a credit institution, which can only be used for the construction.
This applies to all residential developments, including cooperatives. If the build is not started or finished on time, or the licence or right to occupy is not obtained, you can claim your money back with interest.
In practice, ask for an individual guarantee certificate for each payment, issued in your name. A general statement in the contract that "payments are guaranteed" is not enough on its own.
Ten-year structural insurance
The seguro decenal (article 19 of the LOE) is compulsory for new homes and covers structural damage for ten years, up to 100% of the construction cost. The law also sets liability periods: ten years for structural defects, three years for defects affecting habitability and one year for finishing defects, which are the builder's responsibility.
Licences: building licence and occupation
Before works start, the development needs a building licence from the town hall. Some developers sell before it is granted and ask for a payment when it arrives. In that case, make sure that payment and every earlier one is guaranteed.
At the end, Andalucía does things differently from much of Spain. The regional planning law, Ley 7/2021 (LISTA), in force since 23 December 2021, replaced the old first occupation licence (licencia de primera ocupación, or LPO) for new buildings built under a licence. Its place is taken by a declaración responsable de ocupación, which takes effect as soon as it is filed with the end-of-works certificate and the utility certificates. Utilities can then be connected and the deed signed without waiting for a council decision.
The trade-off is that the council can inspect later, with no time limit. Before signing the deed, ask for proof that the declaración was filed and a copy of the certificado final de obra.
What to check before you pay
- Who the developer is. The company in the contract should be the one named on the guarantee and the licence. Be cautious if the promoting company is not published.
- The building licence. Granted, pending, or obtained unit by unit after sale?
- The guarantee. An insurer or bank you can verify, and a certificate for every payment.
- The delivery date. Published dates often move, and several schemes we track have slipped by a year or more. The date in your contract is the one that counts, so check the penalty or termination clause if it is missed.
- What the price includes. VAT, parking, storage, and whether sizes are built, useful or include terraces.
- The reservation terms. Refundable, partly refundable or not, and for how long.
- Your finance plan. A mortgage can only cover the completion payment, so everything before that comes from your own funds.
Costs to budget
A new build from a developer carries 10% VAT (IVA) on the price, paid with each instalment, and 1.2% stamp duty (AJD) at the deed in Andalucía. Parking or storage bought in the same deed is also at 10%; bought separately, it is 21%. Add the notary, Land Registry, a gestoría and a lawyer, whose fee on the Costa del Sol is often about 1% of the price plus VAT. As a rule of thumb, allow 13% to 15% on top of the price for a new build.
You will also need an NIE (foreigner identification number); the assignment fee is €9.84.
Frequently asked questions
Is my deposit safe if the developer goes bust? It should be, if every payment is covered by an individual bank guarantee or insurance certificate under Ley 38/1999. Without that certificate, your protection is much weaker.
Can I get a mortgage for an off-plan home? Only for the completion payment. Banks lend when the home is finished and the deed is signed, so stage payments come from your own funds.
What if the delivery date is missed? Your rights depend on the contract and the guarantee. The law allows a refund with interest if the home is not finished within the agreed time, so the delivery date in the contract matters.
Do I still need a first occupation licence in Andalucía? For new buildings built under a licence, it has been replaced by a declaración responsable de ocupación. Ask for proof it has been filed.
Plan your payments
Our payment plan calculator shows how much you will need at reservation, contract, each stage and completion, including VAT. It also shows how much has to come from your own funds before any mortgage.