Buying off plan in Spain: deposits, guarantees and what to check at each stage

By RB Place, estate agency for the Costa Blanca, Costa Cálida and Costa de Almería

Many of the new homes sold on the Spanish coast are bought off plan: you sign while the development is still a drawing or a building site, pay in stages, and take the keys a year or two later. Done properly, it is the way to get a new home at a fixed price, with a modern specification and the choice of plot or floor. Done carelessly, it means paying large sums to a company you cannot see, for a home that does not exist yet. This guide explains how an off-plan purchase works in Spain, what the law does to protect your payments, and what to check at each stage, with the detail inside the FAQ sections.

⚠️ This guide describes the general rules in force in October 2026. Payment schedules and contract clauses vary from one developer to another, and your lawyer should check every document, the reservation agreement included, before you pay anything.

In a nutshell

• Three stages: a reservation, a private purchase contract, then the public deed at the notary when the home is finished.

• A typical schedule: a few thousand euros to reserve, a first instalment at the private contract, sometimes further instalments during the build, and the balance at the notary.

• Since 2016, the developer must guarantee the sums it receives from the moment the building licence is granted, with a bank guarantee or a surety insurance policy, and must pay them into a special account used only for the construction.

• If the developer does not deliver, you can cancel and recover everything paid, with VAT and legal interest, from the guarantor if the developer has not refunded you within 30 days of a formal demand.

• VAT at 10% is due on each instalment as you pay it, not in one go at the notary.

• After delivery, the law gives one year on finishes, three on habitability and ten on the structure, backed by compulsory ten-year insurance.

How does buying off plan work in Spain?

An off-plan purchase runs in three stages. The reservation takes the home off the market for a few weeks while your lawyer checks the project and the developer prepares the contract; depending on how it is drafted, it can already create obligations on your side, so have it checked before you sign it. The private purchase contract fixes the price, the specification, the plans, the payment schedule and the delivery date. The public deed (escritura) is signed at the notary once the home is finished and has its first-occupation licence or the equivalent document: you pay the balance, receive the keys, and the deed is then filed at the land registry, which records you as owner a few weeks later.

Between the contract and the deed, you pay in instalments while the developer builds. Those instalments are the point of the whole exercise, and the reason Spanish law regulates them closely.

Frequently asked questions

Can I buy off plan without being in Spain? Yes. The reservation and the private contract are usually signed remotely. The deed is signed in person at the notary, or by a representative holding a notarised power of attorney. RB Place accompanies you at the signing, as described on our administrative support page.

What is a key-ready development? A development sold finished or almost finished, so you sign the deed within weeks rather than years and pay most of the price at once. Our new-build homes page explains the difference.

How long does delivery take? It depends on the stage of the project when you sign. Twelve to twenty-four months is a common range for a development that has just started; a few months when the building is well advanced. The contract date is what counts.

The payment schedule: what you pay and when

Every developer has its own schedule, so read the contract rather than relying on a rule of thumb. As an illustration, a 300,000 euro villa on the Costa Blanca might be paid like this: a reservation of 5,000 euros; a first instalment at the private contract a few weeks later bringing the total to 30% of the price, so 85,000 euros more; one or two further instalments during the build; and the balance of 60% to 70%, 180,000 to 210,000 euros, at the notary against the keys. Some developers ask for 20% at contract and more during the build, others for 40% and nothing until delivery.

Two things to look at in the schedule. First, how much is due before the building licence, because the legal guarantee described below only becomes compulsory from the licence. Second, whether the instalments are tied to progress on site or simply to dates, since a date-based schedule can have you paying for a building that has not started.

Frequently asked questions

Is the reservation refundable? It depends on the document you sign and the conditions it contains. Many reservation agreements keep the deposit if you withdraw without cause, refund it if the developer cannot deliver, and some make it conditional on your lawyer's checks. Read the clause before paying, and ask for the conditions you need.

Can I pay more upfront to get a discount? Some developers offer one. Weigh the discount against the fact that a larger sum sits with the developer for longer, and make sure the whole of it is covered by the guarantee described below.

What happens if I cannot pay an instalment? The contract will contain a penalty clause and the developer may be entitled to cancel. Clauses that are disproportionate can be challenged as unfair under Spanish consumer law, but that is a dispute you want to avoid: secure your financing before signing the private contract, not after.

How are your payments protected? The 2015 rules

Spain reformed the protection of off-plan buyers after the losses of the 2008 crisis. Since 1 January 2016, the first additional provision of the Building Act (Ley 38/1999, as amended by Ley 20/2015) sets four obligations for any developer taking money before delivery.

The developer must guarantee the sums received, from the moment the building licence is obtained, either with a bank guarantee or with a surety insurance policy from an insurer authorised to operate in Spain. The guarantee covers the amounts paid, the VAT on them and legal interest from the date of each payment. The money must be paid into a special account, separate from the developer's other funds, which can only be used for the construction of that development, and the bank opening that account must have required the guarantee first. At the signing of the contract, the developer must hand you the document evidencing the guarantee for your purchase, individualised to you. And the contract itself must state your right to a full refund, with tax and interest, if the building does not start or is not delivered on time.

If the developer fails to deliver, you can cancel the contract and demand the refund by a formal notice with proof of receipt. If the developer has not paid within 30 days of that notice, you claim directly from the bank or the insurer, which cannot raise against you any dispute it has with the developer. The guarantee is released once the home has its first-occupation licence or equivalent document and has been handed over. One deadline to know: where the guarantee is a bank guarantee, it lapses if you have not formally demanded cancellation and refund from the developer within two years of its breach.

Frequently asked questions

Is a reservation deposit covered? The legal obligation to guarantee starts with the building licence, so a reservation paid before the licence is not automatically covered. It can be, if the guarantee the developer later issues includes it. Ask whether the licence exists; if it does not, keep the reservation small, make it conditional on the licence being granted by a set date, and have your lawyer check that the guarantee certificate covers it.

Do I get a certificate for every payment? Not necessarily one per payment. The guarantee is individualised to you and can cover the whole schedule of instalments. What matters is that the certificate names you, states the amount covered, and that the amount matches what you will pay before delivery.

Is the special account a blocked account? No. The developer can draw on it, but only for the construction of the development. The protection comes from the guarantee, not from the account being frozen. Some developers go further by contract and agree not to touch the funds until delivery; if a developer tells you that, ask to see it in writing.

Who can be the guarantor? A credit institution or an insurer authorised to operate in Spain, both supervised. Your lawyer checks the name on the certificate against the Bank of Spain register or the insurance supervisor's register.

What interest does the guarantee add? Legal interest, set each year in the state budget: 3.25% for 2026. A refund covering several years is calculated with the rate in force for each period.

What are the penalties for a developer that does not comply? Failing to put the guarantee in place is a consumer protection offence punishable by a fine of up to 25% of the amounts that should have been guaranteed, on top of the civil liability.

What to check before you pay a reservation

The reservation is the moment to do the homework. Your lawyer should look at six things. The land: a land registry extract (nota simple) showing that the developer owns the plot, with any mortgages or charges. The planning status: the building licence from the town hall, or at least the planning permission and the expected date of the licence. The developer: its company details, its track record, whether it has delivered previous developments on time, and whether it is the owner or merely an agent. The guarantee: which bank or insurer will issue it, and in what form. The contract: the delivery date, what happens if that date is missed, the clause on modifications, the arrangement for the deed and the costs each side pays. And the specification: the plans, the memoria de calidades listing the materials and fittings, and the exact plot or unit you are buying.

RB Place works with developers we have visited and followed over several years, as explained on our trusted developers page, and this list is part of what we check before proposing a project.

Frequently asked questions

What is the memoria de calidades? The specification document: floors, windows, kitchen, bathrooms, air conditioning, insulation, communal areas. It becomes part of the contract. If a brochure promises something the memoria does not list, ask for it to be added.

Should the delivery date have a penalty? A daily penalty or an express right to cancel after a grace period is a protection worth negotiating, because it makes a delay cost the developer something. Without it you still have the legal remedies, including the guarantee if the delay becomes a failure to deliver, but they take longer to use.

Do I need my own lawyer, or is the developer's enough? Your own. The developer's lawyer works for the developer. Fees vary by firm and by what is included (checks, contract, deed, taxes, NIE), so ask for a quote stating the services and whether VAT is included. In our experience the cost is modest against the price of the home.

During construction: what to expect

Once the contract is signed, the developer builds and you pay the instalments as they fall due, each with its 10% VAT. Site visits are arranged with the developer, depending on the stage of the works and site safety rules, and RB Place sends photos at each stage so you can follow progress from Switzerland; see our new-build homes page. Minor changes to finishes are usually possible until a set point in the build, priced in a written annex. Delays happen, often of a few months; the contract tells you what you can do about them, and the legal guarantee stands behind you if the delay turns into a failure to deliver.

Keep every receipt, every invoice showing the VAT, and the guarantee certificate. If you ever need to claim, the file you have built during construction is what makes the claim quick.

Frequently asked questions

What if the developer goes bankrupt? Your payments are protected by the guarantee, not by the developer's solvency. You cancel the contract, demand the refund by formal notice, and claim from the guarantor after 30 days. Mind the two-year deadline if the guarantee is a bank guarantee.

Can I sell before delivery? Sometimes, by assigning the contract to another buyer with the developer's consent. Many contracts forbid it or charge for it. If you plan to resell quickly, say so before signing.

Can I visit the site? Usually yes, by arrangement with the developer, and we organise it during viewing trips. A site visit mid-build is also the moment to check that what is going up matches the plans.

Completion: licence, snagging, deed and taxes

The home is ready when the town hall has issued the first-occupation licence (licencia de primera ocupación, or the equivalent responsible declaration in some regions), which confirms that the building matches the licence and is habitable. Do not sign the deed without it: without that document you cannot connect the utilities in your name, and it is one of the two conditions for the release of the guarantee on your payments.

Before the deed, you inspect the home with your agent or a technician and record the defects in a written snagging list, agreeing with the developer how and when they will be fixed. Then comes the notary: the balance is paid with its VAT, the deed signed, the keys handed over, and the deed is sent for registration. Stamp duty (AJD) is due on the deed, at the regional rate (1.2% in Andalusia, 1.4% in the Valencia region, 1.5% in Murcia), to be declared and paid within the regional deadline, together with notary and registry fees. Our tax guide for Swiss buyers covers the full picture.

Frequently asked questions

When is VAT paid on a new build? As you go. VAT is due on each instalment when you pay it, and on the balance at completion. Each payment should come with an invoice showing the VAT. Budget for it from the first instalment, not only at the notary.

Can I refuse to complete if there are defects? It depends on their seriousness. Minor defects are normally recorded in the snagging list and repaired by the developer after delivery under the one-year guarantee. For serious defects or a home that does not match the contract, your lawyer can negotiate repairs before signing, a retention, or a postponement. Document everything with photos.

Who pays the notary and registry? In practice the buyer pays the deed and registration costs and the developer pays the costs of the new-build declaration and the division into units, but check the contract, which can allocate them differently.

When do I get the keys? At the notary, against payment of the balance. RB Place is present at the handover and takes care of the utilities and the community registration afterwards.

After delivery: the guarantees on a new home

A new home in Spain carries three legal guarantees under the Building Act: one year for finishes (paint, tiling, joinery), three years for anything affecting habitability (damp, leaks, plumbing, electrics, insulation), and ten years for the structure. They run from the reception of the works, the formal acceptance of the building between the developer and the builder, with any reservations lifted, which can be some weeks before you receive your keys. The developer is liable in all cases, and the builder, architect and other professionals for the defects attributable to them. The ten-year structural guarantee is backed by compulsory insurance taken out by the developer, which must appear in the deed. You have two years from the moment a defect appears to bring a claim.

You should also receive the Libro del Edificio, the technical file of the building with its plans, materials and maintenance instructions, and the energy certificate. RB Place's after-sales service handles the reporting of defects to the developer during the guarantee periods.

Frequently asked questions

What does the ten-year insurance cover? Damage to the structure (foundations, beams, load-bearing walls, floors) that compromises the stability of the building. It does not cover finishes or installations, which fall under the one- and three-year guarantees.

How do I report a defect? In writing to the developer, with photos and dates, within the guarantee period and within two years of the defect appearing. Keep a copy. For anything beyond small repairs, have a technical report drawn up.

Buying off plan from Switzerland: the practical points

Three points are specific to a buyer paying from Switzerland. Currency: the instalments are in euros, spread over one to two years, so plan the transfers rather than converting everything on the day the rate looks good or bad. Source of funds: Spanish banks and notaries apply anti-money-laundering rules strictly, and each transfer should come from an account in your name with a clear origin; have the documents ready before the first instalment. Financing: Spanish banks lend to non-residents, typically up to 60% to 70% of the value, but a mortgage is granted on the finished home, so the instalments during construction come from your own funds.

On Swiss pension money, be clear about one thing: the early withdrawal of second-pillar or pillar 3a capital for home ownership is reserved for your main residence and cannot finance a holiday home in Spain. Capital that has already been paid out for another legal reason, retirement in particular, is yours to use. We go through this with you before you sign anything.

Frequently asked questions

Do I need a Spanish bank account to pay the instalments? It is not a legal requirement, but it makes the payments, the taxes and the utilities much simpler. RB Place opens it for you along with the NIE; see our administrative support page.

Does RB Place hold my money? No. RB Place never receives purchase funds. Every payment goes from your account to the developer's special account, and we check that the guarantee certificate follows.

Recent changes affecting off-plan purchases (2016 to 2026)

• 1 January 2016: Ley 20/2015 replaces the 1968 rules; the guarantee becomes compulsory from the building licence, covers VAT and legal interest, and must be evidenced by an individualised document handed to the buyer.

• 1 June 2026: the Valencia region cuts stamp duty on new builds to 1.4%.

• 2026: legal interest, which the guarantee adds to any refund, is 3.25% for the year.

Final thoughts before you buy off plan in Spain

Buying off plan carries risks that the law has reduced but not removed. Three things bring them down to a level most buyers are comfortable with: a building licence before you pay anything significant, a guarantee document in your name covering what you pay before delivery, and a contract with a real delivery date and a clear consequence if it is missed. The law provides the framework; your lawyer and your agent make sure it is applied to your purchase rather than assumed. Get those three right and the rest, the plans, the finishes, the waiting, is the pleasant part.

At RB Place, we support our clients at every stage, from finding the property through to signing, including the administrative and tax formalities.

Sources and official references

• Advance payments on homes under construction, first additional provision of Ley 38/1999 as amended by Ley 20/2015 (guarantee from the building licence, special account, individualised document, 30-day claim on the guarantor after formal demand, two-year lapse of the bank guarantee, release on first-occupation licence and delivery, fines up to 25%): BOE-A-1999-21567

• Building guarantees of one, three and ten years from reception of the works, two-year limitation and compulsory ten-year insurance, articles 6 and 17 to 19 of Ley 38/1999: BOE-A-1999-21567

• VAT due on advance payments (devengo on pagos anticipados): Spanish Tax Agency, VAT manual, chapter 4

• Unfair terms in consumer contracts (Royal Legislative Decree 1/2007): BOE-A-2007-20555

• Legal interest rate for 2026 (3.25%): Bank of Spain

• Stamp duty on new builds by region: Junta de Andalucía, applying AJD; Valencia region, ATV

• Swiss pension capital and home ownership (reserved for the main residence): Federal Social Insurance Office, bsv.admin.ch

This article is for information only and is not legal or tax advice. Contracts and regional rules vary; have every document checked by an independent Spanish lawyer before you pay. Information current as of October 2026.