Buying off-plan

What "off-plan" means

You are contracting to buy a property that is not finished, sometimes not started. You pay in instalments against construction milestones, and you complete when the developer obtains the Licence of First Occupation.

The upside is entry price and choice of unit. The trade-off is time and the fact that your money is committed before the thing exists.

The payment shape

• Reservation deposit — typically €6,000–€20,000, takes the unit off the market.
• Private purchase contract — usually 20–30% of price, less the reservation, within 30 days.
• Staged payments — the remainder of the deposit portion, tied to construction milestones.
• Completion — the balance, normally 50–60%, paid at notary when the property is delivered.

Your money is meant to be protected

Spanish law requires developers to hold buyer instalments in a segregated account and to provide a bank guarantee or insurance policy covering those amounts if the development is not delivered.

This is the single most important thing to verify before signing. Ask for the guarantee document, and have your lawyer confirm it names you and covers each instalment. A developer who cannot produce it is a developer to walk away from.

Costs on top of the price

• VAT (IVA) at 10% on new-build residential property.
• Stamp duty (AJD) at 1.2% in Andalucía.
• Notary and land registry fees — roughly 0.5–1%.
• Legal fees — typically 1% plus VAT.
• Mortgage costs, if applicable — valuation and arrangement fees.

Budget 12–13% above the headline price. The investment calculator models this for a specific unit.

Where off-plan goes wrong

• Completion slips. A quarter is an estimate, not a commitment — build a year of tolerance into your plans.
• Specification drift. Get the quality schedule attached to the contract, not referenced by it.
• Currency movement, if you are funding from outside the eurozone.
• Buying the render rather than the location. Visit, or have someone visit for you.

Get independent legal advice

Use a lawyer who acts for you and only you — not one recommended by the selling agent. This page is general information about how off-plan purchase works in Spain and is not legal, tax or investment advice.