Buying new-build in Spain: payment and protection step by step

1. What does buying off-plan mean?

Buying off-plan means you buy a home that isn't finished yet, directly from the developer. You lock in today's price and a brand-new, unused home — but because you pay before it's ready, Spanish law sets clear requirements for how your money is handled.

Just as with a resale, you should have your own lawyer representing you, reviewing the developer, the building permit and every agreement before you sign. With us, both agent and lawyer are included under one roof.

2. How the payments are split

What positively surprises many Nordic buyers is that you don't tie up the whole sum during construction. A typical structure is a reservation followed by three payments, where the majority is paid only at completion:

This means that during construction you normally tie up a smaller share of the price, while the majority stays with you until the home is actually delivered. For many, this is exactly what makes new-build attractive: you lock in the price today but pay most of it later. Buying early in a project can mean a value that has risen by completion — but a housing market can move in both directions, so see it as an opportunity, not a guarantee.

1. ReservationA smaller fixed amount that takes the home off the market.
2. At contractAround 10% when the purchase contract is signed.
3. During constructionTwo instalments as the build progresses.
4. At completionThe final payment — the majority — when the home is ready and you receive the keys.

3. Your money is protected — the bank guarantee

What makes the structure safe is that Spanish law requires the developer to guarantee every euro you pay in advance. Under the law (LOE, updated by Ley 20/2015, in force since 2016) the developer must both take out a bank guarantee (aval) or surety insurance covering the entire advanced amount plus interest, and deposit your instalments in a dedicated account that may only be used for that specific project.

Always insist on seeing the written bank guarantee or insurance before you pay. That is precisely what your lawyer ensures.

4. From building site to your home

When the build is finished, an occupancy licence (licencia de primera ocupación) is issued — the proof that the home may be lived in. Before completion, you and your lawyer inspect the home and note any defects to be fixed (snagging). The purchase is then signed before a notary, you pay the final amount and are registered as owner.

As a new-build buyer you also have statutory warranties after move-in: simplified, one year for finishes, three years for habitability and ten years for the load-bearing structure. That gives extra security you rarely get with a resale.

5. Costs and tax

For new-build you pay IVA 10% (VAT) instead of transfer tax, plus the AJD stamp duty 1.2% in Andalusia — no ITP. On top come the notary, land registry and any gestoría, roughly as with a resale.