Much new build in Spain is sold ‘off plan’: you buy on the basis of the building plans, before the development is fully built. That sounds daunting, but it is a proven model with clear rules, and often the best price.
In this guide you will read exactly how buying off plan works, what the advantages and points of attention are, and how to get in safely.
At Jansen & Brouwer Property Capital we guide you through the entire off-plan process; we check the developer, the bank guarantee and the contract, so that you buy with peace of mind.
What is buying off-plan?
Off plan means you buy a property that has yet to be built, on the basis of floor plans, specifications and 3D images. You pay in instalments during construction and receive the keys on completion.
The payment schedule step by step
- Reservation: you secure the property with a reservation fee (often €6,000 to €10,000).
- Private contract: on signing you normally pay 10% (sometimes 20 to 30% spread out).
- Instalment payments: during construction you pay the remainder in phases.
- Completion at the notary: final payment, handover of the keys and registration in the land registry.
Bank guarantee: your security
An important protection: all payments made during construction must by law be covered by a bank guarantee or insurance. Should the developer fail to deliver, you get your money back. Always check this; we do so as standard on your behalf.
Advantages of off-plan
- Best price: early buyers often pay less than at completion.
- Staggered payments: not everything at once.
- Brand new: energy-efficient, with a choice of finishes.
- Capital growth during construction: the property can rise in value before you even have the keys.
Points to watch
- Choose a reliable developer with a proven track record.
- Check the building permit and the bank guarantee.
- Have the contract reviewed by a lawyer.
- Bear in mind the completion date and possible delays.
Buying process, financing and taxes
Off plan is a form of buying new build, see also New build vs. resale and The buying process in 8 steps. For the financing, read Mortgages in Spain for Dutch buyers and for the tax side Taxes on Spanish property. Also have a look at our listings on the Costa del Sol and Costa Blanca.
Frequently asked questions
Is buying off-plan safe?
Yes, provided the payments are covered by a bank guarantee (a legal requirement) and you work with a reliable developer. We check this for you.
How much deposit do I need to pay?
Normally a reservation plus 10% on the private contract, then instalments during construction and the balance on completion.
What if the developer fails to deliver?
Then you get your deposits back through the legally required bank guarantee or insurance.
Can I finance an off-plan property?
Yes. Many Spanish banks finance new build; the mortgage normally starts on completion. Read more in our mortgage guide.
Ready to buy off plan?
Get in touch with Jansen & Brouwer Property Capital for personal advice, or view the current listings straight away.