Buying Off-Plan Property in Spain: Risks and Legal Protection

Buying a property that has not yet been built, or is still under construction, can mean a better choice of unit and a lower price than the finished product. It also means paying before the property exists. Spanish law gives off-plan buyers strong protection, but only if it is in place before you pay. Tomas Ballestero Lawyers checks it for you before you sign.

Off-planWhat buying off-plan means

You reserve a property in a development that is still on paper or under construction, sign a purchase contract with the developer, and pay part of the price in instalments during construction. The balance is paid at completion, before the notary, when the finished property is handed over with its licence of first occupation.

The risksWhat can go wrong

• The developer failsIf the developer cannot finish the project, the money paid on account is at risk unless it is protected by a guarantee.
• No guaranteePayments made without a bank guarantee or insurance policy, or paid into an ordinary account, are not protected in the same way.
• LicencesA development sold before the building licence is granted may be delayed, changed or never built.
• ChangesSpecifications, materials or layout that change during construction, or extras you assumed were included.
• DeliveryA completion that slips without consequences for the developer if the contract does not provide for it.

Your protectionThe guarantee required by law

Spanish law requires the developer to guarantee every payment received from the buyer before completion, with a bank guarantee (aval bancario) or an insurance policy, and to receive the payments in a special account. If the property is not finished or not handed over, the guarantee covers the return of what you paid. Before you pay anything, your own lawyer has to confirm that the guarantee exists and covers your payments.

Before you signWhat we check

• The guaranteeAn individual bank guarantee or insurance certificate for your payments, and the special account they are paid into.
• The licenceThe building licence granted for the development.
• The developerThe company in the Mercantile Registry and its title to the land in the Land Registry.
• The specificationsA detailed description of the property, the materials and what is included, attached to the contract.
• CompletionA delivery date in the contract and what happens if it is not met.
• Structural insuranceThe developer’s structural insurance (seguro decenal), required by law for new homes.

At completionBefore you accept the keys

Before completion we check the licence of first occupation, the registration of the new building and the cancellation of the developer’s mortgage on your unit. For the condition of the property itself we advise an inspection by an architect. We can put you in touch with Sergio Tomás Arquitectos in Jávea, an architect we usually work with, or you can instruct one of your own choice.

Frequently asked questions

Is it safe to buy off-plan in Spain?

It can be, with the right checks: a valid guarantee for every payment, a granted building licence and a contract reviewed by your own independent lawyer before you sign or pay.

Should I use the developer’s lawyer?

No. The developer’s lawyer acts for the developer. Your own lawyer acts only for you.

What taxes does an off-plan purchase pay?

A new property pays VAT and stamp duty instead of transfer tax. We set out the taxes and costs of your purchase in writing before you sign.

Can I buy off-plan from abroad?

Yes. The contract and the completion can be signed by power of attorney. Only the NIE has to be applied for in person, in Spain or at a Spanish consulate.

How we work

From our office in Jávea and the associated office in Dénia we work across the northern Costa Blanca: Jávea, Dénia, Moraira, Teulada, Benitachell, Benissa, Calpe and Altea. See also property lawyers on the Costa Blanca and the nota simple.

Tomas Ballestero Lawyers has advised international clients on Spanish property for more than 30 years. We work in English, French and Spanish, and we act for the buyer alone.

The lawyers who will handle your matter

José Manuel Tomas

Property, Inheritance and Donations · Admitted to the Valencia Bar in 1992 (no. 6407) · Alicante Bar no. 9382

José Rico

Family Law · Valencia Bar no. 12075

Mariano Ortuño

Valencia Bar no. 6041

Manuel Lopez de Andujar

Property, Inheritance and Donations · Valencia Bar no. 7773

Juan Poch

Property, Inheritance and Donations · Alicante Bar no. 3607

María Salvá

Property, Inheritance and Donations – Dénia · Alicante Bar no. 3699

Antonio Rodríguez de Sola

Property, Inheritance and Donations – Dénia · Alicante Bar no. 3374

Selling a property? See selling a property in Spain as a non-resident.

How we meetIn person in Jávea, or 100% remote

In person in JáveaMeet us at our office in the Centro Comercial Arenal, Avenida del Pla 126. Meetings in English, French or Spanish.

100% remote, from homeMost of our clients never need to travel. We work by email, phone, WhatsApp and video call, and you sign through a power of attorney. Only the NIE has to be applied for in person, in Spain or at a Spanish consulate.

How much do you charge?

Every case is different, so before any work starts we send you a written quote. You know our fee from the beginning, with no surprises at the end.

Next stepWhat happens when you contact us

1. You send your enquiryThrough the form below, by phone, WhatsApp or email. A few lines are enough.
2. A lawyer reads itNot an assistant: one of our lawyers reviews your situation and replies personally, the same day.
3. We tell you the next stepWhat needs to be checked first, and which documents would help.
4. We confirm scope and feeIn writing, before any work starts.
5. You decideNothing is commissioned until you say yes.

This page is general information about Spanish law and does not constitute legal advice. Every case is different and you should take advice on your own circumstances before acting.