What buying off-plan involves
You buy directly from the developer on the basis of drawings, visualisations and a specification document (memoria de calidades). Three situations are often confused:
- Off-plan: construction has not started or has barely begun. You enter earliest, have the most choice and the longest wait.
- Under construction: you can visit the site or a show flat. Less uncertainty, slightly less choice.
- Completed: available immediately, but the price already reflects any increase in value during construction.
Entering early usually means a lower launch price, payments spread over roughly 18 to 30 months and the option to choose finishes. New builds meet current Spanish building regulations, often with an A or B energy rating, and come with statutory warranties. Shared facilities such as gyms and pools are now standard in the mid-market segment.
The payment schedule
Every developer sets its own schedule. A common pattern is a reservation fee of €6,000 to €10,000, then 30 to 40 per cent during construction and the balance on completion, usually with a mortgage. An indicative example for a €350,000 home:
| Stage | Share of price | Amount | Source of funds |
|---|---|---|---|
| Reservation | c. 3% | €10,000 | Own funds |
| Purchase contract and construction instalments | c. 27% | €95,000 | Own funds |
| Completion and title deed | c. 70% | €245,000 | Usually a mortgage |
Note that IVA (Spanish VAT) at 10 per cent is payable on every instalment, not only at completion. AJD (a stamp duty) is paid when the deed is signed. The mortgage is normally arranged on completion, once the property can be valued and registered, so the instalments during construction come from your own funds. Spanish banks typically lend 70 to 80 per cent of the valuation to residents; different terms apply to non-residents. See financing.
The statutory safeguards
- Guarantee on advance payments. Spain's building act (Ley de Ordenación de la Edificación) requires the developer to secure all advance payments with a bank guarantee (aval) or insurance and to hold them in a separate account. If the home is not delivered, you get your money back with statutory interest. If the developer cannot show this document, do not pay.
- Warranties for defects. Ten years for structural damage (seguro decenal), three years for defects affecting habitability and one year for finishes.
- Completion documents. Before handover, the Certificado Final de Obra (the completion certificate signed by the architect and site engineer) and the Licencia de Primera Ocupación (the municipal first-occupation licence) must be in place, together with the energy certificate. Without them, do not accept the keys.
Risks and checks before you sign
The main risks are delays, finishes that differ from the visualisations, developer insolvency and a change in the market during construction. You reduce them by verifying:
- the developer's track record: previous projects, delivery times, buyers' experiences;
- a building permit that has been granted, not merely applied for;
- the bank guarantee on advance payments, in writing;
- a nota simple (Land Registry extract) for the plot, free of charges;
- a detailed and binding specification;
- a delivery date with penalty clauses for delay written into the contract;
- a review of all documents by an independent lawyer, not the developer's.
Buy in areas with steady demand and avoid borrowing to the maximum, so that you keep some headroom. A snagging inspection with a list of defects is part of the final step. The full sequence is set out under the buying process.
Taxes and how new build compares with resale
When buying new from a developer in Andalusia you pay, as of 2026, 10 per cent IVA and 1.2 per cent AJD, a total of 11.2 per cent. With notary, registry, gestoría (administrative agent) and lawyer, the indicative total is 12 to 14 per cent on top of the price. Resale properties are subject to ITP (transfer tax) at 7 per cent. See costs.
New build therefore carries more tax and requires 12 to 30 months' patience, with little room to negotiate on price. In return you get lower maintenance costs, energy efficiency and statutory warranties. Resale is available immediately and easier to negotiate, but may need renovation; see renovating. An increase in value during construction is possible but not assured. Where most new building is happening is covered in the best areas around Málaga.
CostaVista guides you in assessing projects and developers, has the guarantees and the contract checked together with our local partners, and remains your single point of contact until handover. Contact us or browse the current listings.
General information, as of October 2026. This is not legal, tax or financial advice; for your own situation, consult an independent specialist.