Buying Off-Plan Property in Spain: A Practical Guide
Buying an off-plan property in Spain allows you to choose a home during the early stages of a development, before construction is complete.
This can offer advantages over buying a completed property: launch prices, a wider choice of units within the development, options to customise finishes and payments spread throughout construction.
If you're looking for a new-build property on the Costa Blanca or Costa Cálida, here's how buying off-plan works, what benefits it offers and what guarantees protect your purchase.
What Does Buying Off-Plan Mean?
Buying off-plan means purchasing a property before construction has been completed.
You can reserve your home before building work begins or while construction is already underway.
Floor plans, computer-generated images, building specifications and development documents help you understand what you're buying. Some developers also offer show homes or the opportunity to visit one of their completed developments.
This gives you a clear idea of your home's layout, finishes and position within the residential complex.
The Advantages of Buying Off-Plan in Spain
1. Launch Prices
Some developers offer introductory prices during the initial sales stages.
As construction progresses and properties are sold, prices may be revised.
Buying early can therefore give you access to prices or purchase conditions that may no longer be available later.
Not all developments follow this approach, and future price increases are not guaranteed.
2. More Choice Within the Development
Two apartments in the same development may have similar layouts but differ in orientation, floor level, views or terrace size.
During the early sales stages, there's usually a wider choice of available properties, giving you more options to find the one that suits your preferences.
3. Options to Customise Your Home
Buying during construction may allow you to choose certain finishes for your new property.
Depending on the developer and construction stage, your options could include:
- Flooring and wall finishes.
- Kitchen colours and finishes.
- Bathroom tiles and fittings.
- Additional equipment or installations.
Some options may be included in the purchase price, while others come at an additional cost.
The available choices and their conditions vary between developments.
4. Payments Spread Throughout Construction
With many off-plan developments, you don't pay the full purchase price at the beginning.
Typically, you make an initial reservation payment, followed by agreed instalments during construction, with the balance due when you sign the title deed before a notary.
This can help you plan your savings and financing before your new home is ready.
How Do You Pay for an Off-Plan Property in Spain?
Each developer sets their own payment terms, but the process generally follows four stages.
1. Reservation
You choose your property and secure the reservation under the agreed terms.
2. Private Purchase Contract
The contract sets out the price, property specifications, payment schedule and expected completion date.
3. Construction Payments
You make the agreed instalments, subject to the legal safeguards applicable to advance payments under the circumstances of the development.
4. Title Deed and Key Handover
Once the property is completed and meets the legal requirements for handover, you sign the title deed before a notary and pay the outstanding balance.
Example: Buying an Off-Plan Property for €300,000
Imagine you're buying an apartment for €300,000, excluding taxes and purchase costs.
The developer might offer the following payment schedule:
- Initial reservation: €6,000.
- Further payments during construction: €84,000.
- Remaining balance on completion: €210,000.
Total purchase price: €300,000.
In this example, you would pay 30% before signing the title deed, including the reservation, and the remaining 70% at completion.
This is an illustration. Payment amounts and dates vary between developments.
You'll also need to budget for taxes and purchase costs.
New residential properties subject to the standard VAT regime generally attract 10% VAT. Stamp duty (AJD) also applies, with rates depending on the autonomous community and the circumstances of the purchase, alongside other transaction costs.
If you need a mortgage, you can explore your financing options with a bank while construction is underway. The amount a bank is prepared to lend depends on its assessment and your circumstances, not necessarily on the balance due at completion.
What Guarantees Protect Off-Plan Buyers in Spain?
Spanish law provides specific safeguards for payments made towards a property before construction is completed.
Under Spain's Building Regulation Act (Ley de Ordenación de la Edificación), developers must provide a bank guarantee or surety insurance for advance payments covered by the law, from the time the building licence is obtained.
These payments must also be deposited in a special account designated for the construction of the properties.
Where the legal conditions are met, these safeguards provide for the return of protected payments plus the corresponding statutory interest if construction does not start or is not successfully completed within the agreed timeframe.
The applicable guarantees and payment conditions should be documented as part of your purchase.
If you're considering a development that has not yet obtained its building licence, make sure you understand the reservation conditions, any payments requested and the applicable refund arrangements.
How Can You See What Your Property Will Look Like?
Even before your home is built, the development documents provide information about its layout and specifications.
Floor plans show the room layout and dimensions. Building specifications describe the proposed materials and installations. Site plans show where your property will be located within the development.
Computer-generated images help you visualise the finished project, while the plans and specifications included in your contract define the features agreed with the developer.
You can also check exactly what's included in the price, such as appliances, air conditioning, parking, storage or other equipment.
This allows you to compare developments and understand what each property includes.
When Will You Receive the Keys?
The expected completion date or delivery period is established in your purchase contract.
During construction, developers may provide updates on building progress and the remaining stages of work.
Handover takes place once the property is finished and meets the necessary legal requirements.
The contract also sets out the terms relating to completion deadlines and what happens if they change or are not met.
This information helps you plan your move, travel arrangements or preparations for using your property.
Can You Buy Off-Plan in Spain While Living Abroad?
Yes. You can buy an off-plan property in Spain without living in the country.
Whether you're based in the UK, Ireland, Germany, Sweden or elsewhere, you can receive floor plans, development information, photos and videos remotely.
You can also arrange video viewings and stay in contact with your estate agent throughout construction.
To complete the purchase, you'll need the relevant documentation, including a Spanish NIE (Foreigner Identification Number).
Certain procedures and signatures can also be handled by an authorised representative using a power of attorney, provided the document grants the necessary powers and meets the applicable requirements.
For more information, read our guide to using a power of attorney to buy or sell property in Spain.
Where Can You Buy Off-Plan on the Costa Blanca and Costa Cálida?
The Costa Blanca and Costa Cálida offer developments with apartments, penthouses, townhouses and villas sold at different stages of construction.
On the southern Costa Blanca, you can explore areas such as Torrevieja, Orihuela Costa, Guardamar del Segura, Ciudad Quesada, San Miguel de Salinas and Pilar de la Horadada.
On the Costa Cálida, locations such as San Pedro del Pinatar, San Javier and Los Alcázares also offer new-build developments.
Each project has its own construction schedule, available property types, payment terms and customisation options.
Alongside price and location, comparing the sales stage and available units within each development can help you identify the right opportunity.
Explore Our New-Build Properties in Spain
At VIVEE Real Estate, we work with new-build developments across the Costa Blanca and Costa Cálida.
We can help you compare projects, check current availability, review property specifications and understand the purchase conditions for each development.
Explore our new-build properties on the Costa Blanca and Costa Cálida.
If you have a budget in mind, prefer a particular location or want information about properties currently under construction, we can help you find suitable options.
About VIVEE Real Estate
At VIVEE Real Estate, we help Spanish and international buyers find homes on the Costa Blanca and Costa Cálida.
Our role goes beyond showing you properties.
We want to help you understand the local property market, compare developments and choose a home that suits the way you want to live, invest or spend time in Spain.
Whether you're looking for a new-build or resale property, we guide you through the buying process and help coordinate the necessary steps.
On our website, you'll find:
- New-build and resale properties.
- Guides for international buyers.
- Articles about property investment and lifestyle.
- Information about local areas and new developments.
- An updated selection of properties for sale on the Costa Blanca and Costa Cálida.
