Buying new build and off-plan in Spain: the protections, and where they end

New build is no longer the side story on this coast. In the registry data we publish in our market report, new homes went from a fifth of all recorded sales in Málaga province to almost a third within two years. Most of that supply reaches international buyers as off-plan: you sign for a home that does not exist yet. Spain protects that purchase better than its reputation suggests, but the protections only work for buyers who insist on seeing them in writing.

The deposit guarantee, and why it is the whole game

Every euro you pay before completion must be secured by a bank guarantee or insurance policy, and paid into a dedicated developer account. That is a legal requirement, born of the last crisis, and it means the difference between a delayed home and lost money: if the project never completes, the guarantee refunds your advance payments with interest.

The practical rule: the guarantee certificate is part of the paperwork, not part of the sales talk. Ask for the individual certificate for your payments, naming you, before you sign and every time you pay a stage. A developer who is vague about it has told you what you need to know.

What to check on the developer before signing

An off-plan contract is a bet on a company finishing a building. Three checks put substance behind the brochure:

The land. A nota simple for the plot from the land registry: does the developer own it, and what charges sit on it? Projects are routinely financed against the land; that is normal, but you want to see it rather than assume.

The building licence. Granted, not “applied for”. A project sold before its licence exists is asking you to carry planning risk that belongs to the developer.

The track record. Completed projects you can walk around beat renders. Ask which developments the company finished, and when.

The two documents that decide completion

At the end, two pieces of paper matter more than the finish schedule:

The first-occupancy licence (licencia de primera ocupación), issued by the town hall, confirming the building may legally be lived in. Without it, utilities and letting registrations stall — do not complete without it.

The ten-year structural insurance (seguro decenal), mandatory cover on the load-bearing structure. Ask to see the policy, not a reference to it.

Snagging belongs before completion too: defects noted at handover carry different weight than defects reported after you own the keys.

Taxes: a different pair than resale

A new home from a developer is bought with VAT plus stamp duty, a resale home with transfer tax — different taxes, different authorities. The mechanics and current figures belong in our buying-costs guide; for this page the point is simply that comparing a new-build price with a resale price means comparing two different tax loads as well.

Off-plan or resale?

The honest trade: off-plan buys you warranty cover, modern building standards and staged payments, and costs you certainty. You wait years, you cannot inspect what you buy, and the community around you assembles itself after completion — including its rules on tourist letting, which since 2025 need the community’s express approval. Resale shows you exactly what exists, at the price of older stock. Neither answer is right; what is wrong is treating an off-plan brochure as if it were a finished house.

Frequently asked questions

Are deposits on off-plan property in Spain protected?

Yes, by law: advance payments must be covered by a bank guarantee or insurance and paid into a dedicated account. The protection is real, but insist on the certificate naming you — its absence is a warning, and a claim without paperwork is a slow claim.

What happens if the developer never finishes?

With guarantees correctly in place, you recover your advance payments with interest from the guaranteeing bank or insurer. Without them, you queue as an ordinary creditor. That is why the certificate matters more than any clause in the brochure.

Can I sell an off-plan contract before completion?

Only if the contract allows assignment, and often with the developer’s consent and conditions. If an exit before completion matters to you, negotiate that clause before signing, not when you need it.

What should I check at handover?

The first-occupancy licence, the ten-year structural insurance policy, and a written snagging list of every defect. Completing first and reporting later reverses the pressure in the developer’s favour.

Do new builds pay the same purchase tax as resales?

No. New homes from a developer carry VAT plus stamp duty; resales carry transfer tax. The current mechanics are in our buying-costs guide — the comparison between a new and used home changes once tax is included.

Is buying off-plan cheaper than buying finished?

Sometimes at launch, but not reliably: developers price the discount for risk and waiting. Judge an off-plan price against completed comparable sales, not against the developer’s own later phases.