Buying off-plan (sobre plano) means committing to buy while a property is still being built — you pay a reservation deposit, sign a private purchase contract (contrato de compraventa privado), make staged payments as construction progresses, and complete at the escritura pública, typically 18–36 months after signing. Buying a completed new-build is a single sale from the developer, tax-equivalent but faster. Both attract IVA at 10% and AJD stamp duty at 0.5–2%. Advance payments covered by the statutory regime should be paid into the designated special account and protected by the required bank guarantee or insurance arrangement — the buyer should verify the individual or collective protection before releasing funds. Key checks: developer background, contract review, payment-protection verification, licence confirmations (CFO, LPO / cédula where required), and snagging before handover. Platinum Legal Spain provides English-speaking coordination for off-plan and new-build purchases — book a consultation.
Off-Plan vs New-Build
Off-plan (sobre plano)
You commit to buy while the property is still on the drawing board or under construction. Payments are made progressively as building advances. Completion typically 18–36 months from private contract. See our buying new-build and stage payments guides.
Completed new-build (obra terminada)
The developer has finished the property (or is close to it) and you buy in essentially the same format as a resale — deposit, escritura, keys. IVA + AJD tax applies as with off-plan. Faster and with less delivery risk.
Practical readiness test
The certificado final de obra (CFO) and first-occupation licence (LPO / cédula de habitabilidad, where required) together indicate the property is legally complete and habitable. If they haven't been issued, you're buying off-plan or a partially completed unit.
Off-plan trade-off
Developers may offer earlier-phase pricing, but off-plan property is not automatically cheaper than the completed market value. The trade-off is between price positioning and unit choice on one side, and construction and delivery risk over 18–36 months on the other.
The Full Process
Due diligence on the developer & scheme
Developer background, land ownership and planning position for the scheme. Legal due diligence answers these before you commit.
Reservation contract & deposit
Short-form reservation contract locks the unit and pauses marketing while the private contract is reviewed. Typically €3,000–€10,000 deposit.
Private purchase contract
Main contract — property description, price, staged payments, delivery date, quality specifications, remedies, payment-protection arrangements, snagging rights. See developer contract review.
First staged payment
Typically a percentage of the purchase price paid at private contract, plus IVA on that stage. Advance payments covered by the statutory regime should be paid into the designated special account and protected by the required arrangement.
Further staged payments during construction
Further payments as milestones are reached. Each payment should be received into the special account with protection extended accordingly.
CFO, LPO & snagging
When construction is complete, the developer obtains the certificado final de obra and the first-occupation licence (or equivalent). Your snagging inspection identifies defects to be addressed pre-handover. See snagging.
Final payment & escritura pública
Final balance paid at the notary against execution of the escritura pública. Title transfers, keys are handed over.
Post-handover
Land Registry inscription, utility transfers, community-of-owners registration, and the developer's statutory liability periods commence.
Reservation Contract
The reservation contract (contrato de reserva) is a short-form document by which you pay a deposit to lock a specific unit and pause its marketing. Typical features:
- Deposit typically €3,000–€10,000 depending on the price.
- Reservation period of 30–60 days during which the private contract is negotiated and signed.
- Refundability — the reservation deposit should be reviewed carefully; some developer templates make it wholly or partially non-refundable if the buyer withdraws for reasons other than the developer's default.
- Should identify the specific unit clearly (plot, phase, plan reference).
The reservation is the point of leverage for negotiating refundability and terms — review it before you sign.
Private Purchase Contract
The private purchase contract (contrato privado de compraventa) is the main transaction document. Off-plan private contracts are typically 20–60 pages long and cover:
- Property identification — plot, unit number, address, plan references, memoria de calidades (specification schedule).
- Price and payment schedule — total price, first payment at signing, subsequent staged payments with dates or triggers.
- Payment-protection provisions.
- Delivery date — expected completion, tolerance for delay, remedies if delivery is materially delayed.
- Specifications — the memoria de calidades listing materials, appliances, fittings, options.
- Snagging & defects — the buyer's rights to inspect and require remediation.
- Termination — the circumstances in which either party can terminate.
- Governing law and jurisdiction — Spanish law, Spanish courts (typically).
Developer templates are usually drafted for the developer's benefit. Areas typically warranting attention include delivery remedies, payment-protection scope, memoria de calidades detail, snagging process and refund mechanics. See our developer contract review.
Staged Payments
Off-plan payment structures vary. Typical patterns:
- Reservation: €3,000–€10,000 (fixed).
- At private contract: a percentage of purchase price less reservation. Plus IVA on the amount paid.
- At structural milestones during build: further payments split across 2–4 stages.
- At escritura (handover): the balance, often 40–70%, plus final IVA and AJD.
See our staged payments guide.
IVA timing: IVA is charged at 10% on each staged payment as it's paid. Each payment triggers an IVA invoice from the developer. AJD stamp duty is triggered at the escritura and is calculated on the full purchase price.
Advance-Payment Protection
Under the current Spanish consumer-protection regime (Ley 20/2015 amended and largely replaced the earlier Ley 57/1968 framework), advance payments made toward the purchase of a home should be paid into a designated special account and protected by a bank guarantee or insurance arrangement covering repayment if the developer fails to deliver in the terms and conditions foreseen in the applicable law and the contract. See our bank guarantee and deposit protection guides.
Practical points to check:
- Confirm precisely which developer defaults, delivery failures and repayment obligations are covered. Do not assume that every delay or specification dispute automatically allows the guarantee to be called.
- Ask for verifiable documentation of the protection arrangement — modern guarantees or insurance certificates may be issued electronically rather than as paper originals.
- Check whether protection is individual (a certificate naming you as beneficiary) or collective (covering all buyers of the scheme under a single arrangement).
- Verify the position before releasing each staged payment, not just the first.
- Where the protection arrangement isn't clearly documented, seek advice before making further payments.
Verify individual or collective protection before releasing funds
The consumer-protection regime for advance payments is important, but the exact scope depends on the statutory conditions and the transaction's specific arrangements. Verifiable documentation is key.
Delays & Contractual Remedies
Construction programmes can move, so the contract should define the target date, any grace period and the buyer's remedies if delivery is materially delayed. See our off-plan delays and cancelling off-plan guides.
Where the delivery date is missed, the buyer's position depends on:
- The contract — the specified delivery date, any grace period, remedy provisions and termination triggers.
- Spanish consumer-protection law — statutory rights that supplement the contract.
- The advance-payment protection arrangement — whether the specific situation gives rise to a repayment obligation covered by the arrangement.
- The buyer's own preference — waiting for delayed completion or invoking termination and repayment can both be sensible depending on circumstances.
Termination generally requires formal notice and evidence of the breach. Notices done incorrectly can weaken the buyer's position — get advice before serving one.
Snagging & Handover
Before the escritura is signed, you or an appointed snagger should inspect the property for defects. See our snagging guide. Typical items identified:
- Finishing defects — paintwork, tile alignment, misaligned fittings.
- Function defects — doors not closing, taps leaking, sockets not working, HVAC not operating.
- Specification gaps — items in the memoria de calidades not installed or substituted.
- Structural concerns — cracks in walls or ceilings, uneven floors, drainage issues.
- External items — pool, garden, drives, communal areas.
Snagging findings should be documented and given to the developer for remediation before or immediately after escritura. Larger issues can delay handover; smaller items are typically addressed in the weeks after.
Post-Handover Liability Periods
Spanish law (LOE — Ley 38/1999) establishes different liability periods for construction defects:
- 1 year — finishing defects.
- 3 years — habitability defects (making the property unsuitable to live in).
- 10 years — structural defects (affecting the building's stability).
Separate time limits may apply to bringing a claim once the damage becomes apparent, so defects should be reported promptly and in writing when identified. Where the developer is no longer trading, insurance arrangements typically stand behind the guarantees. Legal advice is important where a claim needs to be made — the interaction between the liability period and the limitation period for bringing an action affects how quickly you need to act.
IVA, AJD & Costs
New-build purchases attract IVA + AJD, not ITP:
- IVA at 10% on residential new-builds.
- AJD at 0.5–2% depending on region.
- Notary fees (regulated tariff, roughly 0.1–0.5% of price).
- Land Registry (regulated tariff, roughly 0.1–0.4% of price).
- Legal-support fees — quoted based on the transaction, with written quotation before engagement.
- Mortgage-related buyer costs where borrowing.
See our full cost guide and ITP vs IVA/AJD.
Risks to Understand
Off-plan carries risks not present in resale. Understanding them upfront helps you evaluate whether the trade-off suits your circumstances:
Developer default
The developer fails to deliver — insolvency, abandonment, licence issues. The advance-payment protection arrangement is designed to address this in the terms and conditions foreseen in the applicable law.
Delivery delay
Construction programmes can move. The contract should define the target date, any grace period and the buyer's remedies where delivery is materially delayed.
Specification changes
Developer substitutes materials or downgrades finishes. The memoria de calidades is your reference point.
Planning or licence issues
Property built without correct licences, or with issues that block CFO/LPO issuance. Pre-purchase due diligence identifies risk upfront.
Market movement
By the time completion arrives, the property may be worth more or less than the purchase price. Market movement is not legally protected.
Mortgage availability
Bank criteria and appetite change over 18–36 months. A mortgage indication issued at reservation is not guaranteed to remain valid until completion. Plan financing carefully and reconfirm as delivery approaches.
Completed New-Build
Buying a completed new-build (obra terminada) is simpler than off-plan:
- Sale is single-stage — deposit, then escritura within weeks or months.
- No staged payments, no lengthy protection arrangement to maintain.
- Property is inspectable before you commit — you can see what you're buying.
- CFO and LPO / cédula (where required) should already be in place — check.
- Tax is still IVA + AJD (as new-build).
- Statutory LOE liability periods run from occupation.
See our new-build guide and resale vs new-build comparison.
Our Support
Platinum Legal Spain provides English-speaking coordination for off-plan and new-build purchases:
- Developer and scheme background review.
- Reservation contract review — refundability terms, negotiation points.
- Private purchase contract review — terms explained, negotiation points identified.
- Verification of advance-payment protection arrangements at each staged payment.
- Staged payment tracking and IVA reconciliation.
- Coordination if delay or delivery issues arise.
- Snagging coordination pre-handover.
- Escritura and post-handover Land Registry, tax and community-of-owners setup.
- Guidance on LOE defect claims in the 1/3/10-year windows.
Because off-plan work is staged over 18–36 months and involves more moving parts than resale, fees are quoted individually per scheme. You'll receive a written quotation before engagement. Book a consultation.
Related Guides
Frequently Asked Questions
Typically 18–36 months from private contract to escritura, depending on the scheme's build stage at your entry. Buying at the start of a scheme (before ground-breaking) can extend further; buying late in a build when structural works are done can be shorter. Construction programmes can move — the contract should define the target date, any grace period and the buyer's remedies where delivery is materially delayed. Completed new-builds run to escritura within weeks or a few months of contract, similar to a resale.
This is why advance-payment protection matters. Advance payments made toward the purchase of a home should be paid into a designated special account and protected by a bank guarantee or insurance arrangement in the terms and conditions foreseen in the applicable law. If a developer refuses or fails to arrange proper protection, that is a significant issue to address before making further payments. Where a valid arrangement is in place, it is designed to allow recovery in the covered circumstances; recovery in the absence of a valid arrangement typically requires action through the insolvency process, which is slower and more uncertain.
The answer depends on the contract, Spanish consumer-protection law and the specific circumstances. The mechanic is generally: identify the breach against the contract, allow any contractual cure period, and then serve formal notice invoking the applicable remedy. Whether the advance-payment protection arrangement responds depends on whether the specific situation gives rise to a covered repayment obligation. Get legal advice before serving notice — a notice done incorrectly can weaken your position. Sometimes structured negotiation for compensation and a firmer new delivery date is the better outcome.
New-build (off-plan or completed) attracts IVA (VAT) at 10% on residential and AJD stamp duty at 0.5–2% depending on region. IVA is charged on each staged payment as it's paid; AJD is triggered at the escritura on the full purchase price. Notary, Land Registry and legal-support fees add further cost. Budget around 13–15% on top of the headline price for typical new-builds.
Off-plan means committing to buy while the property is still being built — reservation, private contract, staged payments, snagging, escritura at handover, typically 18–36 months. Completed new-build means the developer has finished (or is close to finishing) and you buy in essentially the same format as a resale, faster and with less delivery risk. Tax treatment is the same (IVA + AJD). Developers may offer earlier-phase pricing on off-plan, but off-plan property is not automatically cheaper than the completed market value.
Not for the payments themselves — those are made by bank transfer. But the verification of payment protection, IVA invoice checks, and coordination with the developer typically need someone in Spain. Most off-plan buyers use an English-speaking legal-support service plus a power-of-attorney route arranged with an appropriate Spanish professional to handle all in-country steps, meaning they never need to travel during the build. Buyers commonly travel for viewings during construction and for handover snagging.
Spanish law (LOE — Ley 38/1999) establishes different liability periods for construction defects: 1 year for finishing, 3 years for habitability and 10 years for structural. Separate time limits may apply to bringing a claim once the damage becomes apparent, so defects should be reported promptly and in writing when identified. Where the developer is no longer trading, insurance arrangements typically stand behind the guarantees. Legal advice is important where a claim needs to be made.
Off-plan work is staged over 18–36 months and involves more moving parts than resale, so fees are quoted individually per scheme. You'll receive a written quotation before engagement. At consultation we scope the transaction and set out the scope of support, the fee for the core engagement, additional-cost items where applicable, and the payment schedule.