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Buying off-plan in Spain: payments, bank guarantees and warranties

Buying off-plan in Spain: payments, bank guarantees and warranties

Published 22 October 2026 · 5 min read

Buying before a building is finished usually means a better choice of units and often a better price. It also means paying part of the price before the home exists, so it is worth understanding how that money is protected.

How payments are usually staged

Every developer sets its own plan, but a common pattern is a reservation deposit to take the unit off the market, a private purchase contract a few weeks later with a larger payment (often 20–30% of the price including the deposit, sometimes split into instalments during construction), and the balance at the notary on completion. VAT is added to each payment.

The bank guarantee on your money

Spanish law requires a developer who takes payments on account before completion to guarantee them — through a bank guarantee or an insurance policy — and to pay them into a special account. If the building is not completed or the licence of first occupation is not obtained in time, you are entitled to recover the amounts paid. Before you sign, your lawyer should receive the individual guarantee certificate for your payments, not just a general statement.

What the warranties cover after the keys

1 year — finishing and workmanship defects, which the builder must put right.
3 years — defects in installations and elements affecting habitability.
10 years — structural defects affecting the foundations, beams, slabs and load-bearing walls, backed by mandatory ten-year insurance.