Guide to Buying New Development Property in Spain

Buying a newly built or off-plan property in Spain is fundamentally different from purchasing a resale home. The process, the protections, the tax structure, and the payment timeline all work differently. For many buyers — particularly those investing on the Costa del Sol — new developments represent the most attractive entry point into the market. This guide explains exactly how it works.

What Does Off-Plan Actually Mean?

Off-plan purchasing means buying a property before it has been built, or while construction is still underway. You are essentially committing to a property based on architectural plans, renders, show apartments, and the developer's specifications. The appeal is straightforward: you buy at today's prices and, by the time the property is completed 18 to 36 months later, its market value has typically appreciated — sometimes significantly.

New construction that is already completed but not yet sold follows a similar process, though without the waiting period. In both cases, you are buying directly from the developer rather than from a private individual.

Advantages of Buying New

• Developer pricing: Launch prices for new phases are often below eventual market value, rewarding early buyers.
• Modern design and efficiency: New developments feature contemporary architecture, open-plan layouts, high-quality insulation, and energy-efficient systems that older properties simply cannot match.
• Customisation: Many developers allow buyers to select finishes, materials, and sometimes even modify layouts during the construction phase.
• Structured payment plans: Rather than paying the full price upfront, you typically pay 30 percent during construction and the remaining 70 percent upon completion. This allows you to manage cash flow and, in some cases, benefit from price appreciation before the final payment is due.
• Legal protections: Spanish law (Ley 38/1999) mandates that developers provide individual bank guarantees for all deposits paid during construction. If the developer fails to deliver, your money is returned. Additionally, all new buildings must carry a Seguro Decenal — a ten-year structural insurance policy covering fundamental defects.
• Community and amenities: New developments typically include landscaped gardens, swimming pools, gymnasiums, and secure parking as standard.

The Buying Process Step by Step

1. Reservation

Once you have chosen your unit, you sign a reservation agreement and pay a deposit of between 6,000 and 10,000 euros. This takes the property off the market and gives your lawyer time to conduct initial checks. The reservation deposit is typically deducted from the first contract payment.

2. Due Diligence

Your lawyer verifies the developer's credentials, checks the land registry status, confirms that valid building licences are in place, and reviews the bank guarantee arrangements. This phase is essential — never skip it, regardless of how established the developer appears to be.

3. Private Purchase Contract

Within a few weeks of reservation, you sign the private contract (contrato privado) and pay the balance up to approximately 30 percent of the purchase price. This contract sets out the full terms: price, payment schedule, completion date, specifications, and the penalties for delay on either side. The developer must provide you with a copy of the bank guarantee certificate covering your payments.

4. Construction Period

Depending on the project, construction takes anywhere from 12 to 36 months. During this time, you may make additional staged payments as specified in the contract. The developer will provide periodic updates on progress, and you can typically visit the site at agreed intervals.

5. Snagging Inspection

Before signing the final deed, you have the right to inspect the finished property and compile a snagging list (lista de repasos) — a record of any defects, unfinished work, or items that do not match the agreed specifications. The developer is obligated to resolve all snagging items before or shortly after handover.

6. Public Deed and Key Handover

The final step is signing the public deed (escritura) at the notary and paying the remaining 70 percent of the purchase price. You receive your keys and become the registered owner.

Tax Differences: New Build vs Resale

The tax treatment of new construction differs from resale purchases, and this is an important consideration for your budgeting.

While new builds carry a higher tax rate, the overall value proposition — modern construction, energy efficiency, warranty protection, and payment flexibility — often more than compensates for the difference.

What to Verify Before You Commit

Your lawyer should check the following before you sign any contract or transfer any money:

• Developer track record: Have they completed previous projects on time and to standard? Are there complaints or legal disputes?
• Building licence (licencia de obra): Confirm it is valid, current, and covers the specific units being sold.
• Land registry (Registro de la Propiedad): Verify that the developer owns the land and that no charges or encumbrances exist.
• Bank guarantee certificate: Each buyer should receive an individual guarantee covering every payment made during construction.
• Construction timeline and penalties: The contract should specify a completion date and clearly outline the consequences if the developer misses it.
• Specifications and materials: Get detailed lists of finishes, appliances, and construction standards in writing.

Explore New Developments with Spanish Riviera

We currently have access to 226 new developments across the Costa del Sol, including 67 projects in Estepona and 35 in Marbella. Whether you are looking for a two-bedroom apartment as a rental investment or a luxury penthouse for personal use, we can guide you through the options and handle every step of the purchase process.

When you work with Spanish Riviera, you work directly with founder Elad Alon — not a call centre, not a junior agent. Elad has been on the ground on the Costa del Sol since 2016 with dozens of closed transactions across apartments, penthouses, commercial properties, and construction land. He personally walks you through every stage: from the first exploratory call through property selection, reservation, due diligence, notary signing, and key handover. After purchase, we handle property management, rental setup, utilities, and ongoing administration so you never have to navigate it alone.

Browse our Estepona properties or Marbella properties to see what is currently available.