Buying off-plan property in Spain: Complete guide for UK buyers

Dreaming of a holiday home in the Spanish sunshine? Or perhaps you’re one of the thousands of British expats moving to Spain, for work, retirement or to start a business.

One option to consider if you’re property hunting in Spain is buying off-plan. But how does it work, is it worth it, and are there any risks to consider?

Find out everything you need to know below, in this complete guide to buying off-plan property in Spain. This includes a step-by-step guide to the purchase process, fees, pitfalls to avoid and much more.

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How off-plan sales work in Spain

First of all, what is off plan property? This is where you enter an agreement to buy a property before it’s built, sometimes before construction work has even started.

You’ll make the decision to purchase based on architectural blueprints, floor plans and computer-generated 3D images of what the final property will look like. In some cases, there’ll be a show home available for you to visit.

In Spain, off-plan (sobre plano) property sales are covered by legal protection, specifically in relation to deposit payments made to developers. By law, they must provide you with either a bank guarantee (aval bancario) or surety insurance - this protects your deposits if the project is delayed, abandoned or the developer goes bust.¹

You’ll pay to reserve a property, then make regular payments in instalments as construction hits key milestones - all according to the contract you sign.

Once the property is built and all payments made, the property is handed over to you. In some cases, you may get to customise parts of the property, such as finishing materials, flooring or layout.

Can foreigners buy off-plan in Spain?

Yes, foreigners can freely buy property in Spain, whether it’s off-plan or ready built apartments or houses.

All you’ll need is a foreigner’s tax ID number (Número de Identificación de Extranjero or NIE), valid ID and the funds or finance to support your purchase.

Why buy off-plan in Spain?

There are a number of benefits of buying off-plan property in Spain, but there are also plenty of disadvantages and risks to bear in mind.

Let’s take a look at the main pros and cons of off-plan Spain property.

Pros:²

• Potential to get a lower price than buying a ready built property at market price, especially if you commit early
• Flexible payment plans - with the option to spread payments out rather than committing large sums upfront
• Customisation possible - you may get to choose some finishes, materials and fixtures, so you can tailor the property to your tastes
• Legal protection for deposits
• Potential for capital appreciation, as values often increase once developments are completed - so could be a good investment if chosen carefully
• Modern, energy-efficient features - off-plan properties in Spain are known for their contemporary design and high energy efficiency standards.

Cons:²

• You may need to wait up to 3 years to move in, until the property is built³
• Construction delays are very common, so you may be waiting even longer
• Developer insolvency is a real risk, which is why it’s so crucial to get a valid bank guarantee covering 100% of your payments
• No rental income (if you’re planning to let the property out) during construction
• Mortgages from Spanish banks only tend to release funds on handover, so you’ll need to cover most instalment payments yourself³
• If local property values drop before completion, your property’s market value may fall below purchase projections
• The final build quality may not be up to the standard promised in marketing brochures - extensive snagging work may be required

This is general market information only and not financial or investment advice. Consult a qualified financial advisor before making decisions.

How to buy off-plan property in Spain - step-by-step

Now, let’s take a look at the process for buying an off-plan home in Spain, so you know what to expect:

1: Set your budget and define what you’re looking for

Before you start your search, you need to clarify exactly what you’re looking for and how much you can afford to spend - making sure to factor in all costs and fees.

Remember that you’ll need to be able to fund or finance the full cost of the purchase spread over instalments, and it’s not just the first deposit you need to be able to afford.

You’ll need to get your financing sorted, whether you’re moving funds from the UK or getting a local mortgage.

2: Get your NIE and other documents

To buy property in Spain as a foreigner, you’ll need an NIE. This stands for Número de Identificación de Extranjeros, and it’s a Spanish tax ID number.

You can get this by visiting a Spanish police station and presenting your passport, or you can apply at a Spanish Consulate if you’re still in the UK.

You’ll also need to get other paperwork ready, such as valid ID and proof of the source of funds (such as bank statements)

At this stage, you might want to consider opening a local bank account, or an international account for holding euros (EUR) - such as the Wise account.

3: Find a solicitor

While it’s not mandatory to have legal representation to buy property in Spain (and some legal work is carried out by a notary), it’s strongly recommended to appoint your own independent solicitor when buying off-plan.

Your Spanish lawyer (abogado) will check every detail of the contract before you sign it, and make sure your deposits are completely protected. They’ll also negotiate on price, verify building licenses and land legality, and ensure the developer's construction contracts and final handover meet all regional legal requirements.⁴

Crucially, they’ll protect your interests throughout the transaction.

A good place to start when looking for a solicitor is this list of English-speaking property solicitors on the UK Government website.

Whoever you appoint, make sure they are registered with the local bar association Colegio de Abogados.

4: Hire an estate agent

It’s not mandatory to use an estate agent - you can simply go directly to the property developer and buy a unit yourself.

But it could be extremely helpful to use a reputable local expert to help you find suitable units, narrow down your options and guide you through the process.

There will be a commission fee to pay for this service.

There are no national licensing requirements for estate agents in Spain, but some autonomous regions such as Valencia and Andalusia now enforce mandatory regional registration laws. So, it’s a good idea to look into this before choosing an agent.

5: Research suitable properties and make a shortlist

It’s crucial to do your homework before committing to buy an off-plan home. Your agent will help you draw up a shortlist of properties that fit your search criteria, and then you can look into:

• Floor plans and layouts
• Technical specifications
• Payment plans
• Developer reputation
• Visiting show homes in person
• Local amenities
• Construction schedules
• Potential return on investment figures.

6: Reserve your off-plan property and sign the contract

If you and your solicitor have done all required research and due diligence, and you’ve chosen an off-plan unit, it’s time to reserve it.

You’ll need to choose a payment plan (if more than one option is available), sign the sales contract and pay an initial reservation deposit. The unit will then be reserved for you and taken off the market. A date will be set for completion.

Remember - make sure to have your solicitor check the contract over before signing.

You should receive your first bank guarantee after paying the deposit (you’ll get one for every subsequent payment you make).⁴

7: Pay the instalments

While construction continues, you’ll need to make instalment payments as set out in your contract. These will be paid into a designated segregated account, and you’ll receive a bank guarantee for each.⁴

8: Property inspection before completion

A crucial step before the property is handed over is the property inspection. It’s strongly recommended to hire a professional third-party inspection company or surveyor to check over the property before the completion date.

This is an opportunity to have faults and snags fixed, while the developer is still responsible for the construction of the property.

9: Completion, handover and move in

As the completion date approaches, your solicitor will ensure the developer has removed any mortgage from the property so the title can be clearly transferred over to you. A completion meeting will be arranged for final legal work and signatures - you’ll also pay any remaining balance on this date.⁴

You’ll pay any relevant taxes, the property will be registered in your name and the developer will officially hand over the property. You’ll get the keys and can move in.

Fees and taxes for buying off-plan property in Spain

Disclaimer: The information in this article is for reference purposes only. All information on this page should not be considered financial or tax advice. You are also solely responsible for calculating and paying your tax liabilities depending on the applicable law. All tax saving strategies or decisions should be made after thorough research and consultation with a qualified financial advisor.

Here are the main fees and taxes you need to know about:⁵

You may also have fees relating to your mortgage, if you’re getting one.

Make your off-plan property budget go further with Wise

Buying off-plan in Spain often means making several payments over the course of the development, from your initial deposit to construction instalments and the final balance. If you're funding the purchase from the UK, you'll also need to consider the cost of converting pounds to euros each time you send money.

With potentially large sums involved, keeping currency conversion and transfer costs down can help more of your property budget go towards the purchase itself.

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Tips for buying off-plan property in Spain

• Hiring an independent local solicitor is essential for protecting yourself
• Verify the developer has a valid building license (licencia de obras) and planning permission for the project before signing a contract or making any payments
• Make sure you get an individual bank guarantee for every deposit or payment you make - this must be specific to you and the project, not generic
• Make sure to factor in taxes and stamp duty into your budget, as well as legal fees
• Expect delays - whatever completion date you’re told, plan for at least 6 months longer
• Plan your cash flow carefully, as you may not be able to get a mortgage until the handover date - this means you’re responsible for covering all instalment payments up to then

FAQs on buying off-plan property in Spain

Can I get a mortgage for an off-plan property in Spain?

Yes, but bear in mind that most mortgage lenders won’t release funds until the property is fully built and handed over.³ This means you’ll need to cover instalment payments yourself, and can only use a mortgage for the remaining balance on completion day.

Bear in mind that you may get less favourable mortgage terms as a foreign or non-resident applicant, so you may not be able to borrow as much or get the most competitive interest rates.

What happens if the off-plan developer goes bust before the property is built?

If an off-plan developer goes bust in Spain, your money is protected by law. You’ll pay all deposits into a segregated account (separate from the developer’s own funds) and they’ll provide you with a bank guarantee.¹

However, it’s crucial to know that this guarantee only comes into force once the developer has planning permission - so always ask to see evidence of this before making any payments.¹

Key takeaways

• Off-plan property in Spain gives UK buyers legal protection under Spanish law, requiring developers to provide a bank guarantee or surety insurance for all deposit payments.
• Buyers must obtain a Spanish tax ID (NIE number) and should hire an independent local solicitor to check building licenses and contracts before paying any money.
• Construction delays of at least 6 months are common, and Spanish bank mortgages usually only release funds upon handover, meaning buyers must fund initial instalments themselves.
• Essential fees typically add roughly 12% to 15% on top of the purchase price, including 10% VAT (IVA), stamp duty, legal costs, and notary fees.

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Sources used:

1. GOV.UK - Spain: buying and renting property
2. Idealista - Buying off-plan in Spain: a complete guide for foreign buyers
3. Omni Real Estate - Buying off-plan property in Spain: 2026 guide
4. Solicitors in Spain - The process of buying an off-plan property in Spain
5. Idealista - Taxes on buying property in Spain
6. New Build Homes Costa Blanca - Snagging Your New Build in Spain: Complete Inspection Guide

Sources last checked: 17-Aug-2026