Buying Off-Plan in Spain
Buying a property off-plan in Spain can be one of the most strategic decisions for those looking for a modern, customizable home with flexible payment options. However, this type of investment also comes with certain legal and administrative risks that should not be overlooked.
Therefore, if you're thinking about buying off-plan in Spain, it's essential to have the advice of a specialized lawyer who will verify that everything is in order before signing any document or making a payment.
In this article, we explain the key documents your lawyer should review, why they are important, and how to protect your investment from day one.
What does buying off-plan actually mean?
Buying off-plan means purchasing a property before it is built or completed, usually directly from the developer. In return, the buyer can access more competitive prices, choose finishes, and enjoy flexible payment options.
However, there is also greater reliance on the seriousness of the developer and their compliance with project timelines and terms. Therefore, having legal counsel is essential from the very beginning.
Key documents your lawyer should review
In a recent interview with Cristina, a lawyer specializing in urban law and real estate, three essential documents were highlighted that must always be reviewed by your legal team before proceeding with the purchase:
1. Building license (Urban planning license)
This is the permit issued by the Town Hall that authorizes construction of a specific project on a specific plot.
Why is it essential?
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It ensures that the project complies with urban planning regulations.
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It verifies that the developer has official authorization to build the property at that location.
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It protects the buyer from illegal projects or builds on non-urbanizable land.
👉 You can consult the administrative process for granting urban licenses on the official website of the Spanish Government.
2. Developer's special bank account
Every developer must open a special bank account at a registered financial institution in Spain, used exclusively for receiving payments from buyers of the project.
This is a legal requirement that provides transparency and control.
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Funds deposited can only be used for construction of that specific project.
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This measure prevents the developer from using your money for other purposes or parallel projects.
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Your lawyer must ensure that this account exists, is active, and complies with the legal requirements set forth in Law 20/2015 on insurance supervision and solvency.
3. Bank guarantee or surety insurance
One of the most important elements to protect your money is the existence of an individual bank guarantee or surety insurance, issued by the bank or by the insurer appointed by the developer.
This document ensures that:
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If the project is not completed or is halted, the buyer will be able to recover all amounts paid.
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It must cover from the first payment until the handover of the keys.
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Its existence is mandatory by law for any off-plan sale.
Why is having a specialized lawyer so important?
While many international buyers come full of hope and trust, the reality of the Spanish real estate market demands detailed legal oversight. Some developers rigorously follow the rules; others, unfortunately, do not.
A lawyer not only helps you review key documents, but also:
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Reviews the purchase contract and its clauses.
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Ensures that delivery dates, penalties, and conditions are clearly defined.
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Evaluates the developer’s solvency and track record.
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Translates legal documents if you’re unfamiliar with the language.
Having the right legal team makes the difference between a safe investment and a costly mistake.
Practical tips if you're considering buying off-plan in Spain
1. Don’t sign or pay anything without legal advice.
Even if the developer says it’s “standard,” every contract may contain problematic clauses.
2. Request all documents before committing.
License, planning approval, special bank account, individual guarantee… your lawyer should review everything.
3. Research the developer.
Ask for references, review past projects, and confirm whether they’ve had legal issues.
4. Keep all communications and receipts.
Including emails, wire transfers, and signed copies of the contract. Traceability is key.
5. Make sure payments are made exclusively to the special account.
Never transfer funds to personal accounts or entities without justification.
Emotional reflection: building with trust
Buying a home is much more than a financial transaction. It’s the dream of a fresh start, a lifestyle, a promise of the future. When you decide to buy off-plan, you're literally building from scratch, trusting a vision that doesn’t exist yet.
That trust only makes sense when backed by real guarantees. The excitement of choosing materials, watching construction progress, and visualizing your future life should never be tainted by lack of legal protection.
Protect yourself. Be informed. Enjoy the process.
Conclusion
Buying off-plan in Spain remains an attractive opportunity, especially in areas like Marbella, Estepona, or Benahavís, where luxury developments offer design, quality, and long-term value. However, every step must be taken with knowledge and professional advice.
The key is not just to buy beautifully, but to buy wisely.
Frequently Asked Questions (FAQ)
1. Can I finance part of an off-plan purchase?
Yes, but the first €500,000 must be debt-free if you want to apply for a Golden Visa.
2. How long does a new project take to build?
It depends on the developer, but usually ranges from 12 to 24 months.
3. What happens if the developer doesn’t finish the project?
If you have a bank guarantee or surety insurance, you’ll recover your money.
4. Can I resell a property bought off-plan before it’s completed?
Yes, although it depends on the contract and whether assignment is allowed.
5. Are prices better than finished properties?
Generally yes, and they often offer more flexible payment during construction.
