How much deposit do I need for off-plan property in Spain?
The typical deposit for off-plan property in Spain is 20 to 30 percent of the purchase price, paid at the time of signing the private purchase contract, usually within 30 days of your initial reservation.
- 1Reservation fee is typically 1 to 2 percent or a fixed amount such as 6,000 to 15,000 euros
- 2Main deposit of 20 to 30 percent is paid when the private purchase contract is signed
- 3The balance is paid at the notary on completion day
- 4All stage payments must be protected by a bank guarantee under Spanish law
- 5Reservation fees are typically refundable if the private purchase contract is not agreed within the stated period
Key Takeaways
- Reservation fee: 1 to 2 percent or a fixed sum, paid immediately on reserving
- Private purchase contract deposit: 20 to 30 percent, paid within 30 days
- Construction stage payments: variable, typically 10 to 20 percent total over the build period
- Final balance: paid at the notary on completion day
- All deposits must be protected by a bank guarantee (aval bancario)
When buying off-plan in Spain, you pay in stages rather than all at once. The initial step is a reservation fee, which is typically 1 to 2 percent of the purchase price or a fixed amount such as 6,000 to 15,000 euros. This secures the unit while the private purchase contract is prepared. Within 30 days, you then sign the private purchase contract and pay the main deposit, which is typically 20 to 30 percent of the total price. Some developers structure this as a single payment; others spread it across the first few months of construction. The remaining balance, including any mortgage, is paid at the notary on completion day.
Stage 1: Reservation fee
When you agree to buy a unit, you pay a reservation fee that takes it off the market while the contracts are prepared. This is usually 1 to 2 percent of the purchase price or a fixed sum between 6,000 and 15,000 euros depending on the developer. This fee is paid immediately by bank transfer. If you proceed to sign the private purchase contract, it is counted toward your total deposit. If the contract cannot be agreed or the developer fails to meet certain conditions, it should be refunded.
Stage 2: Private purchase contract deposit
Within 30 days of reservation, you sign the private purchase contract (contrato de compraventa) and pay the main deposit. This is typically 20 to 30 percent of the purchase price, including the reservation fee already paid. On a 400,000 euro apartment, this means paying around 80,000 to 120,000 euros at this stage. This deposit is non-refundable if you withdraw from the purchase without legal grounds.
Stage 3: Construction payments
Many developments also have one or more interim payments during construction, typically tied to structural milestones such as reaching the roofing stage. These are agreed in the private purchase contract and usually add up to 10 to 20 percent of the price. Not all developers require these; some structure the entire deposit at private purchase contract stage.
Stage 4: Completion payment
On completion day at the Spanish notary, you pay the remaining balance, which is typically 60 to 70 percent of the purchase price plus the purchase taxes and costs. If you are using a mortgage, the mortgage funds are drawn down on this day. The property title deed is signed and registered in your name.
How your deposits are protected
Under Spanish law, all stage payments made before completion must be protected by a bank guarantee (aval bancario) or an insurance policy. This guarantee ensures that if the developer cannot complete and hand over the property, all your deposits are returned in full with interest. Always verify with your lawyer that the guarantee is in place and covers the full amount paid before signing.
Why This Matters in Costa del Sol
Costa del Sol off-plan deposits typically run at 20 to 30 percent, in line with the national market. Luxury developments above 1 million euros sometimes require higher deposits. Payment schedules are always set out in the private purchase contract, which you review with your lawyer before signing.
Common Mistakes to Avoid
A buyer reserves a villa in Benahavis at 850,000 euros. They pay a reservation fee of 10,000 euros immediately. Within 30 days, they sign the private purchase contract and pay a further 200,000 euros (bringing their total deposit to 210,000 euros). During construction over 24 months, they pay a further 50,000 euros in staged payments. At the notary, they pay the remaining 590,000 euros plus taxes.
Legal Note: The bank guarantee is a legal right of the buyer under Spanish law. If the developer does not provide one, you are not protected. Do not transfer funds without it being in place.
Off-plan property refers to a residential or commercial property that is purchased before construction is complete. The buyer agrees to purchase based on architectural plans, CGIs, show apartments and a specification document rather than a completed building. Payment is typically made in stages tied to construction milestones.
A reservation agreement is a contract signed when a buyer pays an initial holding deposit to secure an off-plan or new build property. It removes the property from sale for a defined period, typically 14 to 30 days, while due diligence is conducted and the main Private Purchase Contract is prepared. The reservation fee is typically 1% to 3% of the purchase price or a fixed amount such as 5,000 to 15,000 euros.
The Private Purchase Contract (Contrato Privado de Compraventa or PPC) is the main legal agreement between a buyer and developer in an off-plan property transaction. It sets out all the terms of the sale including the purchase price, full payment schedule, completion date, property specification, bank guarantee obligations, penalties for delay, and dispute resolution. It is signed after the reservation stage and typically involves payment of 10% to 30% of the purchase price.
A bank guarantee (aval bancario) is a legal commitment from a Spanish bank to refund a buyer's stage payments if the developer fails to complete the property within the agreed timeframe or becomes insolvent. It is a mandatory legal requirement for all off-plan property purchases in Spain under Ley 57/1968 (updated 2015). Bank guarantees should be obtained for each stage payment individually.
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