When do I pay for off-plan property in Spain?
Payments for off-plan property in Spain follow a staged schedule. You pay a small reservation fee upfront, a main deposit at private purchase contract stage, optional construction-stage payments, and the final balance on completion day at the notary.
- 1Payment 1: reservation fee within days of agreeing to buy
- 2Payment 2: 20 to 30 percent deposit at private purchase contract signing (within 30 days)
- 3Payment 3: construction stage payments if included in the schedule
- 4Payment 4: balance plus taxes on completion day at the notary
- 5Each payment must be covered by a bank guarantee under Spanish law
Key Takeaways
- Reservation fee is due immediately on reserving the unit
- Private purchase contract deposit is due within 30 days of reservation
- Construction payments are tied to build milestones as set out in the contract
- Final balance and purchase taxes are paid at the notary on completion day
- All pre-completion payments are protected by a legal bank guarantee requirement
Off-plan purchases in Spain use a staged payment model rather than a single lump sum. This means your financial commitment is spread across the construction period, typically 18 to 30 months on the Costa del Sol. The first payment is the reservation fee, which you pay when you decide to proceed and is usually a few thousand euros or 1 to 2 percent of the price. This secures the unit immediately. Within 30 days, you sign the private purchase contract and pay the main deposit. After that, depending on the developer, there may be one or more payments during construction before the final balance is due at completion.
Reservation fee: day one
As soon as you decide to buy a unit, you pay the reservation fee. This takes the property off the market and gives you time to review the contracts with your lawyer. The fee is usually 1 to 2 percent of the purchase price or a fixed amount between 5,000 and 15,000 euros. It is paid by bank transfer and is applied toward your total deposit when you sign the private purchase contract.
Private purchase contract deposit: within 30 days
Within 30 days of paying the reservation fee, you sign the private purchase contract. At this point you pay the main deposit, bringing your total commitment to around 20 to 30 percent of the purchase price. This contract locks in the price, the unit specification, the expected completion date, and the remaining payment schedule. It is the most important document in the off-plan purchase process.
Construction stage payments: if applicable
Not all developers require interim payments during construction. Some receive the full deposit at private purchase contract stage and then the balance at completion. Others schedule one or two milestone payments, for example when the structure reaches roof level or when interior fit-out begins. These are clearly set out in the private purchase contract and are typically between 5 and 15 percent of the total price each.
Completion payment: at the notary
On the day your property is handed over, you attend the Spanish notary to sign the title deed (escritura). On this day you pay the remaining balance, which is usually 60 to 70 percent of the purchase price. You also pay the purchase taxes, which on a new build are 10 percent VAT and 1.5 percent stamp duty (AJD), plus notary and registry fees. If you have a mortgage, the lender draws down the funds at this stage.
Paying from abroad
Most buyers pay from a Spanish bank account opened specifically for the purchase. Funds are transferred in advance of each payment date. Your lawyer will confirm the exact amount and account details each time. Currency exchange can affect the total cost if you are buying in a non-euro currency, so many buyers use a currency specialist to fix their exchange rate.
Why This Matters in Costa del Sol
The Costa del Sol off-plan market is well established, with clear payment structures used consistently across developers. Most international buyers are familiar with the model, and specialist lawyers handle hundreds of these transactions annually.
Common Mistakes to Avoid
A buyer pays 10,000 euros on the day of reservation for a 500,000 euro apartment. Three weeks later they sign the private purchase contract and pay 115,000 euros, bringing the total to 125,000 euros (25 percent). At roof-level completion 12 months in, they pay a further 50,000 euros. On completion day 18 months after that, they pay the remaining 325,000 euros plus 55,000 in taxes and fees.
Legal Note: Each stage payment is a legally binding commitment. The bank guarantee protects all pre-completion payments. Your lawyer should review the entire payment schedule before you sign the private purchase contract.
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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