Off-Plan & New Build
Projects in Spain

Deposit requirements vary by developer, but most Costa del Sol off-plan developments require a reservation fee of around €6,000-€12,000, followed by a stage payment of 20-30% within 30 days of signing the purchase contract. The remaining balance (typically 70-80%) is paid on completion. Some developments offer staged payment plans spread across the construction period.

Yes, foreigners can freely purchase property in Spain, including off-plan projects. You will need a Spanish NIE number (Tax Identification Number for Foreigners), which our team can help you obtain. Non-residents can also apply for Spanish mortgages, typically borrowing up to 60-70% of the purchase price. A Spanish bank account is also recommended.

When buying a new-build or off-plan property, VAT (IVA) of 10% applies (compared to Transfer Tax on resales). You will also pay stamp duty (AJD) of approximately 1.5%, plus notary and registry fees. Solicitor fees typically run 1-1.5% of the purchase price. In total, allow for 12-14% on top of the purchase price to cover all taxes and fees.

Spanish law provides strong protections for off-plan buyers. Developers are legally required to hold your deposit in a separate bank account and to provide a bank guarantee or insurance policy covering your stage payments. If the developer fails to complete on time or at all, you are entitled to a full refund of your payments plus interest. Always use an independent solicitor to verify these protections are in place.

Marbella and its surrounding areas (Benahavís, Estepona, Nueva Andalucía) remain the most sought-after locations, with Marbella's Golden Mile and the El Campanario/Valle Romano corridor in Estepona being particularly strong investment areas. Sotogrande offers a more exclusive, quieter alternative. For better value with strong growth potential, Casares, Manilva, and the emerging western Costa del Sol are attracting significant interest.

Construction timelines vary, but most off-plan developments on the Costa del Sol take 18 to 36 months from the start of construction to completion. Some premium projects can take longer. Developers typically publish a completion quarter (e.g. Q3 2026) rather than a specific date. It's important to build some flexibility into your planning, as construction delays of 6-12 months are not uncommon.

You cannot rent out the property until it is completed and you have received the keys. However, once you receive the tourist licence (Licencia de Alquiler Turístico) after completion, you can put the property into a short-term rental programme. The Costa del Sol's strong year-round tourism makes this an attractive income-generating option, with premium developments often achieving gross rental yields of 5-8%.