by Buying off-plan on the Costa del Sol is a normal transaction with unusual risk, because you are paying for something that does not exist yet. The risk is not that developers are dishonest. It is that buyers sign a reservation without asking seven questions that have clear answers — and that the answers are only easy to get before the deposit leaves your account.
1. Is there a building licence?
Not a project, not a render, not a planning permission in principle — a licencia de obra for the specific development. Ask for the number and the date. A developer who cannot produce it on request is asking you to fund the paperwork.
2. How is your money protected?
Under Spanish law, payments made before completion must be covered by a bank guarantee or insurance, so that the money returns if the development is never finished. Ask which institution issues it, and get the document — not a paragraph in the contract that says it exists.
3. What is the payment schedule, exactly?
Reservation, contract, and then staged payments during construction, with the balance at notary. Write the dates and percentages into the contract. If a developer asks for 50% before the structure is up, that is a negotiating position, not a law of nature.
4. What happens if completion is late?
Contracts include a delivery date, and many include a penalty clause. Check whether the penalty is meaningful, and whether there is a long-stop date after which you can walk away with your money. A date without a consequence is a wish.
5. What is included, line by line?
Kitchen appliances, air conditioning, underfloor heating, parking, storage, landscaping, and the pool if there is one. The difference between two developments that look identical in a brochure is often €40,000 of extras listed as “optional”.
6. What will it cost to own?
Community fees, property tax, rubbish collection and insurance. Ask the developer or the community administrator for the current annual figures in comparable developments, not a projection. On a resort-style complex with pools, gardens and 24-hour security, these numbers are not small.
7. Who checks the build before you sign at the notary?
Hire an independent inspector for the snagging — the list of defects to be fixed before final acceptance. It is a small cost against a large one, and developers expect it.
What this looks like in practice
None of these checks are exotic. They are the standard questions a good lawyer asks in the first meeting. The problem is that buyers often ask them after signing the reservation, when the answer no longer changes anything.
Two habits make the difference. First, ask for documents rather than assurances — licence, guarantee, price list, community budget. Second, keep the reservation period long enough to have your lawyer read the contract before any further payment. A reservation fee that is only refundable for 24 hours is not a reservation, it is a countdown.
Frequently asked questions
How much is the deposit on an off-plan property in Spain?
Reservation fees are typically small and separate from the contract deposit, which is usually a percentage of the price paid on signing. The exact structure is negotiated per development and should be written into the contract.
Can I get my money back if I change my mind?
Only if the contract says so. Spanish off-plan contracts are not consumer contracts with a cooling-off period in the way buyers from northern Europe often assume — the terms you sign are the terms that apply.
Is off-plan cheaper than key-ready?
Usually, because you are taking on construction risk and waiting. Whether the discount compensates for the wait depends on the development and on how prices move in that area meanwhile.
This article is general information, not legal or tax advice. Rates, guarantees and contract terms should be confirmed with an independent Spanish lawyer before you commit to any purchase.
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