Buying Guide · 13 min read

Buying Off-Plan Property on the Costa Blanca: The Complete Guide

29 May 2026 · Hansson & Hertzell

Off-plan purchases offer new-build quality, developer pricing, and staged payments — but carry risks that resale properties do not. Here is everything you need to know before signing.

Buying off-plan means purchasing a property that has not yet been built — or is under construction — based on plans, renders, and a show home. You pay a reservation deposit, then staged payments during construction, and the balance on completion when you receive the keys.

On the Costa Blanca, the majority of new residential developments are sold off-plan. Developers in Jávea, Moraira, Benidorm, Torrevieja, and Orihuela Costa sell units before construction begins — sometimes before a single brick is laid. This is standard practice, not unusual.

The Appeal of Off-Plan Buying

Pricing: Off-plan units are typically priced lower than equivalent completed properties. Developers need cash flow during construction and offer early-buyer pricing. As development progresses, prices increase — buyers who purchase at launch often see paper gains by the time construction completes.

New-build quality: Modern specifications — energy-efficient construction (CEE rating), air conditioning pre-installed, underfloor heating options, double glazing, solar panels, private pools, underground parking. No renovation required. No hidden maintenance backlog.

Customisation: Early buyers can often choose finishes — floor tiles, kitchen units, bathroom fittings, and sometimes internal layout changes. This is a significant advantage over resale where you inherit previous owners' choices.

Staged payments: The payment schedule spreads your financial commitment over the construction period — typically 18–36 months. This allows buyers who could not otherwise purchase outright to plan their finances without needing the full amount at once.

Capital appreciation: If the market rises during the construction period (which it has done consistently on the Costa Blanca since 2015), you benefit. Buyers who purchased off-plan in 2021–2022 for delivery in 2023–2024 saw significant gains.

The Risks You Must Understand

Off-plan carries real risks that resale properties do not. Going in eyes open is essential.

Developer insolvency: If the developer runs into financial difficulty and cannot complete the project, you could lose your stage payments. This happened widely in Spain during the 2008–2012 crisis. The laws have changed significantly since — but the risk is not zero.

Construction delays: The contractual completion date is often aspirational. Delays of 6–18 months are common. This affects your personal planning, mortgage commitments, and the costs you bear in the meantime.

What you see is not what you get: Renders and show homes are marketing tools. The finished product may differ in materials, finishes, views (if surrounding buildings are erected), and quality of construction. Visit the actual site and the developer's completed projects before committing.

Market risk: If the market falls during the construction period, you may complete on a property worth less than you paid. This is unlikely given current Costa Blanca dynamics but is a theoretical risk for any asset purchase.

Legal Protections in Spain (Post-2015)

Spanish law was significantly tightened after the 2008 property crisis. Key protections now apply to off-plan purchases:

Bank guarantee: Developers selling off-plan are legally required to hold all stage payments in a ring-fenced account, with a bank guarantee covering the return of all payments if the developer fails to complete or obtain the first occupancy licence (licencia de primera ocupación).

Insurance: Developer's insurance must cover stage payments until completion.

The bank guarantee is only valuable if you actually obtain one: Your lawyer must secure the individual bank guarantee or insurance policy for your specific property. Do not rely on the developer's word that "the guarantees are in place." Insist on the documentation.

Licencia de primera ocupación: The developer must obtain this licence before handing over the keys. This confirms the property is legally habitable and built according to plan. Completion before this licence is granted is illegal and creates serious complications.

How to Assess a Developer

The most important single factor in an off-plan purchase is the developer's track record and financial standing. Assess:

Completed projects: Visit finished developments by the same developer. Speak to owners if possible. Check the quality of construction, communal areas, and whether guarantees were honoured.
Financial standing: A publicly listed developer or one backed by a large bank is lower risk than a small local company. Ask your lawyer to conduct a financial check on the developer (registro mercantil search).
Legal status of the land: The land on which the development is planned should have a building permit in place, or the developer should confirm it is imminent. Building on land without the correct planning permission creates serious problems.
Reputation: Search for news articles, forum posts, and reviews. The Costa Blanca expatriate community is vocal about developer issues.

The Payment Structure

A typical off-plan payment schedule:

Reservation deposit: €3,000–€6,000 to take the unit off the market while contracts are drafted (usually refundable within a short window)
Private purchase contract (contrato privado de compraventa): 10–20% of the purchase price, paid within 2–4 weeks of reservation
Stage payments during construction: 10–30% paid in 1–3 tranches as construction milestones are reached (foundation, structure, roof, completion)
Balance on completion (key handover): The remaining amount (typically 50–70%), paid via your Spanish bank or mortgage at the notary

All stage payments must be covered by the bank guarantee. Keep your payment receipts and guarantee documents safe.

Mortgage Considerations for Off-Plan

Getting a mortgage for an off-plan property is slightly more complex than for a resale. Spanish banks generally:

Require the mortgage offer to be renewed or confirmed closer to completion (original offers often expire)
Lend based on the lower of purchase price or bank valuation (tasación) — valuations at the time of completion may differ from at-purchase
Have different processes for stage payment mortgages (hipoteca autopromotor) versus standard mortgages

If you plan to use a mortgage, confirm with your bank that they will lend on the specific development before you commit. Get this in writing.

The Contract: What to Check

Your Spanish property lawyer must review the purchase contract (contrato privado de compraventa) before you sign. Key clauses to check:

Completion date and penalties for delay: What happens if the developer is late? Is there a compensation clause? Can you exit if delays exceed a certain period?
Force majeure definitions: Overly broad force majeure clauses can excuse developers from almost any delay. Push back on these.
Specification changes: Can the developer change the specification without your consent? There should be a clause protecting you from material changes.
Bank guarantee details: The contract should specify how and when your bank guarantee is provided.
Cancellation rights: Under what circumstances can you cancel, and what happens to your payments?
VAT and tax obligations: New builds attract 10% IVA (VAT) plus 1.5% stamp duty (AJD). Confirm these are specified and who is responsible.

Do not sign anything without your independent lawyer having reviewed it. Developer lawyers work for the developer.

Practical Tips for Off-Plan Buyers

Visit the site before signing: See the actual plot, the views, the surrounding development, and the neighbourhood.
Visit a completed project by the same developer: This is the most reliable quality check available.
Secure the bank guarantee immediately: Do not pay any stage payment without the individual guarantee document in your hands.
Budget for delays: Plan your living arrangements and finances assuming the project is 6–12 months later than stated.
Register your interest early: The best units and prices go first. In popular developments on the Costa Blanca, launches sell out within days.
Use your own lawyer: Never use the developer's recommended solicitor — they represent the developer's interests, not yours.

Frequently Asked Questions

Is buying off-plan in Spain safe?

It can be, with the right precautions. Post-2015 Spanish law requires developers to hold stage payments in a ring-fenced account with bank guarantees. The key is choosing a reputable developer with a track record, using an independent lawyer, and obtaining your individual bank guarantee for every payment.

What is a bank guarantee and why do I need one?

A bank guarantee (aval bancario) is a document from a Spanish bank guaranteeing that your stage payments will be returned if the developer fails to complete the project or obtain the first occupancy licence. You must obtain an individual guarantee for your specific property — a general developer guarantee is not sufficient.

How much deposit do I need for an off-plan property in Spain?

Typically 20–30% during the construction phase, paid in stages. The balance (often 50–70%) is paid on completion. A reservation deposit of €3,000–€6,000 is usually required first. Exact amounts vary by developer and project.

What VAT do I pay on a new-build property in Spain?

New residential properties attract 10% IVA (VAT) plus 1.5% stamp duty (Impuesto de Actos Jurídicos Documentados). This is on top of the purchase price — factor it into your budget. Resale properties do not pay IVA; they pay transfer tax (ITP) instead.

What happens if the developer goes bankrupt before completing my property?

If your bank guarantee is in place (as required by law), you are entitled to a refund of all your stage payments plus interest. The guarantee is only useful if you actually hold the individual guarantee document. This is why your lawyer must secure it for each payment.

How long does it take to complete an off-plan property on the Costa Blanca?

Construction typically takes 18–36 months from the start of building. Many developers begin sales before construction starts, so from purchase to keys can be 24–48 months. Delays of 6–12 months beyond the stated completion date are common.

Can I get a mortgage on an off-plan property in Spain?

Yes, but the process is more complex. You need to confirm in advance that your chosen bank will lend on the specific development. Mortgage offers have expiry dates and may need to be renewed closer to completion. Discuss with your mortgage broker early in the process.

Can I customise the interior of an off-plan property?

Usually yes, especially if you purchase early in the development. Most developers offer a selection of tiles, kitchen cabinets, bathroom fittings, and sometimes internal layout changes. Structural changes are rarely possible. Ask the developer what their customisation policy is before signing.

What is the licencia de primera ocupación and why does it matter?

The first occupancy licence (licencia de primera ocupación) is a document issued by the local municipality confirming the property is legally habitable and built according to the approved plans. Developers must obtain this before handing over keys. Do not accept keys without it — the property is not legally habitable without it.

What if the finished property is different from the plans?

Minor differences are common. Material differences — different room dimensions, missing features, significantly inferior materials — may give you a right to compensation or cancellation under Spanish contract law. Your lawyer should ensure the purchase contract includes a specification protection clause.

Is it better to buy off-plan or resale on the Costa Blanca?

Depends on your priorities. Off-plan offers new-build quality, potential capital appreciation during construction, and staged payments. Resale offers what you see is what you get, faster availability, and sometimes better locations in established areas. Many buyers own both types at different stages of their portfolio.

How do I check a developer's track record?

Visit their completed developments, speak to existing owners, check the registro mercantil (company registry) for financial standing, search for news articles and forum posts about the company, and ask your lawyer to conduct due diligence on the developer entity specifically.

Can I sell an off-plan property before completion?

Sometimes, subject to the developer's consent and the contract terms. Some contracts prohibit onward sales (novaciones) or charge a fee. If the market has risen since you purchased, you may be able to sell your contract at a profit — called a "flip." Ask your lawyer to review the contract's assignment clause.

What costs should I budget for on top of the purchase price?

10% IVA (VAT), 1.5% stamp duty, 1–2% lawyer's fees, notary and land registry fees (€800–€2,000), and furniture/fitting-out costs. Total extra costs are typically 13–15% on top of the purchase price for a new-build.

Does Hansson & Hertzell sell off-plan properties?

Yes. We work with selected developers on the Costa Blanca whose track records we know and whose projects we have assessed. We only introduce clients to developments where we are confident in the developer's standing. Contact us to discuss current off-plan opportunities suited to your requirements.

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