Off-plan vs new-build — what the terms mean
Off-plan (sobre plano): you contract to purchase a property that does not yet exist or is under construction. You receive a promotional plan, architectural renders, and a specification document (Memoria de Calidades). The property will be delivered 12-36 months later. You pay a deposit structure during construction, with the balance due at notarial completion.
New-build completed (obra nueva terminada): the developer has completed construction, received the Licencia de Primera Ocupacion (first occupation licence, also called cedula de habitabilidad), and is now selling a finished property. IVA at 10% and AJD at 1.2% still apply (it is the primera transmision, regardless of whether the building is already occupied by the developer). Some developers occupy or stage completed units to allow buyers to inspect — these still classify as new-build primera transmision.
Second-hand (segunda mano / resale): any property that has previously changed ownership outside the developer relationship. ITP 7% applies. Even a 2025-built property resold by its first non-developer owner in 2026 is a resale for ITP purposes.
The practical distinction matters because: (a) tax rates differ (IVA 11.2% vs ITP 7%), and (b) the legal protections — particularly bank guarantee requirements — only apply in the off-plan category.
Bank guarantees — the core legal protection for off-plan buyers
Ley 20/2015 (and its predecessor Ley 57/1968) requires developers selling residential property off-plan to provide an aval bancario (bank guarantee) or insurance policy covering all advance payments made by buyers before completion. The guarantee must be for 100% of all payments received on account (including IVA where applicable).
What the guarantee covers: if the developer fails to complete by the contractual delivery date, or enters insolvency, the buyer can enforce the guarantee and recover 100% of their advance payments plus statutory interest (the legal interest rate, currently approximately 3.25% in Spain).
What the guarantee does NOT cover: the opportunity cost of having your capital tied up; inflation effects on the property you might have bought instead; completion delays that fall short of the legal threshold; or defects in construction quality — those are covered by separate warranty law (Ley de Ordenacion de la Edificacion, decennial guarantees).
How to verify the guarantee: the developer's bank issues the guarantee in the form of a documento aval. Your lawyer should receive and verify the aval before any payment is made. The aval should be individual (per buyer) or individually accessible, not a blanket instrument that requires collective enforcement.
The 2008 crisis lesson: several thousand buyers in Spain between 2005 and 2008 lost deposits on Spanish off-plan properties precisely because blanket or missing avales made individual recovery impossible. The post-crisis legislation strengthens protections, but only if the aval is properly constituted and held by your lawyer before payment.
Payment structure in off-plan contracts
Typical payment schedule for a €3 million off-plan villa in Marbella (indicative, 2026):
-- Reservation deposit: €20,000-€50,000, paid on signing the reservation agreement (contrato de reserva). This is usually non-refundable unless due diligence fails to confirm legal status of the project. -- Contrato de arras or Contrato Privado de Compraventa (CPCV): 10-20% of price (net of reservation, so approximately €250,000-€550,000), paid on signing the private contract. Bank guarantee should be in place and verified before this payment. -- Construction-stage payments: a further 20-30% in tranches tied to construction milestones (foundation complete, structure complete, first floor, roofing). Each stage payment triggers an updated aval or confirmation the tranche is covered by the existing aval. -- Final payment at notarial completion (escritura publica): balance, typically 55-70% of the price, due on the day of signing. IVA and AJD are also due at this point.
Total advance before completion: 30-45% of the purchase price, all of which should be covered by the bank guarantee at all times. Spanish banks have become more rigorous in enforcing this since 2015; developers without institutional backing sometimes struggle to obtain avales, which is itself a due diligence signal.
Developer due diligence — what to check before signing
Six checks your lawyer should confirm before any payment on an off-plan purchase:
1. Licencia de obras (building licence): the project must have a granted building licence from the Ayuntamiento. Projects marketed on the basis of a "licence applied for" or "licence expected" carry planning risk. Verify the licence number and its conditions.
2. Developer's track record: previous developments, delivery history, insolvency events. A developer's first project in Marbella carries more risk than a developer with 10 completed projects. Check the Registro Mercantil for the company's financial history.
3. Bank guarantee (aval): verify the issuing bank, the amount covered, the conditions for enforcement, and whether the guarantee is individual (per buyer) or collective. Your lawyer should hold or have confirmed access to the aval document.
4. Planning conditions on the plot: check the Nota Simple at the Registro de la Propiedad for any urban development conditions, easements, or restrictions on the plot. Some plots in the Estepona/Nueva Andalucia area have PGOU conditions that affect maximum height, footprint, or permitted use that are not obvious from promotional material.
5. Architects and engineers: verify the architects named in the building licence are actually the project architects, and that the technical directors of the build (arquitecto director de obra, aparejador) are registered with their Colegios Profesionales.
6. Community structure (Estatutos de Comunidad): if the development includes shared areas (pool, garden, security), the community statutes should be reviewed. Hidden community service charges and management arrangements are a common post-completion dispute.
Snagging and completion — what to expect
Snagging (or defects list, lista de incidencias): when the developer notifies you that the property is ready for completion (typically via a burofax, formal written notification), your lawyer should arrange a pre-completion inspection with a certified snagging surveyor. In Spain, this is typically an arquitecto tecnico.
The inspection produces a snagging list of defects. Minor defects (cosmetic, incomplete finishes) should be noted but do not normally delay completion. Structural or habitability defects — missing licencia de primera ocupacion, building not connected to water, sewage, or electricity mains — can delay or block the completion signing.
Legal warranty periods under Ley de Ordenacion de la Edificacion (LOE): -- 1 year for finishing defects (cosmetic, equipment failures) -- 3 years for habitability defects (damp, insulation failures, structural systems) -- 10 years for structural defects (foundations, load-bearing elements)
The developer's insurer (seguro decenal) covers the 10-year structural warranty. Verify that the seguro decenal certificate is available before completion.
Delivery delays: if the developer delivers after the contractually agreed date, the buyer may be entitled to penalties (penas conventionales) or, in cases of fundamental breach, to rescind the contract and recover all payments plus interest via the bank guarantee.
The 2026 new-build pipeline — where is off-plan activity concentrated
As of June 2026, the highest-volume off-plan activity on the Costa del Sol is concentrated in three areas:
New Golden Mile (Estepona, Km 150-165): the highest new-build delivery rate on the coast, with multiple villa and apartment complex projects in delivery 2026-2027. Price range: €1.5M-€8M. Strong British, Belgian, and Dutch buyer profile. Coastal Ley conditions particularly relevant here — some projects on the Estepona beachfront are within the 100-metre zona de servidumbre de proteccion.
Nueva Andalucia (Golf Valley): contemporary villa projects adjacent to Los Naranjos, Las Brisas, and Aloha. Higher density of completed new-build than Estepona due to longer development history. Price range: €2M-€12M.
La Zagaleta and Finca Cortesin surrounds (Benahavis): plot developments and private villa projects in the gated estate environment. Lower volume, higher per-unit value. The Finca Cortesin area specifically has several developments at €3M-€12M in the residential precinct of the golf estate.
Active developer caution: the 2024-2026 market has seen smaller developers struggle to obtain bank financing and avales as Spanish banks tighten construction lending criteria. Large-branded developers (Taylor Wimpey Espana, Nvoga, Camacho Marbella, Quercus Real Estate) have structural banking relationships. First-project developers require heightened due diligence.
Frequently asked questions
What taxes apply when buying an off-plan or new-build property in Marbella?
New-build (primera transmision, sold by developer): IVA at 10% plus AJD (stamp duty) at 1.2% in Andalucia, totalling 11.2% of the purchase price. This compares to 7% ITP on secondary-market resale properties. On a €3M new-build, the tax line is €336,000; on an equivalent resale, €210,000.
Is my deposit protected when buying off-plan in Spain?
Yes, by law. Ley 20/2015 requires developers to provide a bank guarantee (aval bancario) covering 100% of all advance payments before completion. The aval must be issued by a Spanish bank or insurer. If the developer fails to complete, you can enforce the aval and recover all deposits plus statutory interest. Verify the aval document before any payment is made.
How long does off-plan development take in Marbella?
Typical off-plan delivery timeline in Marbella: 18-36 months from signing to completion for villa projects; 24-48 months for larger residential complexes. Delays of 6-12 months beyond contractual date are common but not universal. The contract should specify a firm delivery date with penalty clauses for delays.