Buying off-plan new-build on the Costa del Sol in 2026
TL;DR — Buying off-plan new-build on the Costa del Sol
- Buying off-plan means purchasing a home before (or during) its construction, paying in stages until you receive the keys.
- Advantages: lower launch price, staged payments, customisable finishes, top energy efficiency and strong legal guarantees.
- Typical payment schedule: reservation (€6,000–€10,000), 20–40% during construction and the remaining 60–80% on completion, usually via a mortgage.
- Key protection: Spanish building law requires the developer to guarantee every off-plan payment you make with a bank guarantee or insurance policy. It’s the first thing you should verify.
- Taxation: 10% VAT + 1.2% Stamp Duty (AJD) in Andalusia (11.2% in taxes). Budget an extra 12–14% on top of the price for all costs.
What buying off-plan new-build actually means
Buying off-plan means acquiring a home before it’s finished —sometimes before construction has even started— directly from the developer. Instead of paying the full price in a single transaction, you pay a reservation deposit, a series of staged payments during construction, and the bulk of the amount on completion, usually with the help of a mortgage.
It’s worth distinguishing three situations that are often confused:
- Off-plan: you buy from plans, renders and a specifications schedule. The earliest entry point, the most scope for customisation and the longest wait.
- Under construction: the build has progressed and you can visit the actual state of the building or a show home. Less uncertainty, slightly less scope for customisation.
- Key-ready (completed new-build): the home is finished and ready to complete on. No wait, but the price already reflects all the appreciation from the construction period.
This article focuses on the first two, where most of the opportunity lies —and where you need to be most rigorous about guarantees. If what you want is the general process for buying any property, we recommend starting with our complete guide to buying property on the Costa del Sol.
Advantages of buying off-plan new-build
- Lower launch price: developers usually release the first units at a price below what they’ll command once the build is complete. Buyers who enter early can capture part of that difference.
- Staged payments: spreading the outlay over 18–30 months makes financial planning easier and gives you time to arrange the mortgage for completion.
- Customisation: if you buy in the early phases, many developers let you choose finishes, kitchen layout, flooring or bathroom fittings.
- Energy efficiency: new-build is constructed under the current Spanish Building Code (CTE), with aerothermal heating, high-quality insulation and A or B energy ratings. This cuts bills and increases appeal to international tenants.
- Legal guarantees: a ten-year structural warranty and a guarantee on the amounts paid on account (covered below).
- Lower maintenance and modern communal areas: gyms, spas, coworking spaces, sky pools and home automation are now standard in the mid-to-upper segment of the Costa del Sol.
Risks and how to mitigate them
Buying something that doesn’t yet exist calls for caution. These are the real risks and how to neutralise them:
| Risk | How to mitigate it |
|---|---|
| Delayed completion | Require a completion date and penalties for delay in writing in the contract. |
| The finished product differs from the render | Detailed, binding specifications schedule; visit a show home or the developer’s previous projects. |
| Developer insolvency | Verify the bank guarantee on the off-plan payments and the developer’s track record before paying. |
| Market shift during construction | Buy in areas with solid demand and don’t over-leverage; leave a margin. |
| Need for liquidity before the mortgage | Payments during construction come from your own savings: the mortgage is normally signed on completion, not before. |
The golden rule: no render, no discount and no sense of urgency justifies skipping verification of the bank guarantee and review of the contract by an independent lawyer —not the developer’s lawyer.
The process step by step
Buying off-plan in Spain follows a fairly standardised sequence. These are the six phases, from reservation to keys:
- Reserve the property. You sign a reservation document and pay a deposit (typically €6,000–€10,000) that takes the unit off the market and fixes the price. That amount is deducted from the total.
- Private purchase contract. In the following weeks you sign the contract, setting out price, payment schedule, specifications, completion date and penalties. Review by your lawyer is essential here.
- Staged payments during construction. You pay the agreed instalments (construction milestones or fixed dates) until you reach the percentage agreed before completion. Each payment on account carries its corresponding VAT.
- Construction monitoring and guarantee checks. You confirm that every amount paid is covered by a bank guarantee or insurance and that the build is progressing on schedule.
- Handover: snagging and First Occupation Licence. Before accepting the keys, you carry out a snagging inspection (defects list) and verify that the Final Works Certificate and First Occupation Licence exist.
- Title deed before a notary and Land Registry entry. You sign the public title deed, pay the remaining balance (normally with the mortgage), settle the taxes and register the home in your name at the Land Registry.
Payment schedule: how it works
There’s no single schedule: each developer sets its own. Even so, the most common model on the Costa del Sol allocates 30–40% during construction and leaves 60–70% for completion. A representative example on a €350,000 home (30/70 model):
| Phase | % of price | Amount (on €350,000) | Source of funds |
|---|---|---|---|
| Reservation | ~3% | €10,000 | Own savings |
| Contract + construction instalments | ~27% | €95,000 | Own savings |
| Completion / title deed | ~70% | €245,000 | Mortgage (typical) |
| Total price | 100% | €350,000 | — |
An important nuance many buyers overlook: the 10% VAT is charged on each payment on account, not just at the title-deed stage. In other words, every time you pay a developer instalment, that instalment includes its VAT. Stamp Duty (AJD), by contrast, is settled at the moment of signing the title deed. To understand the full tax picture, see our guide on taxes when buying property in Andalusia.
The legal guarantees that protect you
This is the most important section of the article, because it’s what separates a safe off-plan purchase from a risky one. In Spain, buying a home under construction is backed by several legal guarantees:
1. Bank guarantee or insurance on off-plan payments
Spanish building law requires the developer to guarantee every amount you pay on account through a bank guarantee or insurance policy, and to deposit it in a separate, dedicated account. If the build isn’t delivered or the developer defaults, you recover your money plus statutory interest. Before paying the reservation deposit, ask to see the document proving this guarantee. If the developer can’t show it, don’t pay.
2. Ten-year structural warranty and defect guarantees
New-build comes with a tiered system of guarantees against construction defects: 10 years for structural damage (the structural warranty, or seguro decenal), 3 years for defects affecting habitability and 1 year for finishes. These guarantees stay with the home and are enforceable against the developer and the building professionals involved.
3. First Occupation Licence and Final Works Certificate
Before handover, the Final Works Certificate (signed by the architect and technical architect) and the First Occupation Licence —which certifies that the home complies with the approved project and is habitable— must exist. Without these documents, don’t accept the keys or sign the title deed.
To this you should add the Energy Performance Certificate (EPC) and, depending on the municipality, the habitation certificate. A specialist lawyer will verify that all this documentation is in order at the time of handover.
Taxation of new-build: VAT and Stamp Duty
Unlike resale property (which is taxed via Transfer Tax, ITP), new-build bought from the developer is taxed via VAT plus Stamp Duty (AJD):
| Concept | Rate in Andalusia | On €350,000 |
|---|---|---|
| VAT (residential) | 10% (4% for VPO officially protected housing, special regime) | €35,000 |
| Stamp Duty (AJD) | 1.2% (reduced 0.3% for primary residence of buyers under 35 or large families) | €4,200 |
| Total taxes | 11.2% | €39,200 |
On top of taxes you have notary fees (0.5–1%), Land Registry (0.2–0.5%), administrative agent or gestoría (€300–€600) and lawyer (around 1%). All in, for new-build you should budget an extra 12–14% on top of the property price. Rates can change: always confirm the rate in force with your advisor or with the Andalusian Tax Agency (the tax is settled via form 600, modelo 600).
If you’re a non-resident buyer, the purchase taxation is the same, but it differs for rental income (taxed at 19% for EU residents or 24% for non-EU on income) and on any future sale. We cover this in the tax guide linked above.
How to choose a good developer: a due diligence checklist
The quality and solvency of the developer is the factor that most influences whether your off-plan purchase goes well. Before signing, verify:
- Developer track record: previous projects delivered, deadlines met and reviews from earlier buyers.
- Building licence granted (not merely applied for) by the town hall.
- Bank guarantee on the amounts paid on account, verified through documentation.
- Land Registry extract (nota simple) for the plot to confirm it’s free of charges.
- Written, detailed and binding specifications schedule.
- Completion date with penalties for delay set out in the contract.
- Review by an independent lawyer before any signing.
New-build on the Costa del Sol right now: real examples
The Costa del Sol is in one of its most active new-build cycles, especially along the Fuengirola–Mijas–Marbella corridor. Here are some examples of quality developments in our portfolio, by area:
Fuengirola and El Higuerón
- Astra Homes Fuengirola — luxury apartments with a sky pool and sea views.
- The Kos, Higuerón — luxury sky villas in one of Fuengirola’s most sought-after areas.
More options in the area: buy property in Fuengirola.
Mijas Costa, La Cala and El Chaparral
- Korall Residences, El Chaparral — luxury sky villas in Mijas Costa.
- Residencial Balance, Mijas Costa — exclusive new-build home.
- Calanova Golf, La Cala de Mijas — luxury penthouse with golf course views.
- Myramar Costa Phase 2 — apartment with a private garden (a penthouse with a large terrace is also available).
More options in buy property in Mijas. This area also features among the micro-locations with the highest potential in our analysis of emerging areas on the Costa del Sol.
Marbella
- Soleil Marbella — exclusive new-build 2 and 3-bedroom apartments.
Browse the full catalogue in properties for sale or, if you’re looking for returns, in our investments section.
New-build or resale?
There’s no universal answer; it depends on your horizon, your liquidity and your priorities. A quick summary:
| Factor | Off-plan new-build | Resale |
|---|---|---|
| Taxes | 10% VAT + 1.2% AJD (11.2%) | 7% Transfer Tax (ITP) in Andalusia |
| Availability | 12–30 month wait | Immediate |
| Energy efficiency | Very high (A/B) | Variable, often low |
| Customisation | High if you buy early | Requires renovation |
| Initial maintenance | Minimal | Possible renovations |
| Negotiating room | Limited (developer price) | Greater (private seller) |
New-build pays more direct taxes, but offsets this with lower maintenance costs, energy efficiency and guarantees. Resale lets you negotiate and move in immediately, at the cost of possible renovations. If you’re weighing up specific areas for either option, our analysis of the best areas to invest in Málaga in 2026 will help.
Financing your new-build
With an off-plan purchase, the payments during construction normally come from your own savings, and the mortgage is signed on completion, when the home already exists and can be valued and registered. It’s wise to have financing pre-approved well in advance so you don’t reach the title-deed stage in a rush. Banks in Spain typically finance 70–80% of the valuation for residents, with somewhat different conditions for non-residents.
To secure the best conditions and understand concepts such as the FEIN (European Standardised Information Sheet) or the choice between a fixed and variable rate, see our guide on how to get the perfect mortgage for your new home. You can also request free mortgage advice from our team.
Conclusion
Buying off-plan new-build on the Costa del Sol can be one of the most rewarding decisions if done methodically: lower entry price, staged payments, energy efficiency and strong legal guarantees. The key is to verify the guarantee on the off-plan payments, insist on a clear contract with deadlines and penalties, and always work with an independent lawyer. With those three pillars in place, the risk drops dramatically and the wait is worth it.
Frequently asked questions
What happens if the developer doesn’t deliver the home on time or goes bankrupt?
If the developer guaranteed the off-plan payments through a bank guarantee or insurance policy (mandatory by law), you recover all the money paid on account plus statutory interest. That’s why it’s essential to verify this guarantee before paying the reservation deposit. The contract should also include penalties for delayed completion.
How much do you pay to reserve an off-plan property?
The reservation deposit is usually between €6,000 and €10,000, depending on the developer and the price of the home. This amount takes the unit off the market, fixes the price and is deducted from the total. From there you sign the contract and the staged payment schedule begins.
What taxes do you pay when buying new-build in Andalusia?
You pay 10% VAT (4% for officially protected housing under the special regime) plus 1.2% Stamp Duty (AJD) in Andalusia, totalling 11.2% in taxes. With notary, Land Registry, administrative agent and lawyer fees, you should budget an extra 12–14% on top of the price.
When is the mortgage signed in an off-plan purchase?
The mortgage is normally formalised on completion, at the title-deed stage, when the home can be valued and registered. The payments made during construction usually come from the buyer’s own savings. It’s advisable to have financing pre-approved in advance.
Can I customise the finishes of an off-plan home?
Yes, if you buy in an early phase of the development. Many developers let you choose flooring, tiling, bathroom fittings, kitchen layout or certain extras. This option narrows as the build progresses, so it’s worth asking about customisation options before signing the contract.
Is buying off-plan new-build on the Costa del Sol a good investment?
It can be, especially when you enter at the launch price in areas with solid demand, since part of the appreciation occurs during construction. That said, there’s no guarantee of appreciation: it depends on how the market, the area and the developer evolve. Past performance does not guarantee future results.
Can a foreign buyer purchase off-plan new-build?
Yes. Any foreigner, resident or not, can buy in Spain. You only need a NIE (Foreigner Identification Number) and a Spanish bank account to make the payments. It’s strongly advisable to have a lawyer review the contract and the development’s documentation.
Thinking about buying new-build on the Costa del Sol?
At SolProp we guide you through the entire off-plan buying process: selecting developments with verified guarantees, reviewing the contract alongside specialist lawyers, coordinating the mortgage and following up until you receive the keys. We work with the best developers along the Fuengirola–Mijas–Marbella corridor.
Questions about a specific development? Email us at info@solprop.es or call +34 602 533 731. We’ll get back to you within 24 hours.
Keep reading
- Complete guide to buying property on the Costa del Sol — step-by-step process.
- Taxes when buying property in Andalusia — VAT, AJD, ITP and costs.
- How to get the perfect mortgage for your new home — financing.
- Emerging areas on the Costa del Sol with reasonable prices — where to look.
- Best areas to invest in Málaga in 2026 — area-by-area analysis.
