Buying off-plan in Spain: how your money is protected
Short answer: Under Spain's Building Act (Law 38/1999, LOE, first additional provision, as amended by Law 20/2015) a developer must guarantee every amount paid before completion with a bank guarantee or an insurance policy, paid into a special account. New builds also carry a 10-year warranty for structural defects, 3 years for habitability defects and 1 year for finishing defects (LOE, article 17).
Stage payments are guaranteed
For each payment you make during construction, ask for the individual bank guarantee (aval) or insurance certificate in your name. Your lawyer should check it before every transfer.
Special account
Stage payments must go into a special account of the developer that is only used for the construction.
Warranties after handover
10 years for structural elements, 3 years for habitability (damp, insulation, installations) and 1 year for finishing defects. Do a snagging inspection before signing the deed.
Golden visa ended
Since 3 April 2025 Spain no longer grants investor ("golden") visas for buying property (Organic Law 1/2025). UK and other non-EU buyers can stay 90 days in any 180 as visitors, or apply for a residence visa such as the non-lucrative visa.
General information, not legal or tax advice. Always confirm with your lawyer or notary.