Off-plan payment plans in Spain explained
Off-plan homes are paid for in stages: a reservation, one or more payments during construction, and the balance at completion. Every payment before completion must be guaranteed, and a mortgage normally only funds the final balance. Here is how the common structures work and what to check.
By Investidad advisory team · Last reviewed 16 Oct 2026
How an off-plan payment plan is built up
When you buy Off-plan, you do not pay the price in one go. The developer sets a schedule, written into the private purchase contract, that usually has three parts: a reservation fee, payments during construction, and the balance when you sign the title deed before a notary. Read the stages together with our overview of the off-plan process.
Spanish law does not fix the percentages: each developer sets its own plan, and it should be set out clearly before you commit. Under Real Decreto 515/1989 the developer must be able to show you the total price, including taxes, and how and when it is to be paid, and anything you pay on account must be deducted from the total price.
Common structures
These are patterns we see often, not legal standards. The euro figures are illustrative, for a home priced at €400,000 before tax, with a €10,000 reservation counted towards the price.
- 30/70
- BEFORE COMPLETIONReservation, then a payment on signing the contract bringing the total to 30%
- AT COMPLETION70%
- ILLUSTRATIVE AMOUNTS€10,000 + €110,000 on contract; €280,000 at the deed
- Staged 10/10/10/70
- BEFORE COMPLETION10% on contract (including the reservation), 10% at a later construction milestone or date, 10% at another
- AT COMPLETION70%
- ILLUSTRATIVE AMOUNTS€40,000 + €40,000 + €40,000; €280,000 at the deed
- Monthly instalments
- BEFORE COMPLETIONA first payment on contract, then fixed monthly sums during construction up to an agreed total
- AT COMPLETIONThe balance
- ILLUSTRATIVE AMOUNTSDepends on the length of construction
- Key-ready or near completion
- BEFORE COMPLETIONReservation and a short period to the deed
- AT COMPLETIONMost or all of the price
- ILLUSTRATIVE AMOUNTSLittle or nothing at risk before completion
| STRUCTURE | BEFORE COMPLETION | AT COMPLETION | ILLUSTRATIVE AMOUNTS |
|---|---|---|---|
| 30/70 | Reservation, then a payment on signing the contract bringing the total to 30% | 70% | €10,000 + €110,000 on contract; €280,000 at the deed |
| Staged 10/10/10/70 | 10% on contract (including the reservation), 10% at a later construction milestone or date, 10% at another | 70% | €40,000 + €40,000 + €40,000; €280,000 at the deed |
| Monthly instalments | A first payment on contract, then fixed monthly sums during construction up to an agreed total | The balance | Depends on the length of construction |
| Key-ready or near completion | Reservation and a short period to the deed | Most or all of the price | Little or nothing at risk before completion |
A plan with more paid up front ties up more of your money for longer and puts more of it in the hands of the developer before the home exists, which is why the guarantee on each payment matters. A Key ready home avoids the construction phase altogether.
Taxes on each payment
IVA (or IGIC in the Canary Islands) is not only paid at the end. Under article 75 of the IVA Act, when a buyer pays in advance, the tax falls due on each amount as it is received, so every stage payment carries IVA on top. AJD is paid later, on the title deed. See costs and taxes of buying a new build for the full picture.
Every payment must be guaranteed
Under the first additional provision of the LOE, a developer that takes money before a home is finished must guarantee its repayment, with legal interest, by an aval bancario or a surety insurance policy, and must receive the money through a special account at a credit institution. The guarantee covers the amounts paid including the taxes on them.
- Pay only into the special account named in the contract, never in cash or to an intermediary.
- Get the guarantee document for each payment, in your name, identifying the home and naming the bank or insurer. The law requires the developer to hand it to you.
- Check that the amounts match: the total guaranteed should keep pace with the total you have paid, IVA included.
- Keep proof of every transfer, with the home and the contract identified in the payment reference.
How the guarantee works in detail is covered in bank guarantees and building warranties.
The mortgage only comes at completion
A Spanish mortgage on a new build is signed together with the title deed, when the home is finished. Stage payments before that normally come from your own funds. Plan for the bank's valuation being made at completion, not when you signed, and for the bank lending a percentage of that valuation. Read financing off-plan property before choosing a plan with a large balance at the end.
Questions buyers ask
- Is a 30/70 plan better than a staged plan?
- Neither is better in itself. What matters is that every payment before completion is guaranteed, that you can fund the stages from your own money, and that you can finance or pay the balance at completion.
- Do I pay IVA on the reservation and stage payments?
- IVA falls due on advance payments as they are received, so stage payments carry IVA. Ask the developer to show IVA separately on each invoice, and check how the reservation is treated in your contract.
- Can I use a mortgage for the stage payments?
- Usually not. Spanish banks lend on the finished home at the title deed. Stage payments during construction normally come from your own funds.
