Buying a new-build property in Spain is an exciting step — whether you’re dreaming of a sea-view apartment in La Cala de Mijas, a contemporary townhouse in Calahonda, or a sleek villa in Riviera del Sol. But if you’re coming from another country, the payment process for new developments can seem a little unfamiliar.
In this week’s episode of Two-Minute Tuesdays, Keith explains exactly how it works — in under two minutes.
🏗️ Understanding the Payment Structure
When you buy a new-build (off-plan) property, construction is usually still in progress — so instead of paying the full amount upfront, payments are made in stages as the project develops.
Here’s a simple breakdown of the typical process:
1. Reservation Deposit
Once you’ve chosen your property, you’ll pay a reservation fee — usually between €6,000 and €10,000 — to take it off the market. This gives your lawyer time to review the contracts and verify all legal details.
2. Private Purchase Contract (PPC)
Within about 30 days, you’ll sign the Private Purchase Contract and pay around 20–30% of the purchase price, minus your reservation deposit. This confirms your commitment to the property and allows construction to continue in your name.
3. Stage Payments During Construction
As the build progresses, the developer may request additional stage payments — for example, another 10% when the structure is complete or when major milestones are reached.
💡 Some developers are more flexible than others when it comes to payment schedules.
If you need a bit more time between instalments, or want to align payments with a mortgage or sale back home, it’s often possible to negotiate — particularly on early-phase projects.
4. Final Payment at Completion
The remaining balance (usually around 60–70%) is paid on completion — once the property is finished, inspected, and ready to move in. If you’re financing with a mortgage, this is when your bank releases the funds.
🔒 Your Payments Are Protected
Every payment you make should be covered by a bank guarantee, ensuring your money is safe if the project isn’t completed for any reason. This legal safeguard is one of the main benefits of buying through a reputable developer in Spain.
🏡 Why It’s a Smart, Secure Process
The staged payment structure makes buying off-plan in Spain both manageable and secure — allowing you to spread payments across the construction period while ensuring full legal protection.
If you’d like to see examples of current new-build projects in Mijas Costa, or want a breakdown of payment terms for a particular development, feel free to get in touch.
💬 Watch the full Two-Minute Tuesdays episode above, and don’t forget to subscribe to our YouTube channel for more quick answers to your Costa del Sol property questions every week!