EVERYTHING YOU NEED TO KNOW BEFORE BUYING A OFF-PLAN PROPERTY IN COSTA DEL SOL

Buying Off-Plan or Under Construction Property in Costa del Sol

Bank Guarantees
Construction Timeline and Key Handover
Benefits of Investing in Off-Plan Real Estate
Payment Plan
Taxes on Purchasing an Off-Plan Property
Mortgages for Non-Residents in Spain
Purchase Agreement
Legal and Financial Protection
Cancelling the Purchase of an Off-Plan Property
Construction Delays
Best Locations for Buying Off-Plan Properties
Conclusion

Is It Safe to Buy an Off-Plan Property in Costa del Sol?
In this article, we’ll guide you through everything related to buying a new construction property in Costa del Sol, ensuring you make a safe and informed decision.

What Are the Benefits of Buying an Off-Plan Property in Costa del Sol?

Unbeatable Prices!

Off-plan properties in Costa del Sol have lower prices compared to a completed property. This means you can secure a great deal, and once the construction is completed, the value of the house may increase significantly, sometimes by as much as 50%, depending on the area.

Customize Your Home Design During Construction

Another benefit of buying off-plan is the possibility to customize your home. You can choose the layout, materials, and finishes so that everything is exactly how you want it. Imagine having your dream home designed precisely according to your taste!

Staged Payments During Construction Phases

The developers offer a staged payment plan, allowing you to pay in installments, starting with an initial down payment and then subsequent payments during various construction phases. This lets you better plan your finances. Most payment plans look like this example:

Deposit (paid immediately to reserve the desired unit and remove it from the market): €10,000 + VAT = €11,000.
Private Purchase (around 40 days after the deposit payment): 20% of the sale price + VAT – €11,000 already paid as a deposit.
Deferred, 6 months after PPC: 10% of the sale price + VAT.
Deferred, 12 months after PPC: 10% of the sale price + VAT.
Deed and Key Handover: 60% of the sale price + VAT.
*VAT is set at 10%.

How Long Does It Take to Complete an Off-Plan Property in Costa del Sol?

Generally, construction time can vary between 18 to 24 months, depending on the complexity of the project and the size of the property. This timeline may also include potential delays caused by weather conditions, administrative approvals, or unexpected construction issues.

Our team will provide you with constant updates on the progress of the work and ensure that all phases are completed on time. We only work with renowned developers who have proven their reliability in meeting deadlines, and our legal team will ensure that the contract includes all the necessary clauses to protect you from delays.

What Are the Risks of Buying an Off-Plan Property and How to Protect Yourself

What Guarantees Does the Developer Offer in Terms of Legal and Financial Protection?

In Spain, as in other European countries, payments made for the purchase of a new-build home must be guaranteed by a bank guarantee or an insurance policy to protect your investment. This means that if the developer fails to complete the project, your money will still be safe. Our legal team is here to explain the process in detail and ensure that each payment is protected by these guarantees, so you can buy in complete peace of mind.

What Happens if You Change Your Mind? Can I Cancel the Purchase of an Off-Plan Property?

Typically, purchase contracts include withdrawal clauses that outline the conditions for cancellation. These clauses may involve penalty payments, which can vary depending on the stage of the project and when you decide to withdraw. In some cases, you may lose part of the deposit already paid.

Our legal team will ensure that you are fully aware of the withdrawal conditions before signing any documents, so you can make an informed decision. We will also work to negotiate the most favorable withdrawal conditions to protect your investment.

Construction Delays: What Happens if the Project Is Delayed or Not Completed?

It’s crucial that before signing any purchase contract for an off-plan property, you ensure there are specific clauses providing penalties for potential delays. Our legal team will verify that everything is in your favor to save you from unpleasant surprises. Additionally, we work only with developers with a solid reputation and this means that your money will still be safe. We will guide you step by step in your selection, providing you with our expertise.

Legal and Tax Aspects

Purchase Agreement

I strongly advise you to rely on a team of lawyers specializing in Spanish real estate law. We are here to thoroughly examine the contract and ensure everything is in order. The contract must include all details, such as the purchase price, payment deadlines, bank guarantees, and construction specifications. With us by your side, you can rest assured that every detail will be handled to the highest standard and that your investment will be protected at every step.

Taxes and Costs for Non-Residents Buying Off-Plan in Spain

Taxes on Purchasing an Off-Plan Property

Resident or not resident in Spain, you will need to pay certain taxes, such as VAT (10% for new construction) and AJD (Stamp Duty, 1.2%). There are also notary and registration fees (approx. 1.8%). These costs are standard and part of the purchase process, but it’s essential to be prepared to avoid surprises. Remember that our agency does not charge any commission from the buyer. Therefore, our team will help you calculate everything in advance, giving you a clear overview without any surprises.

Can I Get a Mortgage if I am not Resident in Spain?

The answer is YES! Spanish banks are quite flexible when it comes to granting mortgages to non-residents, and financing is usually between 60% and 70% of the property’s value. Of course, they will ask for documents like proof of income and your financial stability, just as they would in any other country in Europe. Our team will assist you in gathering all the necessary documentation and finding the bank that offers you the best conditions. Our advice is to start the buying process by talking to a trusted bank, and we will certainly be by your side to simplify every step.

Best Locations for Investing in New-Build Properties in Costa del Sol

Marbella

Marbella is famous for its luxury and cosmopolitan charm. If you’re looking for new apartment projects for sale in Costa del Sol and want to live in luxury, Marbella is definitely the right choice. Here you will find exclusive shops, fine dining restaurants, and a unique mix of modernity and tradition. We will accompany you every step of the way, helping you choose the property perfect for your needs.

Estepona

If you’re looking for a more authentic atmosphere, Estepona could be the ideal solution. This town has kept its traditional charm and is perfect for those looking for new apartments for sale in Costa del Sol near the sea but away from the hustle and bustle. With our support, you will be able to explore all available options and find the one that suits you best.

Mijas Costa

For a mix of tranquility and convenience, consider Mijas Costa. It offers spectacular views and an excellent quality of life, and the new homes for sale here combine traditional Andalusian charm with modern comforts. It is also more accessible than Marbella, making it a good option if you want a more affordable investment. We will guide you in your choice, ensuring that every detail is perfect.

Conclusion

Buying a new-build property in Costa del Sol is a great opportunity, but it is important to be prepared and have experts by your side who will carry out the right checks with you. With our team of experts by your side and the necessary legal support, you can make a safe and profitable investment without any risk. If you need further advice or want to discuss the next steps, know that we are here to help you realize your dream.

GUIDES | What You Must Know Before Buying a Property in Costa del Sol