When buying a new-build property in Spain, you typically pay a series of instalments before the property is complete. Spanish law obliges the selling party to guarantee those amounts — either through a bank guarantee (aval bancario) or an insurance policy. Without that guarantee, a buyer risks losing their money if the project is never finished. Below is a practical account of how the system works, what your contract must contain, and which new-build projects you can use as reference points when asking the right questions.
What the law requires: Ley 38/1999 and the guarantee framework
The obligation to provide a guarantee is embedded in the Ley de Ordenación de la Edificación (LOE) of 1999 and tightened further by Ley 20/2015. The rule is straightforward: every euro paid before completion — including the deposit on the reservation contract and every instalment during construction — must be individually covered by a bank guarantee or a recognised insurance policy. The guarantee falls away automatically at completion, once the cédula de habitabilidad (certificate of occupancy) has been issued and the notarial deed signed.
In practice, you request the guarantee document when signing the purchase contract (contrato de compraventa). Every subsequent stage payment should be accompanied by an individual guarantee certificate — an aval individualizado. Check the name of the bank or insurer: it must be an institution regulated in Spain by the Banco de España or the DGSFP.
Off-plan versus key-ready: the difference in risk
With a key-ready project (obra nueva terminada) you pay the full purchase price at the point of signing the deed; there are no interim payments, and therefore no guarantee risk during construction. With an off-plan project (sobre plano), stage payments can amount to 30–40% of the purchase price before completion. That is precisely where the bank guarantee matters most.
On top of the purchase price, new-build buyers pay 10% IVA (VAT) rather than transfer tax, plus around 1.5% for notary and registration costs and 1–2% for legal fees. Total additional costs typically fall between 12% and 14% of the purchase price, depending on the province and the notary.
Kosmos — Torremolinos
Kosmos is a project in Torremolinos (Costa del Sol) offering ground-floor apartments, standard apartments and penthouses. Prices run from €401,500 to €532,000, with two or three bedrooms. The complex has a swimming pool. Torremolinos is around 15 minutes by car from Málaga-Costa del Sol Airport (AGP), which increases accessibility for international buyers. On an off-plan purchase in this price range, a 30% deposit already exceeds €120,000 — exactly the kind of sum that makes the bank guarantee essential.
Helvet Green — Las Lagunas de Mijas
Helvet Green is located in Las Lagunas de Mijas, an inland residential area within the municipality of Mijas (Costa del Sol), roughly 10 kilometres from the coast at Fuengirola. The project offers apartments, penthouses and ground-floor units with one to three bedrooms, and has a swimming pool. The price range runs from €248,000 to €1,000,000, indicating a wide spread of unit types within the same development. At the upper end of that range the sum to be guaranteed is substantial; verify that a separate aval covers each individual instalment.
Mediterranea Luxury Homes — San Pedro del Pinatar
Mediterranea Luxury Homes is a villa project in San Pedro del Pinatar, on the Mar Menor coast in the Region of Murcia (Costa Cálida). The price is €489,000 for a three-bedroom villa. San Pedro del Pinatar borders the protected natural area of the Salinas y Arenales de San Pedro del Pinatar, a national park. For buyers from the Netherlands or Belgium, the nearest international airport is Murcia-Corvera (RMU), roughly 45 minutes by car. With a fixed price of €489,000 and a typical payment schedule of 20–30%, the guaranteed amount works out at €97,800 to €146,700.
Mascarat Suites — Pueblo Mascarat
Mascarat Suites is a villa project in Pueblo Mascarat, a small coastal settlement between Altea and Calpe on the northern Costa Blanca. Prices range from €2,200,000 to €2,300,000 for a four-bedroom villa with a swimming pool. At this level, deposits are considerable: 20% of €2,200,000 is €440,000. It is particularly important here to confirm that the bank guarantee does not merely cover the total amount, but that each individual instalment is separately documented.
Oasis 005 — Altea
Oasis 005 is a four-bedroom villa in Altea (northern Costa Blanca), priced at €3,450,000. Altea is approximately 60 kilometres north of Alicante-Elche Airport (ALC). At a purchase price of this level, the sum to be guaranteed under a standard payment schedule can exceed €1,000,000 before completion. In this case, have the bank guarantee reviewed by an independent Spanish lawyer specialising in property law.
What to check before signing
A checklist for the serious buyer: request the guarantee document before making any payment; verify that the guaranteeing institution is registered with the Banco de España; confirm that the guarantee amount also covers the IVA (VAT) on each instalment; and save every aval individualizado as a time-stamped PDF. Obtain a NIE number before signing the reservation contract — without a NIE it is not possible to complete a notarial deed in Spain. A NIE application can be made through a Spanish consulate in the Netherlands or directly at a comisaría de policía in Spain, and typically takes one to four weeks.
