Note
Guarantees on off-plan payments in Spain
Quick answer
The law requires a developer who collects advance payments to guarantee their refund and to hold them in a separate account. The protection works only if the guarantee exists and you hold a copy. Ask for the guarantee and the account details before you pay each instalment.
Applies toBuyers who pay anything before a home is finished. This includes reservations and staged payments to a developer, whether the buyer lives in Spain or abroad.
On this page: 6 sections
§ 1The rule
Spanish building law requires developers who collect advance payments from buyers to guarantee their refund, and to pay the money into a special account used only for that purpose. The aim is that your money is protected if the building is not completed. The rule is one of the main reasons off-plan purchases are workable for buyers, and the details of the guarantee are in the document, not in the sales talk.
§ 2What to ask for
Before you pay anything, ask for the guarantee that will cover your payments and for the details of the separate account. The guarantee should name you, the property and the amounts, and the account should be one the developer cannot use for other purposes. If the developer is slow to produce either, treat that as information. The registrars also advise checking the developer's registration, its ownership of the land and the building licence before any deposit.
§ 3Matching each payment
A guarantee that covers your first payment does not automatically cover later ones. For each instalment, check that the guarantee covers the amount or that a new one is issued, and that you pay into the special account and not another. Notaries prefer payment by bank transfer, so the record shows who paid whom, and you can prove each payment later.
§ 4When you may need it
You may need the guarantee if the building is not finished by the date in the contract, if the developer cannot complete it or if the licence is refused. The conditions for a refund are in the guarantee and the contract, and they include notices and time limits. Keep your copies safe, record every exchange and take legal advice at the first sign of trouble, since deadlines can run quickly.
§ 5What the guarantee does not do
A guarantee returns money. It does not complete the building, repair a defect or compensate you for the delay and the lost chance of buying elsewhere. It is therefore one safeguard among several. The earlier checks on the developer remain your first defence, and the handover inspection is your last.
§ 6Related reading
The whole route is explained in buying before it is built, and developer bankruptcy covers what a failure means in practice.
For finished homes, how a new-build purchase works describes the route, and the decennial insurance explains the long-term guarantee on the structure.
At the end, defects at handover shows how to check the home you receive, and second-hand homes describes the alternative that needs no such guarantee.
Groups that build for their members face the same questions, which how cooperatives work addresses, and the difference between new and resale places them all side by side.
FAQRelated questions
What should I ask for to confirm the guarantee?
A copy of the guarantee issued for your payments, naming you, the property and the amounts, and the details of the separate account where your money will be held. Keep both with the contract and check them against each instalment.
Does the guarantee cover the reservation deposit?
Ask. The law speaks of advance payments, and whether a particular reservation falls under the guarantee depends on how it is structured. Have your lawyer confirm in writing before you pay, not afterwards.
Who do I claim from if the building stops?
The guarantee names who must refund you and under what conditions, so claims start from that document. Act quickly and with a lawyer, because the conditions and the time limits are in the guarantee and the contract.
Sources
- Boletín Oficial del Estado: Ley 38/1999 de Ordenación de la Edificación (official source, opens in a new window), Articles 17 and 19; disposiciones adicionales primera y segundaLast checked 17 October 2026
- Colegio de Registradores de España: Cómo comprar una vivienda en España (edición revisada, February 2020) (official source, opens in a new window), The five steps, nota simple, taxes and costsLast checked 17 October 2026
- Consejo General del Notariado: Houses and real estate properties (official source, opens in a new window), Steps, documents and the notary's roleLast checked 17 October 2026
Legal note. How the process works in general. It is not legal advice, and it never replaces an independent Spanish lawyer acting for you.