Roughly a third of what we sell is off-plan, and the question every buyer asks — correctly — is what happens to their staged payments if the developer fails. Spain answered that question in law, and the answer is stronger than most people assume.
The special account
Under Law 38/1999 as amended by Law 20/2015, every euro a buyer pays before completion must go into a separate account, held apart from the developer's own money, and used only for the construction of that development. It cannot fund the developer's next site.
The individual guarantee
From the moment the building licence is granted, the developer must give each buyer an individual bank guarantee or insurance policy covering the amounts paid, plus statutory interest. If the building is not delivered, or not delivered on time, you claim against that guarantee rather than against the developer.
This is the document to ask for by name. Not the brochure, not the reservation form — the aval bancario or the póliza de seguro, in your name, for the amount you have paid. Your lawyer should refuse to release a stage payment without it.
What the guarantee does not cover
Finish quality, changes of specification, or the difference between the render and the room. Those are contract matters, which is why the technical specification annexed to your purchase contract deserves more attention than it usually gets. Ours get read line by line.
Why people still do it
Price, mostly. Buying at the launch of a phase is typically the cheapest that unit will ever be, and the payment schedule spreads the cost over the build. You also get to choose your plot, your orientation and your finishes — on this coast the difference between a south-west terrace and a north-east one is the difference between using it and not.
Correct as of 28 May 2026. This is a summary, not legal advice; have a Spanish lawyer review any off-plan contract before you sign.