Buying Off-Plan in Spain: Bank Guarantees Explained (2026)

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Lamborghini Villas Marbella 2 de November de 2026 Buying & Investing

When you buy a new build villa off-plan in Spain, you pay part of the price long before you get the keys. Spanish law has a specific mechanism to protect that money: every payment on account must be covered by a bank guarantee or an insurance policy, and paid into a special account. This guide explains what the law requires, what the guarantee covers, how to claim it and what to check before you sign.

What the law says

The rule is in the First Additional Provision of Spain’s Building Act (Ley 38/1999 de Ordenación de la Edificación), as amended by Law 20/2015. It has applied since 1 January 2016 and covers homes sold before or during construction. From the moment the building licence is granted, a developer that takes money on account from buyers must:

Guarantee the refund of everything the buyer has paid, plus statutory interest, through an insurance policy (seguro de caución) or a joint and several bank guarantee (aval solidario) from a credit institution.
Receive the payments through a bank, into a special account kept separate from the developer’s other funds, which can only be used for the construction.

What the guarantee covers

The guarantee must cover the full amount you pay on account, including taxes (VAT on a new build home), plus the statutory interest on that money from each payment until the scheduled delivery date. It applies if construction does not start or is not finished within the agreed period.

Item	Bank guarantee (aval)	Insurance (seguro de caución)
Issued by	A credit institution (bank)	An insurance company
Form	Guarantee for the amounts paid	Individual policy for each buyer
Who is covered	The buyer	The buyer is the insured party; the developer takes out the policy
Amount	Payments on account, taxes and statutory interest	Payments on account, taxes and statutory interest up to the delivery date

If the developer stops paying the insurance premium, the insurer cannot use that against the buyer.

How to claim if the project is not delivered

Formal demand to the developer. If construction has not started or has not been completed on time, you formally request the termination of the contract and the refund of everything you paid.
Thirty days. If the developer has not refunded the money within 30 days of that demand, you can claim directly from the insurer or the bank that issued the guarantee.
Payment by the insurer. With an insurance policy, the law gives the insurer a further 30 days to pay.

Watch the deadline: a bank guarantee lapses two years after the developer’s breach if, in that time, the buyer has not requested the termination of the contract and the refund. If a delivery date passes, speak to your lawyer straight away.

When the guarantee ends

The guarantee is cancelled once the first occupation licence (or an equivalent document) has been issued and the home has been handed over to the buyer. From that point the protection that matters is the building insurance.

After handover: the ten-year structural insurance

Under article 19 of the same Act, the developer of a new home must take out a ten-year insurance (seguro decenal) covering material damage caused by defects in the foundations, beams, slabs, load-bearing walls and other structural elements. The buyers who own the home during those ten years are covered by it. The builder is also liable for one year for finishing defects, and there is a three-year liability for defects affecting habitability.

Checklist before you pay a deposit

Ask for the building licence: the obligation to guarantee your payments starts once it is granted.
Ask for the individual guarantee or insurance certificate in your name for each payment, and check the amount includes VAT.
Check that the contract identifies the special bank account where your payments go.
Check the delivery date written in the contract: it is the date that triggers your rights.
Keep every proof of payment and every guarantee document together.
Have an independent Spanish lawyer review the contract and the guarantees before you sign.

Questions buyers ask

Is a bank guarantee compulsory when buying off-plan in Spain?

Yes. Since the building licence is granted, a developer that takes payments on account for a home must guarantee their refund with a bank guarantee or an insurance policy.

Does the guarantee include VAT?

Yes. It covers the amounts paid on account including taxes, plus statutory interest until the scheduled delivery date.

What if the developer does not refund me?

After a formal demand and 30 days without a refund, you can claim directly from the bank or insurer that issued the guarantee.

Buying a new build villa at Tierra Viva

Tierra Viva is a gated community of 53 Lamborghini-designed mansions in the hills of Benahavís, sold as new build homes. Before reserving, ask for the purchase documentation and have your lawyer check the guarantees for your unit, as this guide recommends for any off-plan purchase. See the new build villas in Marbella, the step-by-step guide to buying a new build villa and how a mortgage for non-residents works.

Prices are not published. Message us on WhatsApp to receive the brochure, floor plans and availability: +34 617 455 454.

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This article is general information, not legal advice. Sources: First Additional Provision and article 19 of Law 38/1999 on Building Regulation (as amended by Law 20/2015) and the Bank of Spain’s customer guide on guarantees for home purchases. Last reviewed: November 2026.

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Buying Off-Plan in Spain: Bank Guarantees and How Your Payments Are Protected (2026)