5 rules of Spain law that matter when you buy off-plan, each quoted from the official text with a link. We include an article only after reading it in the official source. General information, not legal advice: ask a local lawyer about your contract.
In Spain, money paid before completion must be guaranteed and kept in a special account#
Escrow or protected account, Payment schedule, Termination and refund
A developer taking payments for homes under construction must guarantee their return plus legal interest, by insurance or a bank guarantee, from the moment it has the building licence, in case construction does not start or is not finished on time. The payments must go into a special bank account, separate from the developer's other money. Ask for your individual guarantee before you pay.
Garantizar, desde la obtención de la licencia de edificación, la devolución de las cantidades entregadas más los intereses legales, mediante contrato de seguro de caución suscrito con entidades aseguradoras debidamente autorizadas para operar en España, o mediante aval solidario emitido por entidades de crédito debidamente autorizadas, para el caso de que la construcción no se inicie o no llegue a buen fin en el plazo convenido para la entrega de la vivienda.
Translation: Guarantee, from the time the building licence is obtained, the return of the amounts paid plus legal interest, by a surety insurance contract with insurers duly authorised to operate in Spain, or by a joint and several guarantee issued by duly authorised credit institutions, in case construction does not start or is not completed within the period agreed for handing over the home.
Law 38/1999 on Building Regulation (Ley de Ordenación de la Edificación), first additional provision, First additional provision, One, 1 (a) and (b). Boletín Oficial del Estado (boe.es), consolidated text.
Penitential deposit (arras): buyer walks away and loses it, seller walks away and pays it back double#
Termination and refund
If the contract uses a deposit as arras or señal, either side can withdraw: the buyer by losing the deposit, the seller by returning it doubled. Check which kind of deposit your contract describes; contracts often say.
Si hubiesen mediado arras o señal en el contrato de compra y venta, podrá rescindirse el contrato allanándose el comprador a perderlas, o el vendedor a devolverlas duplicadas.
Translation: If a deposit (arras or señal) was given in the sale contract, the contract may be cancelled by the buyer agreeing to lose it, or by the seller returning it doubled.
Spanish Civil Code (Código Civil), Article 1454. Boletín Oficial del Estado (boe.es), consolidated text.
If the home is not delivered, the buyer can cancel and get the money back with legal interest, or agree a new date in writing#
Under the first additional provision of Law 38/1999, if construction has not started or the home has not been delivered, the buyer may choose between cancelling the contract with a refund of the amounts paid on account, including applicable taxes, increased by legal interest, or granting the developer an extension, written into an additional clause with the new completion and delivery date.
Si la construcción no hubiera llegado a iniciarse o la vivienda no hubiera sido entregada, el adquirente podrá optar entre la rescisión del contrato con devolución de las cantidades entregadas a cuenta, incluidos los impuestos aplicables, incrementadas en los intereses legales, o conceder al promotor prórroga, que se hará constar en una cláusula adicional del contrato otorgado, especificando el nuevo período con la fecha de terminación de la construcción y entrega de la vivienda.
Translation: If construction has not started or the home has not been delivered, the buyer may choose between cancelling the contract with a refund of the amounts paid on account, including applicable taxes, increased by legal interest, or granting the developer an extension, which shall be recorded in an additional clause of the contract, specifying the new period with the date of completion and delivery of the home.
Law 38/1999 on Building Regulation (Ley de Ordenación de la Edificación), first additional provision, as in force, First additional provision, Four (Cuatro). Boletín Oficial del Estado (boe.es), consolidated text, checked 2026-11-04.
The contract must say the developer will refund payments plus legal interest if the deadlines are missed#
A Spanish contract that takes payments on account must state that the developer will return them, with taxes and legal interest, if construction does not start or finish within the agreed deadlines, or the occupancy licence is not obtained. It must also name the insurer or bank that guarantees this and the special account.
Que el promotor se obliga a la devolución al adquirente de las cantidades percibidas a cuenta, incluidos los impuestos aplicables, más los intereses legales en caso de que la construcción no se inicie o termine en los plazos convenidos que se determinen en el contrato, o no se obtenga la cédula de habitabilidad, licencia de primera ocupación o el documento equivalente que faculten para la ocupación de la vivienda.
Translation: That the developer undertakes to return to the buyer the amounts received on account, including applicable taxes, plus legal interest, if construction does not start or finish within the agreed periods set in the contract, or the certificate of habitability, first occupation licence or equivalent document allowing occupation of the home is not obtained.
Law 38/1999 on Building Regulation (Ley de Ordenación de la Edificación), first additional provision, as in force, First additional provision, Three (Tres) (a) to (c). Boletín Oficial del Estado (boe.es), consolidated text, checked 2026-11-04.
If the developer does not refund within 30 days of a formal demand, the buyer can claim from the insurer or bank#
The buyer first demands the refund from the developer in a verifiable way. If the developer has not paid within thirty days, the buyer can claim from the insurer (who must pay within thirty days of the claim) or from the bank guarantee. A bank guarantee lapses if the buyer has not demanded cancellation and refund within two years of the developer's breach.
En caso de que la construcción no se inicie o no llegue a buen fin en el plazo convenido el asegurado, siempre que haya requerido de manera fehaciente al promotor para la devolución de las cantidades aportadas a cuenta, incluidos los impuestos aplicables y sus intereses y este en el plazo de treinta días no haya procedido a su devolución, podrá reclamar al asegurador el abono de la indemnización correspondiente.
Translation: If construction does not start or is not completed within the agreed period, the insured, provided they have formally required the developer to return the amounts paid on account, including applicable taxes and interest, and the developer has not done so within thirty days, may claim the corresponding indemnity from the insurer.
Law 38/1999 on Building Regulation (Ley de Ordenación de la Edificación), first additional provision, as in force, First additional provision, Two (Dos), 1 (h) and 2 (b) and (c). Boletín Oficial del Estado (boe.es), consolidated text, checked 2026-11-04.
Used by the late-handover calculator and the contract law notes. See also how to check a project in Spain.
Did we misread a rule? Send documents and we add your reply or correct the record: right of reply · corrections. Every figure here is computed from the open dataset (/data/bali-cases.json, CC BY 4.0) and changes when the data changes.