New-build in Spain — real cases from the construction phase
Anonymised examples of buying and financing during the construction phase — what actually happens step by step.
In short
Why does the bank only pay at handover?
Before handover there is no registrable security, and without the Licencia de Primera Ocupación the deed cannot be signed. Handover takes three to six months, in some municipalities up to two years.
How many banks pay the stage payments?
Exactly one of 15–20 institutions; all the others pay at handover. A no is almost always a statement about the bank asked, not about your case.
Isn't the aval bancario the solution?
No — it secures the instalments you have paid but does not finance them. Financing those instalments during construction is the separate second step.
How does financing work when buying off-plan in Spain?
Differently from Germany or the UK — and that is the most expensive misunderstanding in Spanish new-builds. The mortgage only exists once the property is completed, signed off and registered at the Registro de la Propiedad, after which the Licencia de Primera Ocupación still has to follow: one to three months by statute, three to nine in practice. Across a build period of typically 18 to 36 months the developer's instalments therefore come out of equity, usually 20 to 30 per cent of the purchase price. Those payments must be covered by an aval bancario or seguro de caución, in place before the first instalment rather than at some later point. Of the 15 to 20 lenders we approach per case, one pays the instalments directly to the developer. The cases here show both routes: bridged privately, and solved through a lender.
New build: the developer wants money, the bank pays at the end
A Spanish new-build purchase rarely fails on creditworthiness. It fails on a gap in the calendar — and that gap is structural, not personal.
Spanish banks pay out a new build only at handover. Before that there is no registrable security, and without the Licencia de Primera Ocupación the deed cannot be signed and the keys cannot change hands. The developer, meanwhile, wants instalments as construction proceeds. Everything in between is advanced by the buyer.
Then comes the town hall: handover including the licence takes three to six months by our own survey, and in some municipalities up to two years (Perini Market Check, 01.09.2026). No standard bank pays during that time.
How narrow is this market? Of 15 to 20 institutions we regularly approach, exactly one pays the developer instalments during construction. One. Ask the others and you get a correct answer — and the wrong answer to your question.
- Before signing — the best moment. The developer's payment schedule can be checked before it binds.
- During construction — still good. The structure works while the property is not yet handed over.
- After handover — a short window remains. Where it closes is set by the bank, not by law.
- After that — you are no longer a buyer who finances but the owner of a paid-off property: as a rule up to 50 instead of 70 per cent of the valuation.
And the case we see most often and can solve least often: people who never bought the new build — not because they could not pay, but because nobody arranged the finance. 20 to 30 such enquiries reach us a year, and rising — and those are only the ones who found us.
The structure in detail: stage payments during construction →
Frequently asked — Buying during construction
Why does the Spanish bank only pay at handover?
How many banks pay the stage payments during construction?
Isn't the aval bancario the solution?
I have already paid instalments myself. Is it too late?
Cases from this theme — by region
Mallorca
Practical case Mallorca: New-build apartment in Sóller
Step by step to a second home in the mountains
Practical case Mallorca: New-build villa in Santa Ponsa
Buying during the construction phase with well-considered financing planning
Costa Blanca
Practical case Costa Blanca: New-build villa in Finestrat
Buying early and making sensible use of the construction phase
Fully paid, two-year wait
Capital committed, completion inspection stalled — how it was unlocked.
A similar situation in Spain and Portugal? Let's talk.
Every financing in Spain and Portugal is an individual case. In a free initial consultation I will tell you honestly what is feasible and which bank fits.
Book a free consultationAnonymised individual case, not a binding statement for other projects · Siegfried Perini for the owner Olga Nikushkina · §34i GewO · no tax or legal advice · no financing commitment; conditions depend on creditworthiness, loan-to-value and bank