Stage payments in Spain: which bank pays the instalments before handover
The usual banks pay at handover. Until then you bridge — and after the last day on site, the town hall still has its say. The lender we arrange pays each instalment as it falls due.
How many lenders pay stage payments in Spain directly to the developer?
One of the 30+ lenders we approach per case pays stage payments in Spain directly to the developer. Standard Spanish banks release funds only at handover, because the mortgage comes into existence with completion and registration. With that lender your equity goes in first, after which the bank covers each instalment in full as it falls due.
What is inside:
- Disbursement · each instalment in full, while the building goes up
- Equity · paid in first, sized against the tasación
- Recipient · straight to the developer
- Property type · developer new build (obra nueva) — not self-build
- Lenders writing this · 1 of 15–20 approached (Perini Market Check, as at 08.10.2026)
Open the PDF directly — no form · Financing new-build stage payments — Spain (PDF)
All figures are orientation from our brokerage practice — not a commitment and not a guaranteed condition. Whether a case works depends on the property, the valuation and your standing: subject to credit assessment, case by case, no legal entitlement.
What payment schedule does every developer write?
The developer's schedule runs from reservation and private contract through stage payments across the whole build to completion (escritura), when the balance falls due and a mortgage can be registered.
- Why does the Spanish bank only pay at completion? Because an unfinished property can't be conveyed or carry a mortgage; the mortgage comes into existence with completion and entry in the Registro de la Propiedad. The Spanish banks.
- How much do you pay during construction? Typically 20 to 30% of the price (reservation, contract, progress instalments); the remainder falls due at completion and is usually covered by the mortgage.
- Does an aval finance the instalments? No — it only protects instalments already paid if the developer fails. Financing the instalments during construction is a separate step.
- Who pays the stage payments in Spain during a new build? As a rule you pay the stage payments in Spain yourself — and that is the gap most new-build purchases founder on.
Standard Spanish banks release funds only at handover, because the mortgage comes into existence with completion and registration at the Registro de la Propiedad.
After that the Licencia de Primera Ocupación still has to follow: one to three months by statute, usually three to six in practice, occasionally up to two years.
Across a build period of 18 to 36 months the developer's instalments have to come from your own capital, typically 20 to 30 per cent of the purchase price. Of the 30+ lenders we approach per case, one pays those instalments directly to the developer.
The mechanism matters: your equity goes in first, after which the bank covers each instalment in full as it falls due. No instalment is split, and at no point are you left bridging the payment yourself.
1. Reservation. A few thousand euros to take the unit off the market. 2. Private contract. Once the building licence is in place: the first substantial payment. 3. Stage payments. Monthly, quarterly or half-yearly, across the whole build. 4. Completion (escritura). Only now does the balance fall due — and only now can a mortgage be registered.
Then comes the town hall. Once the build is technically finished, the Licencia de Primera Ocupación is still missing. Without it there are no utility connections, no notarial deed, no keys — and banks will not approve a mortgage. Three to six months is normal; in some municipalities it drags on for up to two years (Perini Market Check, 08.10.2026). Registration adds more.
Add it up: the developer wants money as the building rises. The bank pays after the licence. In between sit months in which the buyer has to bridge millions — and whoever cannot, does not buy. Not for lack of standing. For lack of cash.
Financing a new build in Spain during construction: when does the bank pay out?
The bank only pays out at the escritura; before that come the reservation, the private contract with a first larger payment once the building permit has been granted, and instalments according to construction progress.
- Reservation. A few thousand euros to take the unit off the market.
- Private contract (contrato privado). As soon as the building permit has been granted: a first larger payment.
- Instalments according to construction progress. Monthly, quarterly or half-yearly — depending on the developer’s schedule, over the entire construction period.
- Escritura. Only now, at handover, is the remainder due — and only now can a mortgage be registered.
What are the sequence and timeline through to drawdown on a new build in Spain?
From checking the structure through reservation, the approach to at least two of 15 to 20 institutions and the valuation to the keys; the realistic duration of each stage is in the table.
Row 9 is the row that kills purchases. Between the last stage payment and the day a standard bank pays out sits an administrative procedure nobody can influence. Build it into your liquidity planning even if you do not use this structure: across the build period it is typically 20 % to 30 % of the purchase price that has to come from your own capital — plus the wait for the licence.
| Stage | What happens | Realistic duration |
|---|---|---|
| 1 · Check the structure before anything binds | payment schedule, developer, expected valuation | 1 to 2 weeks |
| 2 · Reservation | a few thousand euros to take the unit off the market | days |
| 3 · Approach at least two of 15 to 20 institutions | one of the 30+ lenders we approach pays the instalments before handover | in parallel |
| 4 · Valuation of the scheme | valued against the specification and the payment schedule | 5 to 10 working days |
| 5 · Approval and disbursement plan | which instalment goes to the developer, and when | up to 10 days with a complete file |
| 6 · Private contract (contrato privado) | only now — a first larger payment falls due | after approval |
| 7 · Construction with instalments by progress | monthly, quarterly or half-yearly, following the developer's calendar | 18 to 36 months |
| 8 · Technical completion | the building is finished and signed off by the architect | end of the build |
| 9 · Licencia de Primera Ocupación | without it: no utilities, no deed, no mortgage | 1 to 3 months by law, 3 to 6 in practice — some municipalities up to 2 years |
| 10 · FEIN and two notary appointments | binding offer, briefing, then purchase and mortgage deeds | at least the 10-day FEIN period, at least 11 days in all |
| 11 · Escritura, registry, keys | the mortgage only comes into existence on registration | days to weeks |
What does our lender do differently?
The headline is not the ratio — 60 to 70 per cent is the standard ceiling for non-residents (up to 70 per cent of the lower of price and tasación), available at any counter. The headline is the bridge: there isn't one. You put your equity in first, sized against the tasación. From then on the bank pays every developer instalment in full, as it falls due, straight to the developer.
The developer matters. Without a building licence, a bank guarantee (aval) for the sums paid, and a credible completion date, the structure does not stand. The developer's standing is assessed too — not only yours.
The completion date is dependable and in writing. Verbal dates carry neither the bank nor your own planning.
The purchase costs exist on top. On a new build, IVA and AJD alone come to around 11.4 %. The bank finances the price, not the tax.
Sequence matters. Sign the private contract first and come to financing afterwards, and the payment calendar is already fixed. Our structure then has to fit round it, rather than the other way round. Valuation matters. New-build valuations do not automatically match the asking price.
You pay the difference. It is not a commitment. All figures are orientation from our brokerage practice — not a commitment and not a guaranteed condition.
Which lender does this is not on this page. There is one, the access took years to build, and it holds only while it stays out of the mass market. You get the name when we set your case up.
What is this structure for, and what is it not for: stage payments on a new build in Spain?
This is about buying from a developer — obra nueva with a building permit and a bank guarantee.
| Suited to | Not suited to |
|---|---|
| Developer new build with a building permit and an aval | Autopromoción — self-build on your own plot follows different rules |
| Buyers who have not yet signed the payment schedule | Cases where the private contract already binds and the calendar is fixed |
| Properties whose valuation supports the price | The expectation that the bank will finance a valuation gap |
| Buyers whose liquidity should not have to bridge the build | Bridging finance without property security — a different product |
| Cases where the first bank has already walked away | Refurbishment or conversion of an existing property — a different structure applies |
Where does it fall apart?
It falls apart at a developer without a building permit or bank guarantee, at the wrong order, at a tasación below the price and at purchase costs treated as financeable.
- The developer. Without a building permit, without a bank guarantee (aval) for the payments made and without a reliable completion date, the structure cannot be put together. The creditworthiness of the promotora is checked as well — not only yours.
- The order. Anyone who signs the private contract and comes to financing afterwards has already given up their negotiating position. The payment schedule is then fixed, and our structure has to follow it — not the other way round.
- The tasación. Valuations of new builds do not automatically come in at the sale price. You pay the difference.
- Purchase costs treated as financeable. IVA and AJD are equity and fall due before the loan is paid out.
Which bank does this is not stated on this page. It is a single one, the access has grown over years, and it only lasts as long as it does not become mass business. You will learn the name when we set up your case.
Where do you stand?
All three cases reach us. All three are solvable — but not equally well at every stage.
- You have a property in view — and signed nothing yet (Case 1): The best moment. We check the developer's payment schedule before it binds you. Have your case checked.
- Your bank promised — and withdrew (Case 2): A verbal yes, the valuer comes out, then: we must wait for handover. The reservation is signed, the money is committed, the purchase wobbles. This case reaches us regularly — and it is solvable while the building has not been signed off. Have your case checked.
- You have already paid — and are waiting for handover (Case 3): The capital is stuck, nothing is registered, there is no mortgage. Even then it is not over: up to 70 % of the tasación can be raised afterwards — even where you went in with far more equity. But the window is narrow. Have your case checked.
- The window. Ideally before handover. Once the building has been signed off, our experience is that only a short window of a few months remains for financing and registration.
Where exactly that window closes is set by the lender — it is not a statutory deadline, and we treat it case by case. Whoever misses it is no longer a buyer arranging finance but the owner of a paid-off property.
Then only the existing-property route remains: as a rule up to 50 % of the tasación instead of 70 %, with the use of funds tied. Twenty percentage points on a seven-figure sum.
And the case we see most often and can help with least: people who never found us. They did not buy the new build — not because they could not pay for it, but because nobody arranged the financing. That is the gap we close.
On Ibiza the bank pays the instalments — not your reserve
Equity in first, then every instalment paid in full from the loan
A couple buys a new-build villa in Es Cubells from a developer; construction takes around 24 months. A standard Spanish bank pays only at handover — and after the build ends, the Licencia de Primera Ocupación still takes three to six months in practice. Until then the buyer would have to bridge.
Purchase price (= tasación) — Amount: €4,500,000; Note: developer new build, not self-build. Purchase costs (approx. 13 %) — Amount: €585,000; Note: IVA, AJD, notary, registry. Equity, paid in first — Amount: €1,350,000; Note: sized against the tasación.
Loan — Amount: €3,150,000; Note: every further instalment paid in full from it. Buyer's bridge after the equity is in — Amount: €0; Note: the bank pays when the instalment falls due.
Bridge as a rule (until handover + LPO) — Amount: every further instalment; Note: out of own liquidity, often for months.
The difference is not the ratio, it is the bridge. As a rule the buyer carries every instalment until handover — and then waits for the licence. Here the bank pays as each instalment falls due.
And the other side of it: Total loan €3,150,000, secured on the new-build property. Own funds across the transaction: €1,935,000. The disbursement schedule follows the developer's payment plan and the lender's offer.
Note: This worked example is based on typical financing constellations from our practice. All amounts, persons and property data are anonymised or illustrative. It is not a customer testimonial. Every financing is assessed individually against personal standing, the property valuation (tasación) and the lender's own criteria.
Region: Property finance in Ibiza
One constellation calculated through: which assumptions and figures apply to the worked example for a new build on the Costa Blanca?
Assumptions, all our own: a developer new build on the Costa Blanca (Comunitat Valenciana), purchase price €500,000, valuation equal to the price, build time 24 months, term 20 years. Not an offer and not a commitment.
This is how the €150,000 of equity flows: €6,000 at reservation, €100,000 with the private contract and the remaining €44,000 with the final payment at the escritura. The bank pays the four stage payments (€200,000) in full and directly to the developer. The purchase costs of €66,412 come on top, from own funds.
| Item | Amount | Where the figure comes from |
|---|---|---|
| Purchase costs in total | €66,412 | 13.3 % — above the 10 to 13 % band, because IVA and AJD alone come to 11.4 % |
| Loan, 70 % of the lower of price and valuation | €350,000 | the market-standard cap for non-residents |
| Equity, paid in first | €150,000 | sized against the valuation |
| Bridging required once the equity is in | €0 | the bank pays each instalment as it falls due |
| Bridging as a rule, up to the deed | €100,000 to €150,000 | stage payments of 20 % to 30 % of the price out of your own liquidity |
What do we take on when financing stage payments, and what do we charge?
We take on the pre-check, the selection of lenders, the documents, the contract check and support up to the notary; our fee is 1 % of the loan actually arranged.
A check before you sign. You hear whether the structure holds before the preliminary contract — not after the deposit has left your account.
- A selection of lenders, not a branch visit. We work with 15 to 20 institutions and approach at least two of them per case: major Spanish banks, regional cajas, non-resident specialists and international lenders. What counts is who writes the structure, not who calls it conceivable (Perini Market Check, as at 08.10.2026).
- Documents in bankable form. We sort them, have them translated and file them — with a complete file, processing runs from 3 days to 4 weeks.
- Contract check. The arras contract and the payment schedule are reviewed before they bind you.
- Support up to the notary. Two appointments, the ten-day FEIN period, the registry entry — the order of events is half the battle.
Our fee is 1 % of the loan actually arranged — not of the purchase price — falls due only if the financing completes, and carries no Spanish VAT. If no financing materialises you pay nothing: no advance payment, no handling charge. If the loan ends up smaller than planned, the fee shrinks with it.
Financing new-build stage payments — Spain — the guide as a PDF
How the structure works, what breaks it, which documents the lender wants to see and in which order to proceed.
Free, by email, no upfront cost.
Frequently asked questions
Why does the Spanish bank only pay at completion?
Because an unfinished property cannot be conveyed before a notary and therefore cannot carry a mortgage. Without registrable security there is no loan. The mortgage comes into existence with completion and entry in the Registro de la Propiedad.
I’ve already paid for the property in full — is there anything else I can do?
Yes. You can subsequently secure financing for up to 70 % of the tasación, even if you started out with significantly more equity. The timing is crucial: ideally before the building is signed off. After that, there’s only a short window of opportunity, and anyone who misses it ends up borrowing against an existing property — usually up to 50 % rather than up to 70 %.
How much must I pay during construction in Spain?
Typically 20 to 30 per cent of the purchase price: reservation, a payment on signing the private contract, and instalments as building progresses. The remainder falls due at completion and is usually covered by the mortgage.
Is this the same as a self-build mortgage (autopromoción)?
No. Autopromoción is self-build on your own plot; staged disbursement is standard there and several lenders offer it. This is a purchase from a developer, where the buyer normally funds the construction period personally.
Do I need to bring equity?
Yes, and it comes first. The amount depends on the tasación (valuation). Only after that does the bank take over each instalment in full — nothing is split, nothing is deferred.
Can I take over the developer's mortgage instead (subrogación)?
Often, yes — but it also only applies from handover. It doesn't solve the construction-period problem, it just shortens the path to final financing. And since the 2019 reform it's no longer automatically the cheaper option; it needs to be compared against the alternative.
Isn't a bank guarantee (aval bancario) enough on its own?
No — it answers a different question. An aval bancario or surety bond protects the instalments you've already paid: if the developer fails, that money comes back. The instalments themselves still have to be paid from your own funds in the meantime. Financing those instalments during construction — the subject of this page — is a separate, second step.
I've already paid some instalments. Is it too late?
Not necessarily — but the later you start, the tighter it gets. What's already gone out can't be restructured; only what's still to come can be. Get in touch with your payment schedule and we'll see what's still workable.
Before you sign the private contract
Send us the developer's payment schedule and the key facts of the property. We will tell you whether the structure holds in your case — beforehand, not afterwards.
Related pages
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all three structures
Special financing in Spain: stage payments during construction, capital from a paid-off Spanish property, German security, equity raised at home.
Mortgage calculator
Monthly payment, loan and purchase costs by region straight away; total cost and equity needed by email.
Private mortgage lender in Spain: when is it the right route?
We arrange it from €250,000, and only once the bank route has been tested and no bank will write the case. It costs a multiple of bank finance.
Construction phase financing in Spain: why won't the standard bank pay?
Construction phase financing in Spain: the mortgage only comes at completion, so off-plan instalments of often 20 to 30 per cent are your own money.
Property as security for a loan: Can the money be transferred to another European country?
As a rule, up to 50 % of the tasación is possible — not the rate that applies on a purchase, because with an existing property no purchase price confirms the value.
Self-disclosure form: What do banks in Spain and Portugal want to know?
Each of these is set out in the self-disclosure form before any application is submitted — which is why this form alone is enough to tell whether a case has merit.
Mortgage approval for a new-build property in Spain: When does it come before the escritura?
Delays of a few months are common. The key factor is whether the contract grants you a genuine right to withdraw once a specified time limit has been exceeded.
Content by Siegfried Perini — local brand representative since 2019, active in real estate since 1992, entered in the German intermediary register (§ 11a GewO) as a person directly involved in brokerage and advice. Point of contact for German-speaking buyers in Spain and Portugal. Brokerage by Olga Nikushkina, mortgage credit intermediary under § 34i German Trade Regulation (GewO); in Portugal through a locally licensed intermediary.