What does off-plan mean?

Off-plan means buying a property before construction is complete, sometimes before it has started. You sign a contract with the developer, pay a deposit, and pay the balance over construction milestones. You take ownership at handover, typically 12 to 36 months after signing.

How much deposit do I pay on an off-plan property?

Initial deposit is typically 10% to 30% of the price. Subsequent payments follow a milestone schedule, foundations, structure, roof, completion. The bulk of the price is usually paid at handover, often via a mortgage.

What happens if the developer goes bankrupt?

This is the central risk in off-plan. Strong markets, Spain, Italy, Portugal, require developers to provide bank guarantees or insurance bonds covering buyer payments. In weaker regimes, you can lose the deposit entirely. Always verify the guarantee is in force before paying anything beyond a reservation.

Can I get a mortgage on an off-plan property?

Usually only at completion. Banks lend against an existing, valued asset. Some developers arrange interim financing or offer their own staged-payment plans. The mortgage attaches when the title and final completion certificate are issued.

How long does construction typically take?

18 to 30 months for standard apartment buildings, 12 to 24 months for villas, and longer for large urbanisations with multiple phases. Six-month delays are common; 12-month delays are not unusual.

Can I customise the unit during construction?

Yes, within limits. Most developers allow choice of finishes (flooring, kitchen, bathrooms) up to a fixed cut-off. Structural changes, moving walls, changing electrical layout, are usually negotiable up to early-stage construction.

Do I pay VAT on off-plan property?

Yes. New-build property carries VAT (10% to 25% depending on country) instead of transfer tax. The VAT is invoiced by the developer with each payment milestone.

How do I make sure the property matches what I bought?

Final inspection (the snagging walk-through) before signing the deed at completion. List every defect in writing. Most countries give a one-to-two-year cosmetic warranty and a ten-year structural warranty. Holding back a final tranche of payment until snags are fixed is a strong negotiating position, but only some contracts allow it.

Off-plan property in Europe (2026 guide)

How to buy off-plan property in Europe, payment schedules, developer vetting, country protections. List for free on immio when you sell.

Buying off-plan, a property that does not yet physically exist, is the cheapest way to own a brand-new home in most of Europe, and the riskiest. Get it right and you lock in today's price for delivery in two years, often watching the market move in your favour. Get it wrong and you discover your deposit was unsecured, your developer is insolvent, and the half-built shell is the subject of a five-year court case. This guide explains how off-plan really works in 2026 across the main European markets, what protections you have, and how to vet a developer before signing.

What off-plan means and how the payment schedule works

Off-plan means buying a residential unit that is in development. The contract is between you and the developer. The unit may exist only on architectural plans (early phase) or be partly built (later phase). You commit to buy at a fixed price, with payments spread across construction milestones, and you take ownership at handover.

The standard payment schedule across most European markets follows a similar shape, with country-specific variations.

Reservation deposit: EUR 5,000 to EUR 15,000 paid to take the unit off the market. Usually refundable for a short period (5 to 14 days), then locked in.

Initial deposit at contract signing: typically 10% to 30% of the price, paid within 30 days of the reservation. Spain runs near 10% plus VAT, Portugal at 10% to 30%, Greece often 20%, Italy 15% to 30%.

Milestone payments during construction: 30% to 50% of the price spread across structural completion stages. Common milestones are foundations, structure, roof, weatherproofing, internal walls, and finishes.

Final balance at completion: the remaining 30% to 50%, paid at the notary signing when keys hand over. This is typically when the mortgage attaches.

The schedule varies, but the principle is constant: most of the money flows during construction, before you own the asset. That makes developer vetting and legal protection the most important elements of the transaction.

Why buy off-plan: the upside

Off-plan has structural advantages that explain its enduring popularity.

Lower entry price is the headline benefit. Developers price phase-one units 10% to 25% below comparable resale, partly to seed early sales (banks require pre-sales before releasing construction finance), partly because the buyer carries construction risk. Late-phase units in the same development typically price higher.

Choice of unit and finish. Buying off-plan, you pick the floor, the orientation, the layout, the finish package. By the time the building is finished, the best units are gone.

Mortgage on completion at appreciated value. If the market has risen during construction, your mortgage is a percentage of the higher post-completion valuation, not the original purchase price. That can mean lower effective LTV at completion than you contracted for.

Modern building standards. New-build apartments in 2026 deliver energy-class A or B, modern insulation, EV-charging-ready parking, and 21st-century plumbing. The maintenance and running-cost gap versus a 1960s resale is real and growing.

Why off-plan goes wrong: the downside

Three risk categories dominate the off-plan loss column.

Developer insolvency. A construction company going bankrupt mid-project can mean partial-built shells frozen for years while the courts decide. In jurisdictions without proper buyer protection, deposits are lost. Spain, Portugal, Italy, France and the Netherlands have legislative protection. Bulgaria, Romania, Greece and Croatia have weaker or piecemeal frameworks.

Completion delay. Six-month delays are normal; 12 to 18 months happen often enough that you should plan for one. Causes range from supply-chain delays through planning challenges to developer cash-flow issues. Some contracts include late-completion penalties (typically 0.05% to 0.1% per day of delay), most do not.

Market shift between contract and handover. If prices fall during construction, you have committed to the higher price. If your personal circumstances change, job loss, divorce, currency move, you may not want or be able to complete. Most contracts allow the developer to keep your deposit if you walk away.

Spec changes and snagging disputes. The unit you receive may differ from the one you contracted for, a smaller terrace, a different floor finish, omitted parking. Reputable developers run a snagging period; less reputable ones rush handover. The legal route to enforce specifications can be slow and expensive.

How to vet a developer

The single most important decision in off-plan is choosing the developer. Five checks are worth doing before you sign anything beyond a refundable reservation.

Track record. How many projects have they completed? Are former buyers satisfied? Visit a completed project and look for buyer reviews online (forums, Google reviews, country-specific real-estate forums). Any developer with fewer than three completed projects is a higher-risk choice.

Financial standing. Pull the company filings if possible. In Spain, Portugal, France and Italy, developer accounts are public. A developer with a high debt-to-asset ratio is a red flag.

Bank guarantee and insurance. The legal mechanism that protects you if the developer fails. Different countries call it different things, see the table below. Verify it actually exists, not just that the developer says it does. Ask for the bank reference and the policy number.

Planning permission. Has it been granted, or only applied for? Buying a unit in a development that does not yet have full planning permission is high risk. The risk is not just delay, entire developments have been refused after pre-sales were taken.

Completion certificate timing. When does the developer expect to receive the final completion certificate (the document that legally allows handover)? Is the timeline realistic? Push back on optimistic targets.

Country-specific buyer protections

The 2026 framework varies sharply across Europe.

Country	Buyer protection	What it covers
Spain	Ley 38/1999 (replaces Ley 57/68), bank guarantee or insurance bond mandatory on all off-plan sales	All deposits and milestone payments + interest, refunded if developer fails
Portugal	CPCV contract + bank guarantee in some cases (not universally mandatory)	Refund of payments, but enforcement can be slow without explicit guarantee
Italy	Decreto Legislativo 122/2005, fideiussione (bank guarantee) mandatory on all new-build sales	All buyer payments refunded if developer cannot deliver
Greece	Standard CPCV with notary; no universal deposit guarantee	Limited statutory protection, escrow or bank guarantee must be negotiated
France	VEFA (vente en l'état futur d'achèvement) regime, guarantee of completion mandatory	Guarantees the building is finished even if developer fails
Cyprus	Specific Performance Law, title deeds + sale-of-real-estate provisions	Strong if registered correctly; title-deed delays are a known issue
Bulgaria	No mandatory guarantee, buyer protection by negotiation	Often unprotected; escrow or staged payments tied to building progress is essential
Romania	No mandatory guarantee, registration of forward contract gives some priority	Limited; choose escrow + verified developer carefully
Croatia	Buyer-protection law since 2007, mandatory guarantee on most projects	Refund of payments if developer fails

The takeaway: Spain, Italy and France offer the strongest off-plan protection in 2026. Portugal and Croatia are workable. Greece, Bulgaria and Romania require active risk management, escrow, staged payments tied to verified construction, and careful developer choice.

Best off-plan markets in 2026

Five markets stand out for off-plan opportunity in 2026.

Costa del Sol, Spain continues to absorb new development at scale. Marbella, Estepona, Mijas and Fuengirola see ongoing supply with prices rising 5% to 10% annually. Strong buyer protection under Ley 38/1999. Browse Spanish properties for sale for current inventory.

Athens regeneration zones in Greece are a 2026 story. Districts like Pagrati, Petralona and Neos Kosmos have seen substantial new-build supply targeted at remote workers and Golden Visa investors. Yields and growth both look strong, but Greek off-plan protection is weaker, escrow and developer reputation matter more.

Lisbon and Porto continue to deliver new-build supply in suburban districts. Lisbon Almada, Cascais inland and Porto Vila Nova de Gaia are active. Portuguese protection is moderate, confirm the CPCV terms carefully.

Sofia outskirts in Bulgaria, particularly Mladost, Lyulin and the Vitosha-foothill districts, see strong off-plan delivery aimed at the young-professional market. Yields look attractive but Bulgarian protection is weak; staged payments tied to construction are essential. See the dedicated Bulgaria buying guide for context.

Coastal Croatia offers off-plan supply in Istria and around Zadar and Split. Strong buyer protection under 2007 law. Good for holiday-home buyers and yield investors who can manage seasonality.

Romanian secondary cities: Cluj-Napoca and Bucharest periphery in particular, have active mid-market off-plan delivery. Yields strong, protection moderate, see the Romania buying guide for full context.

Tax differences versus used homes

Off-plan property usually triggers VAT instead of transfer tax. The numbers matter.

In Spain, off-plan typically pays 10% VAT plus 1.5% AJD (stamp duty) on the price, total 11.5%. A used home in the same region pays 6% to 10% transfer tax. The off-plan tax stack can be slightly higher, slightly lower, or similar depending on region.

In Portugal, new-build typically attracts 6% IMT plus 0.8% stamp, similar to resale.

In Italy, new-build pays 4% VAT for primary residence (versus 2% transfer tax on resale primary), or 10% VAT for second home (versus 9% transfer tax). The new-build cost is slightly higher.

In Greece, new-build VAT (24%) was suspended for most properties in 2024 and the suspension has rolled forward into 2026, so most new-builds currently pay 3.09% transfer tax similar to resale.

In Bulgaria and Romania, the gap between new-build VAT (20% or 19%) and used-home transfer tax (2.5% or sliding) is substantial. Most foreign buyers in these markets prefer resale for that reason.

The full breakdown sits in the property taxes guide.

Practical clauses to negotiate

Five contract clauses make a real difference at closing.

Snagging period and retention. Negotiate a 30 to 60 day snagging period after handover, with 5% to 10% of the final payment held in escrow until snags are fixed. Spanish and Portuguese standard contracts often include this; Eastern European contracts often do not.

Late-completion penalty. Push for 0.05% to 0.1% per day of delay beyond a defined long-stop date. Many developers will agree to a softer version (waiver of community fees during the delay).

Change-of-spec rights. Cap the developer's ability to substitute "equivalent" finishes. Specify brand and model where possible. Require written approval for any change above 5% deviation.

Mortgage subject-to clause. If you plan to mortgage at completion, include language allowing you to walk away with deposit refunded if mortgage finance is refused for documented reasons. Most developers resist this; some accept it for a higher deposit.

Assignment rights. The right to sell the contract to a new buyer before completion. Useful if circumstances change. Some contracts forbid assignment, others allow it for a fee.

Putting it together

Off-plan in 2026 is a genuine value play in markets with strong protection and a credible developer, and a serious risk in markets without them. The hierarchy of decisions: pick a country with mandatory guarantees, pick a developer with a track record, verify the planning and the guarantee in writing, then negotiate the contract clauses that protect you. The price advantage is real, but the protection has to be real too.

Selling a property in Europe? You can list it on immio for free, one active listing at EUR 0, no credit card.

Frequently asked questions

What does off-plan mean?: Off-plan means buying a property before construction is complete, sometimes before it has started. You sign a contract with the developer, pay a deposit, and pay the balance over construction milestones. You take ownership at handover, typically 12 to 36 months after signing.
How much deposit do I pay on an off-plan property?: Initial deposit is typically 10% to 30% of the price. Subsequent payments follow a milestone schedule, foundations, structure, roof, completion. The bulk of the price is usually paid at handover, often via a mortgage.
What happens if the developer goes bankrupt?: This is the central risk in off-plan. Strong markets, Spain, Italy, Portugal, require developers to provide bank guarantees or insurance bonds covering buyer payments. In weaker regimes, you can lose the deposit entirely. Always verify the guarantee is in force before paying anything beyond a reservation.
Can I get a mortgage on an off-plan property?: Usually only at completion. Banks lend against an existing, valued asset. Some developers arrange interim financing or offer their own staged-payment plans. The mortgage attaches when the title and final completion certificate are issued.
How long does construction typically take?: 18 to 30 months for standard apartment buildings, 12 to 24 months for villas, and longer for large urbanisations with multiple phases. Six-month delays are common; 12-month delays are not unusual.
Can I customise the unit during construction?: Yes, within limits. Most developers allow choice of finishes (flooring, kitchen, bathrooms) up to a fixed cut-off. Structural changes, moving walls, changing electrical layout, are usually negotiable up to early-stage construction.
Do I pay VAT on off-plan property?: Yes. New-build property carries VAT (10% to 25% depending on country) instead of transfer tax. The VAT is invoiced by the developer with each payment milestone.
How do I make sure the property matches what I bought?: Final inspection (the snagging walk-through) before signing the deed at completion. List every defect in writing. Most countries give a one-to-two-year cosmetic warranty and a ten-year structural warranty. Holding back a final tranche of payment until snags are fixed is a strong negotiating position, but only some contracts allow it.

List your property for free on immio — one active listing at €0, no credit card.