Off-plan purchases in Spain remain a minefield for investors, even in 2026

An English couple, both in their fifties, decided to build a seaside villa in Tarragona before retirement. Everything appeared ideal: a reputable developer, an experienced lawyer, clear completion dates set for spring 2025. They sold their Barcelona apartment and invested 70 per cent of its value. On moving day, instead of a home, they received an empty shell. Windows, doors, kitchen, bathrooms, swimming pool—nothing. Nearly two years have passed, the house remains unfinished, and their money is frozen.

This is not a story from 2008. After the crash then, tens of thousands of buyers lost their savings on unfinished developments. It seemed the lessons had been learned. But the system has not changed. Developers know that delaying a project by a year or two can be done with impunity whilst court proceedings drag on for months. Even the Arras contract, which is supposed to protect the buyer, proves to be "a useless piece of paper" when things go wrong.

Most troublingly, in this case the developer failed to provide mandatory bank guarantees for staged payments—basic protection that was simply ignored.

The conclusion is straightforward: do not trust glossy developer websites and smooth contracts. Demand proof that your money is protected. Off-plan purchases in Spain are always a risk, even if you hire the best lawyers.

Source: Spanish Property Insight