Off-plan: you pay before the home exists
A large share of what sells in Estepona is new build, and that splits the purchase into two moments separated by months or years. Reservation and stage payments come first; the deed and the mortgage come at the end. In between there is nothing to lend against, and no bank lends against nothing.
So the stage payments come out of your savings, not out of financing. And the mortgage offer you were shown when you reserved is not necessarily the one you sign: it gets assessed again against the conditions at completion. Better to know that when you reserve than to find out at the end.
There is also a protection a lot of buyers never claim: money paid on account has to be covered by a bank guarantee or insurance policy and held in a designated account. If that is not in the contract, it is the first thing to raise.
New build is taxed differently
There is no transfer tax on a new home. It is VAT at 10% plus stamp duty at 1.2%, which is Andalusia's general rate — 11.2% between them, and money you need in addition to the deposit.
Buy resale instead, which is what most of the old town is, and you would be back to 7% transfer tax with no VAT and no stamp duty on the purchase. Andalusia's reduced rates, all of them conditional on the property being your main home, only exist on that side.
What we do while it is being built
The gap between reserving and completing is exactly when most buyers find they have nobody to ask. We read the purchase contract before you sign it, check the guarantee on your stage payments actually exists, and arrive at completion with the financing already assessed rather than starting from scratch.
Documents and status live in the client area, so you are not reconstructing the purchase by email every time the developer moves a date.
Areas we cover
Old town. Estepona proper, refurbished streets and resale housing. Transfer tax territory, not VAT.
Nueva Estepona and the beachfront. The new-build strip along the sea. Off-plan, stage payments and phased delivery: a different sum and a different clock.
Cancelada and Buenas Noches. Between Estepona and San Pedro, gated developments and recent construction. A mix of residents and second homes.
El Paraíso and Atalaya. On the Benahavís boundary, golf and villas. Higher figures and files that look more like Marbella's.
Off-plan contracts read before you sign them
Stage-payment guarantees checked, not assumed
Financing assessed again in good time for completion
Frequently asked questions
When is the mortgage actually arranged on an off-plan purchase?
At completion. What happens at reservation is a feasibility study, so you know the purchase holds together; the binding offer is assessed against the conditions on the day you sign the deed.
Is my deposit protected if the developer fails?
It should be. Money paid on account must be covered by a bank guarantee or insurance and held in a designated account. Check the contract says so before you transfer anything.
Does new build cost more in tax?
It is charged differently. New build is VAT at 10% plus 1.2% stamp duty; resale is transfer tax at 7% with neither of the other two on the purchase.
Can I follow the purchase from abroad?
Yes. Documents and the status of each step are in the client area, and the signing itself can be handled with a power of attorney.