New-build property, before it's even finished.
We help you choose in off-plan and newly completed residential projects. We vet the developer, the payment plan and the contract before you pay a single instalment.
What does buying off-plan mean?
Off-plan, you sign the contract while the home is still being built, or before building has even started. You usually pay the price in instalments as construction progresses.
The upside
- You choose early: floor, orientation, layout, balcony.
- You don't pay the price at once, but in step with construction.
- New services, modern energy performance, a builder's warranty.
- For a while you can still request small changes to the interior.
What to watch
- Handover can slip, and your plans need to allow for that.
- The finished home can differ from the brochure images if the specification isn't detailed enough.
- Instalments are due even if your own circumstances change.
- The developer's finances affect the whole project.
Before each instalment we check how far the build has got and that the money goes into the project escrow account.
What you pay and what you check, stage by stage
Click a stage. For each one you'll see what happens on site, how much you might have paid by then, and what to look out for.
Plans drawn, sales open
The developer has bought the plot, plans are being drawn up and sales begin. Choice is at its widest, but so are the question marks.
- The plot's title and encumbrances
- The developer's company details and past projects
- What happens to the deposit if the project never starts
Building permit and sale contract
The final building permit is in place and the sale contract is signed. This is the key document: any later dispute is settled by it.
- Whether the building permit is final
- Long-stop date, delay penalties, detailed specification
- Where the money goes: lawyer's escrow, escrow account or bank guarantee
Construction begins
Foundations, basement, underground parking. This stage is the first sign of whether the developer is keeping to schedule.
- Whether work is really progressing: site visit, photos
- Whether the schedule is being kept
- That you only pay for completed work
Structure and roof complete
Interior work starts: walls, services, windows. This is when you choose finishes and fittings, and when small changes can be requested.
- A site visit inside the unit
- Requested changes in writing, with price and deadline
- Materials as per the specification
Snagging and keys
The occupancy permit is issued, we inspect the home, record any defects and you collect the keys.
- Snag list in writing, with repair deadlines
- Occupancy permit, how the warranty works
- The building's deed of foundation, expected service charge
Sample schedule, for guidance only. Actual percentages, dates and terms are always set by the project's contract.
Ten questions before you pay a deposit
We go through these on every project. If you'd like to follow along, tick off the ones you already have answers to.
Nothing checked yet.
You have an answer to every point. Before you sign, send us the draft contract too.
The same logic, different rules
The checks are similar everywhere, but the guarantees and costs differ from country to country.
New homes in Budapest
- Payments usually go into a lawyer's escrow, tied to construction progress.
- We check the final building permit and the plot's encumbrances.
- Some banks lend on homes under construction, with drawdowns following the build.
- Transfer duty applies on purchase.
Off-plan in Dubai
- Projects are registered with the DLD and RERA, and payments go into an escrow account.
- The DLD registration fee is 4% of the price as a rule.
- Instalment plans are common, in some projects continuing after handover.
- Resale before handover only under the SPA and the developer's conditions.
New builds on the Costa del Sol
- You need an NIE number to buy; we sort it out at the start.
- New builds carry VAT and stamp duty, not ITP.
- We require a bank guarantee or insurance from the developer for stage payments.
- At handover we also check the first occupation licence.
What you pay, and what protects your money?
Off-plan, two questions decide everything: what is the total cost, and what happens to your money if the project stalls. The three markets answer them very differently.
| Aspect | Budapest | Dubai | Costa del Sol |
|---|---|---|---|
| Tax in the price | 5% VAT on new homes (flats up to 150 m², houses up to 300 m²). The current rule runs to 31 December 2026; for projects permitted by end-2026 it continues until end-2030.Hungarian VAT Act, as at September 2026 | The purchase price of a home is generally not subject to VAT; 5% VAT applies to some fees.UAE VAT rules, 2026 | 10% IVA on new-build homes (instead of ITP).Spanish VAT law, 2026 |
| Duty and registration | 4% transfer duty. New homes are exempt up to HUF 15m, with no relief above HUF 30m, so at Budapest prices the full 4% usually applies.Hungarian Duties Act, 2026 | 4% DLD fee; for off-plan, Oqood registration, handled by the developer.Dubai Land Department, 2026 | 1.2% AJD stamp duty in Andalusia, plus notary and land registry (estimate: about €900–1,700 together).Junta de Andalucía, 2026 |
| Protection of payments | Escrow isn't mandatory for every project. We ask for a lawyer's escrow, a bank guarantee or progress-linked payments in the contract.Contractual protection | A mandatory, project-specific escrow account; funds are released as certified construction progresses.Dubai Law No. 8 of 2007 | The developer must provide a bank guarantee or insurance for stage payments.Ley 38/1999 (LOE), since 2016 |
| Financing | Bank mortgage, generally with at least 20% down. The Otthon Start scheme offers a 3% fixed-rate loan (up to HUF 50m) for homes under HUF 100m and HUF 1.5m/m², with as little as 10% down.MNB rule; Otthon Start, since 2025 | Usually developer payment plans, some with post-handover instalments. Mortgage registration: 0.25% of the loan.DLD fee schedule, 2026 | Spanish mortgages are available to non-residents, typically with a larger deposit.Bank practice |
| At handover | Occupancy permit, snag list, warranty. | Snagging inspection, title deed issued by the DLD. | First occupation licence (LPO), notarial deed, registration. |
Indicative summary, not legal or tax advice. Rules may change; a decision on the 5% Hungarian housing VAT is expected in autumn 2026. On every project we check the rules in force at signing.
What happens when you send us a project?
The report is prepared by Réka Urbán and Dr Georgina Gősi, with a local lawyer for projects abroad. Fees: agreed in writing, up front.
- Collecting the documents1–2 days
Brochure, floor plan, specification, payment plan, draft contract.
- Developer and permitsWeek 1
Company details, past deliveries, building permit, plot encumbrances; in Dubai, RERA and escrow registration.
- Legal review of the contractWeeks 1–2
Long-stop date, penalties, withdrawal, guarantees, changes, resale.
- Report and negotiating pointsWeek 2
A written summary and a list of what to ask the developer before signing.
- With you until handoverTo handover
If you buy: progress checks before instalments, snagging, defect list.
- Developer's company details, accountsClear
- Past delivery deadlinesClear
- Final building permitClear
- Plot encumbrances, mortgage releaseQuestion
- Protection of paymentsQuestion
- Level of detail in the specificationMissing
- Delay penalty and withdrawalClear
- Expected service chargeQuestion
For every “Question” and “Missing” line we write down what to ask the developer, and when we'd advise you not to sign.
Buying off-plan in brief
What happens if handover is late?
The contract decides. That's why we check the long-stop date, the delay penalty and when you can withdraw in advance. If your plans need a fixed date, we build in a buffer.
Can I get a mortgage on a home under construction?
In Budapest some banks lend on them, with drawdowns following the build. Expect to put down at least 20%. We check your options with our mortgage partner before any deposit.
Can I request changes to the interior?
In many projects, yes, up to a certain stage. We always record changes in writing, with price and deadline.
Do you only work on Budapest projects?
No. We also help in Dubai and on the Costa del Sol, with local lawyers and a plain-language summary.
What happens to Hungary's 5% housing VAT from 2027?
Under current rules the 5% rate applies until 31 December 2026, and until the end of 2030 for projects that received a building permit by the end of 2026. The government may decide on an extension in autumn 2026. Before signing, we check which rule applies to the project and what happens if the rate changes.
Can Otthon Start be used for a home under construction?
Yes, if both you and the property meet the conditions: a price of at most HUF 100m and HUF 1.5m/m², a loan of up to HUF 50m at a 3% fixed rate. Many new Budapest homes are above these limits, so we check this with our mortgage partner before any deposit.
In Dubai, do I pay the developer directly?
No need. Payments go into a project-specific escrow account registered with the DLD, and the developer can only access them as certified construction progresses. We check that the escrow number in the contract and on the invoice matches the register.
In Spain, what protects me if the developer goes bust?
By law, the developer must cover stage payments made during construction with a bank guarantee or insurance, with an individual guarantee certificate. We ask for it before every payment and advise against paying until you have it.
Off-plan buying in depth
Payment plans, guarantees and pitfalls in all three markets.
All articles
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Found a project? Let's review it before you pay a deposit.
Send us what you've received so far. We'll tell you what's missing, what to ask, and whether we think it's worth going further.
What's worth sending?
- The project name or link
- The floor plan of the unit you like
- The developer's payment plan
- The draft contract, if you have it
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