Date: 5 November 2025
Headline: Spain’s Supreme Court has reaffirmed that, under Ley 57/1968, legal interest on off-plan deposits accrues from each payment until the buyer is actually reimbursed, even if the developer has become insolvent. The (bank/insurer) guarantee is autonomous and is not curtailed by the developer’s insolvency.
Why this matters
Spain’s off-plan system relies on mandatory guarantees to shield consumers if a project fails. The Court doubled down on that protective purpose: the guarantor cannot invoke the developer’s insolvency to stop interest. The goal is to put the buyer where they would have been if delivery had been timely.
What the Court said (plain English)
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Autonomous guarantee, not an accessory surety. Guarantees under Ley 57/1968 stand on their own; classic limits of suretyship (“the surety cannot owe more than the debtor”) do not reduce the guarantor’s duty here.
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Continuing, remuneratory interest. Legal interest runs from each deposit and keeps running until the buyer is actually reimbursed. Any insolvency “interest stop” applies to the insolvent developer, not to a solvent guarantor.
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Practical upshot. Banks/insurers that guaranteed advances must return principal + legal interest up to the refund date.
The case in brief
Buyers made off-plan payments. The developer later entered insolvency. There was a collective guarantee policy. The first and second instances capped interest at the insolvency date. The Supreme Court reversed on interest and set the end date at actual repayment, leaving the rest intact and with neutral costs on cassation.
Strategic value for consumers and market confidence
This judgment consolidates a buyer-protective line of case-law: a purposive reading of Ley 57/1968 to ensure full restitution and market trust in Spain’s off-plan sector. It removes a recurring defence (stopping interest at insolvency) and aligns incentives: if money is held too long, the carrying cost stays with the guarantor, not the consumer.
Key takeaways
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Buyers: Spain remains one of the safest markets for off-plan purchases thanks to statutory guarantees and consistent Supreme Court jurisprudence. Keep your proof of payments—interest from day one is yours.
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Banks/insurers: Because the guarantee is autonomous, the developer’s insolvency does not cap interest exposure. Reflect this in reserving and claims handling.
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Developers/agents: Guarantees are not box-ticking; they are the backbone of market credibility. Late delivery shifts real cost to guarantors and reputational risk to projects.
FAQ
Does the developer’s insolvency stop legal interest?
No. Interest continues until the buyer is reimbursed; the insolvency “stop” affects the developer, not a solvent guarantor.
What law protects off-plan buyers in Spain?
Ley 57/1968, developed by later legislation and case-law; the guarantee regime is now regulated under Law 20/2015.
What should I check before paying an off-plan deposit?
That there is a valid individual or collective guarantee, that the building licence exists, and that the contract sets delivery deadlines and interest terms.
If you’d like a quick check: send your contract and proof of payments; we’ll review them free of charge and explain your position and likely interest.