New build vs resale property in Spain — an honest buyer's comparison

On the Spanish costas, the same budget often buys either a brand-new apartment in a development with a pool, or a larger, older resale closer to the beach. Neither is universally better — the right choice depends on your tax position, your timeline and how you plan to use the property.

Purchase tax: the biggest structural difference

Resale homes carry transfer tax (ITP) set by the region — 7% in Andalusia, 10% in the Valencian Community, 8% in Murcia. New builds bought from a developer carry 10% VAT (IVA) instead, plus stamp duty of roughly 1.2–1.5%. On the Costa del Sol this makes new builds about 4–4.5 percentage points more expensive to buy; on the Costa Blanca the gap narrows to around 1.5 points.

Timing and certainty

• Resale: you see exactly what you buy, and keys can follow in six to twelve weeks
• New build (ready): same speed as a resale, with the developer's first-transfer guarantees
• New build (off-plan): you buy from plans; delivery typically 18–30 months, with stage payments protected by a bank guarantee — always verify the guarantee exists before paying anything
• Off-plan risk is concentrated in developer solvency and construction delays; resale risk is concentrated in the property's legal and physical condition

Running costs and condition

New builds come with a ten-year structural warranty (seguro decenal), modern insulation and an A or B energy rating, which cuts air-conditioning bills meaningfully in July and August. Resales typically rate D–G and may need €10,000–€60,000 of renovation to reach the same standard — money buyers routinely forget to deduct from the price gap. On the other hand, new resort-style communities carry higher monthly community fees because of pools, gyms, spas and security.

Price and negotiation

Developer prices are fixed and identical for every buyer in the same phase — your negotiating room is usually in extras, furniture packs or legal-fee contributions, not headline price. Resale prices are individually negotiable and motivated sellers exist, particularly on properties listed for many months. In a rising market, well-bought resales in established locations have historically matched or beaten new-build appreciation, because you're paying for location rather than newness.

Rental income

Tourist tenants pay a clear premium for new-build finishes, modern kitchens and communal pools, and new developments increasingly sell with a tourist licence and professional rental management in place. Resales can yield equally well but require you to arrange the licence, furnishing and management yourself — and some older communities restrict holiday letting in their statutes.

Which should you choose?

• Want to use it this summer and see exactly what you're buying: resale
• Hands-off investment with licence and management ready: licensed new development
• Lowest purchase tax and modern energy performance in Andalusia: resale can actually win after the 7% ITP vs 10% VAT comparison
• Maximum space and established location for the money: resale
• Lock in today's price on a rising development and pay in stages: off-plan — with the bank guarantee checked by your lawyer

Many of our buyers shortlist both: a finished new-build apartment and two or three resales in the same town, then decide after viewing. Tell us your budget and towns and we'll put that shortlist together for you.