New Build or Resale in Spain? Taxes, Protections and How to Choose
Off-plan, key-ready or an established home? How the taxes, payments and protections differ — and the questions to ask before you choose.
- New builds pay 10% IVA plus 1.2% stamp duty; resale homes pay 7% transfer tax in Andalucía.
- Off-plan deposits must be held in a separate account and protected by a bank guarantee or insurance.
- New homes come with a 10-year structural insurance (seguro decenal).
- Resale homes offer established locations, bigger plots and immediate use — but check licences carefully.
- Off-plan lets you spread payments and choose finishes, but you wait and you buy from plans.
In this guide
Costa Del Sol has one of the busiest new-build markets in Spain, particularly along the New Golden Mile between Marbella and Estepona. At the same time, many of the most sought-after addresses — the Golden Mile, Sierra Blanca, the heart of Nueva Andalucía — are almost entirely resale. Which route suits you depends on what you value most.
Three Ways to Buy
- Off-plan — you buy before or during construction, paying in stages, and complete when the building is finished.
- Key-ready new build — finished, never lived in, bought from the developer.
- Resale — a home that has been owned before, bought from a private seller.
You can browse both on our site: new developments and homes for sale.
The Tax Difference
| New build (developer's first sale) | Resale | |
|---|---|---|
| Main tax | IVA 10% | Transfer tax (ITP) 7% in Andalucía |
| Stamp duty | AJD 1.2% | — |
| Total costs, typically | About 12–13% | About 8–10% |
So a new build costs roughly three to four percentage points more in tax. Our guide to buying costs in Marbella has worked examples.
How Off-plan Payments and Protections Work
A typical off-plan purchase starts with a reservation fee, then a private contract with around 20–30% paid in stages during construction (each with IVA), and the balance at completion. Schedules vary by development.
Spanish law protects those stage payments. Under the Building Act (Ley 38/1999, as amended in 2016), the developer must:
- Pay your money into a separate, dedicated bank account for the development.
- Back every amount you pay with an individual bank guarantee or insurance policy, covering your payments plus legal interest if the building isn't finished or licensed on time.
New homes also carry a 10-year structural insurance (seguro decenal) covering damage to the structure, alongside shorter legal guarantees for finishes and installations. At handover, do a thorough snagging inspection and put any defects to the developer in writing.
Pros and Cons
New Build and Off-plan
- For: modern design and energy efficiency, communal facilities, low maintenance, choice of finishes, payments spread over the build, structural insurance.
- Against: higher taxes, a wait of often two years or more for off-plan, buying from plans and show homes, and newer locations that are still maturing.
Resale
- For: established neighbourhoods and prime locations, larger plots, what-you-see-is-what-you-get, immediate use or rental, lower purchase tax, room to negotiate.
- Against: possible renovation costs, older installations, and more legal checking — particularly of extensions and licences.
Questions to Ask before you Choose
- How soon do you want to use or let the property?
- Is a specific established area more important than the property's age?
- Would you rather spread payments or complete in one go — and does a mortgage fit either?
- How much time and appetite do you have for renovation?
- For off-plan: what's the developer's track record, and have they delivered on time before?
Questions – Answered
Short answers to the questions we're asked most on this topic. If yours isn't here, ask us.
In tax, yes. A developer's first sale carries 10% IVA plus stamp duty (1.2% in Andalucía), against 7% transfer tax on a resale home — so total buying costs are about 12–13% compared with 8–10%.
The law requires developers to hold buyers' payments in a separate account and back each payment with an individual bank guarantee or insurance. Always ask for the guarantee certificate and have your lawyer check it before paying.
A compulsory 10-year insurance on new homes in Spain that covers structural damage.
Neither is automatically better. Resale homes often sit in the most established, sought-after locations; new builds offer modern specifications and lower maintenance. The right choice depends on location, timing and how you plan to use the home.
Speak to the PACE team directly
More Guides
BuyingWhat Does it Cost to Buy a Property in Marbella? Taxes and Fees In 2026
Every tax and fee on top of the purchase price — resale and new build — with worked examples, so there are no surprises at the notary.
Read the guide
BuyingHow to Buy Property in Spain: The Complete Guide for International Buyers
From your NIE to the keys: every step of buying a home in Spain, the taxes and costs to budget for, and the mistakes international buyers most often make.
Read the guide
FinanceSpanish Mortgages for International Buyers: How They Work In 2026
How much a Spanish bank will lend you as a resident or non-resident, fixed or variable, what you pay and what the bank pays — and how to prepare so it doesn't hold up your purchase.
Read the guideYour Property on Costa Del Sol – Handled End to End
One boutique team for every stage — from finding the right home to selling it, letting it or making it new again