Key Takeaways
- New builds are taxed at 11.5% (IVA + AJD); resale at 7% (ITP). On a €400,000 property that’s a €18,000 tax difference in favour of resale.
- New builds carry 10-year structural warranties and meet modern energy standards. Resale properties — especially those from the 1980s–2000s boom — often need significant renovation on top of purchase costs.
- Off-plan purchases allow staged payments over 12–24 months. But they carry developer risk: delays, final product differing from renders, and no ability to physically inspect before buying.
- Resale buyers typically negotiate 5–10% off asking price. Developers rarely discount headline prices, though some flexibility on upgrades or extras is possible.
- Prime established locations are almost exclusively resale. New developments are built where land exists — often car-dependent urbanizaciones away from town centres.
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New Build vs Resale Property in Spain: Which Is Right for You?
Different process, different costs, different risks. Here's how to decide between buying new construction and an existing property on the Costa del Sol.
The Quick Comparison
| Factor | New Build | Resale |
|---|---|---|
| Purchase tax | 11.5% (IVA + AJD) | 7% (ITP) |
| Condition | Brand new, warranties | Varies widely |
| Negotiation | Limited | Significant |
| Timeline | 12-24 months (off-plan) | 6-12 weeks |
| Customization | Sometimes possible | Renovate yourself |
| Location | Where developers build | Where owners sell |
Neither is universally better. The right choice depends on your priorities, timeline, and what's actually available.
New Builds: What You're Getting
The Upside
Modern Standards
New builds meet current building codes: better insulation, energy efficiency, electrical capacity for modern life. Air conditioning, underfloor heating, and smart home wiring are standard in quality developments.
Warranties
Spanish law requires:
- 1 year: Finishing defects
- 3 years: Habitability issues (plumbing, waterproofing)
- 10 years: Structural defects
Developers must have insurance backing these warranties.
No Renovation Needed
Move-in ready. No outdated kitchens, questionable wiring, or previous owner's "creative" improvements to deal with.
Payment Staging
Off-plan purchases let you pay in stages: 10-30% at reservation, progress payments during construction, balance at completion. Spreads the cash requirement over 12-24 months.
The Downside
Higher Taxes
11.5% (10% IVA + 1.5% AJD) versus 7% ITP on resale. On a €400,000 property, that's €46,000 versus €28,000—a €18,000 difference.
Location Constraints
Developers build where land is available and planning permits allow. That's often not in established, walkable areas. Many new developments are car-dependent urbanizaciones.
Off-Plan Risk
Buying before construction completes means:
- Developer could delay or fail
- Final product might differ from renders
- Market could move against you
- You can't see exactly what you're buying
Limited Negotiation
Developers have price lists. Some flexibility on upgrades, but the headline price rarely moves much.
Resale: What You're Getting
The Upside
Lower Purchase Tax
7% ITP in Andalucía. Significant savings on the same purchase price.
Established Locations
Resale properties exist everywhere—including the prime locations where no new land is available. Want to be walking distance to the centro? Resale is often your only option.
What You See Is What You Get
No renders, no promises. Walk through, inspect, decide. The apartment exists. The view exists. The neighbors exist.
Negotiation Room
Private sellers have motivations beyond maximizing price: divorce, inheritance, relocation, cash needs. There's usually room to negotiate 5-10% off, sometimes more.
Faster Timeline
No construction delays. From offer to keys in 6-12 weeks is typical.
The Downside
Unknown History
Previous owners may have done unpermitted work. Debts may be attached. Structural issues may be hidden. Due diligence is essential.
Outdated Everything
Many resale properties on the Costa del Sol date from the 1980s-2000s boom. Expect:
- Single-glazed windows
- Poor insulation
- Inadequate electrical capacity
- Dated bathrooms and kitchens
Budget for renovation on top of purchase price.
Community Issues
Established communities sometimes have:
- Deferred maintenance
- Upcoming special assessments
- Problem owners
- Outdated rules
Read the community meeting minutes before buying.
Cost Comparison: Real Numbers
Scenario: €400,000 Budget
Option A: New Build at €400,000
| Cost | Amount |
|---|---|
| Purchase | €400,000 |
| IVA (10%) | €40,000 |
| AJD (1.5%) | €6,000 |
| Notary + Registry | €1,700 |
| Lawyer | €3,500 |
| Total | €451,200 |
Move-in ready. Modern finishes. Warranties.
Option B: Resale at €350,000 + €50,000 Renovation
| Cost | Amount |
|---|---|
| Purchase | €350,000 |
| ITP (7%) | €24,500 |
| Notary + Registry | €1,400 |
| Lawyer | €3,000 |
| Renovation | €50,000 |
| Renovation IVA (10%) | €5,000 |
| Total | €433,900 |
Custom finishes to your taste. Potentially better location.
Difference: ~€17,000 saved with resale + renovation route.
But: Renovation takes time, causes stress, and can exceed budget. New build is turnkey.
Off-Plan Buying: The Process
If you buy before construction is complete:
1. Reservation (€3,000-€10,000)
Secures your unit. Usually deducted from the deposit.
2. Private Contract + Deposit (10-30%)
Binding agreement. Your deposit should be protected by a bank guarantee or insurance—this is required by Spanish law for off-plan sales.
3. Stage Payments
Developers may require payments as construction progresses. Typically tied to milestones: foundations, structure complete, roof on, etc.
4. Completion
Final payment when the property is finished and licencias granted. The notary won't proceed without:
- License of First Occupation (licencia de primera ocupación)
- Energy certificate
- Ten-year structural insurance (seguro decenal)
Key Protections
Bank Guarantee (Aval Bancario)
Since the 1968 law (updated 2015), developers must guarantee your deposits with a bank or insurance. If the developer fails, you get your money back.
Always verify this guarantee exists and covers your full deposits.
Red Flags
- Developer resists providing bank guarantee documentation
- Payment schedule heavily front-loaded
- Vague completion dates without penalties
- Pressure to sign quickly
- Off-plan "deals" significantly below market price
Location Analysis: Where Each Makes Sense
New Builds Dominate
Nueva Andalucía / Los Flamingos / La Quinta
Golf-adjacent developments, space for new projects, modern urbanizaciones.
Estepona (outskirts)
Major development activity. New townhouse and villa projects.
East Málaga (Rincón, Vélez-Málaga)
More land, lower prices, growing new build inventory.
Resale Dominates
Marbella Old Town / Centro
No land for new development. Historic buildings, character properties.
Puerto Banús immediate area
Established. Any "new" is redevelopment of existing.
Fuengirola / Benalmádena town centers
Dense, established, limited new construction.
Nerja / Frigiliana
Protected areas, limited development, resale is the market.
Mixed Markets
Estepona town
New marina developments alongside traditional resale.
Mijas Costa
Both new urbanizaciones and established communities.
The Renovation Reality
If you buy resale planning to renovate:
Budget Realistically
| Work | Typical Cost |
|---|---|
| Kitchen remodel | €8,000-€25,000 |
| Bathroom remodel (each) | €4,000-€12,000 |
| New windows/doors | €8,000-€20,000 |
| AC installation | €3,000-€8,000 |
| Full rewiring | €5,000-€15,000 |
| Pool installation | €25,000-€50,000 |
A "light refresh" (paint, fixtures, appliances) might be €10,000-€20,000.
A serious update (kitchen, bathrooms, windows) runs €40,000-€80,000.
A gut renovation can exceed the purchase price.
Timeline Realistically
- Getting quotes: 2-4 weeks
- Permits (if needed): 4-12 weeks
- Contractor availability: Varies wildly
- Actual work: 2-6 months depending on scope
Don't plan to renovate and move in simultaneously. It rarely works.
Permits
Cosmetic work (paint, fixtures) doesn't need permits.
Structural changes, facade modifications, or anything affecting common elements requires community approval and often a licencia de obra.
Decision Framework
Choose New Build If:
- You want turnkey, move-in ready
- Modern energy efficiency matters
- You're flexible on exact location
- You can wait 12-24 months (off-plan)
- You don't want renovation stress
- Developer reputation is solid
Choose Resale If:
- Location is your priority
- You want negotiating leverage
- Lower purchase taxes matter
- You're comfortable managing renovation
- The right property exists now
- You want established community character
Choose Resale + Renovation If:
- You have specific tastes new builds don't satisfy
- You find a property at the right price in the right place
- You have renovation budget and patience
- You can live elsewhere during work
The Second-Order Question
Beyond the spreadsheet: what kind of experience do you want?
New builds attract a certain buyer profile. Your neighbors will be recent arrivals, likely similar demographics. Shared amenities are pristine but soulless. The community is forming, not formed.
Established resale communities have character—for better and worse. Long-term owners, established dynamics, known problems and known pleasures. You're joining something that exists.
Neither is right or wrong. But it shapes daily life more than most buyers consider.
Related:
- Buying Property on the Costa del Sol: Complete Guide
- Property Costs in Spain: Complete Fee Breakdown
Market conditions as of February 2026.
Related Guides
Frequently Asked Questions
Do I need a gestor for this process?
For most administrative procedures in Spain, a gestor simplifies the process significantly. They handle paperwork, book appointments, and know the practical requirements that websites often do not mention. Fees typically range from EUR 50-150 per procedure.
What documents do I need?
At minimum, you will need your NIE (or passport for initial procedures), proof of address (padron certificate or utility bill), and documentation specific to the procedure. Always bring originals and copies of everything.
How long does this process take?
Processing times vary by office and procedure. Simple administrative tasks take days to weeks. Residency, tax, and property matters can take weeks to months. Having all documentation correct from the start prevents delays.
Where can I get help in English?
English-speaking gestoria offices on the Costa del Sol handle most expat administrative needs. See our guide to English-speaking gestorias for recommendations. Many town halls in tourist areas also have some English-speaking staff.
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