Buyers considering a first Spanish property purchase quickly run into a fundamental question: new-build or resale? The answer turns on tax costs, timing, legal risk and personal planning — not on marketing.
The basic financial logic: IVA versus ITP
New-build attracts 10% IVA (VAT) on the purchase price, applied uniformly across Spain regardless of autonomous community. Resale property is subject instead to Impuesto de Transmisiones Patrimoniales (ITP), the transfer tax, which varies by region: in the Comunitat Valenciana (covering Costa Blanca locations such as Jávea and Altea) the current rate is 10%; in Murcia (where Águilas is located) it is 8%; and in Andalusia (Costa del Sol, Mijas) it is 7%. On top of either category, budget for notary fees (roughly 0.1–0.5% of the purchase price), land-registry inscription (roughly 0.1–0.25%) and legal representation (typically 1% or a fixed fee).
In practice: on a €400,000 new-build apartment, tax and ancillary costs alone can easily reach €45,000–€55,000 above the asking price. Factor that into your budget from the outset.
New-build: advantages and risks
New-build divides into two categories: off-plan (purchased before or during construction) and key-ready (the building is complete and holds a habitation certificate). With off-plan, the initial payment is typically a 20–30% deposit, with the balance due on completion. Spanish law requires that all payments made before completion are covered by a bank guarantee or insurance policy — verify this in writing before signing anything. The period between signing the purchase contract and receiving the keys ranges, in practice, from six months to more than two years.
New-build also carries statutory structural warranties: ten years for structural defects, three years for installations and one year for finishes. Resale property carries no equivalent guarantees.
Helvet Green — Las Lagunas de Mijas
Helvet Green in Las Lagunas de Mijas (municipality of Mijas, Costa del Sol) illustrates the price range that a single new-build project can cover. Apartments, penthouses and ground-floor units with one to three bedrooms are priced between €248,000 and €1,000,000. The development includes a swimming pool. Las Lagunas is approximately ten minutes by car from the beaches of Fuengirola and just over half an hour from Málaga Airport (AGP). The spread of more than €750,000 between the cheapest and most expensive unit makes the tax arithmetic concrete: a €248,000 apartment carries an IVA liability of €24,800; a €1,000,000 unit carries €100,000.
Residencial Laguna Azul — Los Montesinos
Residencial Laguna Azul in Los Montesinos (province of Alicante, near Torrevieja) is a three-bedroom villa priced at €485,000. Los Montesinos is roughly 25 minutes by car from Alicante-Elche Airport (ALC) and a comparable distance from the Orihuela Costa beaches. At this price under the new-build regime, IVA amounts to €48,500. Adding notary, registration and legal fees — allow roughly 1.5–2% — brings the total additional purchase cost to approximately €55,000–€57,000 on top of the €485,000.
Levansur Home Six — Águilas
Levansur Home Six is located in Águilas, a coastal municipality in the Region of Murcia on the Costa Cálida. The four-bedroom villa has a swimming pool and is listed at €405,000. Águilas is roughly 1 hour 15 minutes by car from Murcia-San Javier Airport (MJV) and just over an hour from Alicante. Murcia applies 8% ITP on resale property; new-build in the same region attracts the standard 10% IVA. The difference per €100,000 of purchase price is €2,000 — on €405,000, that translates to €8,100 less in tax on a resale purchase compared with new-build.
Resale property: lower tax, different risks
Resale property carries a lower tax rate in most Spanish regions, and you can physically inspect the property before committing. However, it comes with a different risk profile: latent defects, outstanding community-of-owners debts, irregularities in the original building licence (a recurring issue in parts of the Costa Blanca and Costa del Sol) and an energy certificate that typically scores worse than new-build. An independent structural survey — costing roughly €300–€800 depending on the property — is not optional on a resale purchase.
Chalet Villa Paraiso — Altea
Chalet Villa Paraiso in Altea (Costa Blanca Norte) is a four-bedroom villa priced at €2,090,000. Altea is approximately 55 minutes from Alicante-Elche Airport. At this price, new-build IVA amounts to €209,000. Resale ITP in the Comunitat Valenciana at 10% on the same purchase price also produces €209,000 — the tax burden is identical in this case. The decision between new and resale at this level therefore rests on warranties, the condition of the property and the depth of legal due diligence required.
Casa Bellavista — Jávea
Casa Bellavista in Jávea (also Costa Blanca Norte, province of Alicante) is a five-bedroom villa priced at €3,100,000. Jávea is roughly 95 kilometres from Alicante and has its own harbour and several beaches within the municipal boundary. At €3,100,000 and 10% IVA, the tax liability is €310,000 — identical to ITP at 10% in the Comunitat Valenciana on a resale purchase at the same price. A buyer of a resale villa at this level must, however, account for potential renovation costs, energy-label compliance obligations and the completeness of historical planning documentation.
What drives the decision?
New-build offers certainty on warranties, energy performance and construction quality — but you pay in instalments, sometimes for years before completion. Resale offers speed (completion typically eight to twelve weeks after the preliminary contract) and, in certain regions, a lower tax rate, but you inherit the property's history and its risks. At comparable price points, the gap in tax cost between the two routes is narrower than many buyers expect. The decision ultimately comes down to three factors: how soon you need the property, how much legal and structural risk you are prepared to accept, and whether you are willing to commit a deposit that may be tied up for months before you receive the keys.
