New build vs resale: an honest comparison
One of the most important decisions when buying property in Spain is the choice between new build and resale. Both options have unique advantages. In this article, we make an honest comparison.
Tax difference
This is perhaps the biggest and most underestimated difference:
- New build: 10% VAT (IVA) + 1.2-1.5% stamp duty (AJD)
- Resale: 7-10% transfer tax (ITP), depending on the region
In practice, you pay approximately 11.5% on new builds and 8-10% on resale. New build is slightly more expensive in terms of taxes, but...
Guarantees
This is where new build clearly scores better:
- 1 year: guarantee on finishes and minor defects
- 3 years: guarantee on installations (plumbing, electrical)
- 10 years: guarantee on structure (foundation, walls, roof)
- Bank guarantee: legally required on all deposits
With resale properties, you have no guarantee and buy "as seen".
Energy costs
New builds in Spain must comply with CTE 2019 standards:
- Better insulation: less energy consumption for air conditioning
- Double glazing: standard in all new builds
- Heat pump or solar panels: increasingly standard
- Energy rating A or B: vs. E, F or G for older properties
Savings can amount to €1,000-€2,000 per year in energy costs.
Layout and design
- New build: open kitchens, large terraces, modern bathrooms, built-in wardrobes. You can often choose finishes.
- Resale: traditional layouts with separate rooms. Renovation possible but costs €10,000-€30,000+.
Location
Here resale sometimes has an advantage:
- Resale: often in established neighbourhoods, close to shops and beach
- New build: sometimes on the edge of town, in new areas that need to develop
However, increasing numbers of new build projects are being built in prime locations.
Waiting time
- Resale: immediately available, completion within 1-2 months
- New build off-plan: 12-24 months construction time, but you pay in instalments
Summary
| Criterion | New Build | Resale |
|---|---|---|
| Taxes | 11.5% | 8-10% |
| Guarantee | 10 years | None |
| Energy costs | Low (A/B) | High (E/F/G) |
| Layout | Modern, customisable | Traditional |
| Availability | 12-24 months | Immediate |
| Maintenance | Minimal first years | Needed immediately |
Our advice
For foreign buyers purchasing from abroad, new build offers the most certainty: guarantees, modern standards and no surprises. The slightly higher taxes are more than compensated by lower energy costs and less maintenance.
Resale properties are interesting if you want to move in immediately and are looking for a specific location in an established neighbourhood.
