A new build in Spain pays 10% VAT plus stamp duty (AJD), which is 1.2% in Andalucía and 1.5% in some other regions, while a resale pays the regional transfer tax (ITP), such as 7% in Andalucía or 9% in Valencia from 1 June 2026. A resale usually completes in about 6 to 12 weeks, and you can inspect the home first. An off-plan new build can take 12 to 24 months, with stage payments that should be protected by a bank guarantee. The right choice depends on the budget, the date you need the keys and how much risk you accept. This guide compares taxes, timelines, quality, warranties and the risks of each, with a worked example. It is general information, not legal advice.
How do the taxes compare?
On a €250,000 purchase price, the table compares the usual taxes. VAT and stamp duty for new builds, and ITP for resales, are explained in our ITP vs VAT vs stamp duty guide.
| Case | Tax | Amount | Approx. in £ / $ |
|---|---|---|---|
| New build, Andalucía | 10% VAT + 1.2% AJD | €28,000 | ≈ £23,600 / $31,400 |
| Resale, Andalucía | 7% ITP | €17,500 | ≈ £14,800 / $19,600 |
| New build, region with 1.5% AJD | 10% VAT + 1.5% AJD | €28,750 | ≈ £24,300 / $32,200 |
| Resale, Valencia (from 1 June 2026) | 9% ITP | €22,500 | ≈ £19,000 / $25,200 |
Conversions are approximate and use the European Central Bank reference rates of 14 October 2026 (€1 = £0.844 = $1.120). Rates move every day.
The stamp duty rate for new builds is set by each region, and the sources I read give 1.2% for Andalucía and 1.5% elsewhere, so check the rate for your region. The comparison also depends on the price: a new home and a resale of the same price are rarely equivalent. On a like-for-like basis, the tax is higher for the new build in these examples, by €10,500 in Andalucía and €6,250 in the second example. The rest of the cost is in the notary, registry and legal fees; see the buying costs guide.
How long does each take?
| Resale | Off-plan new build | |
|---|---|---|
| From accepted offer to keys | About 6–12 weeks | About 12–24 months from reservation |
| Can you inspect it first? | Yes | No; you buy from plans |
| Main risk | Hidden defects, planning status | Delays, developer failure |
How do the payments work?
For a resale, you pay a deposit, usually under an arras contract, and the balance at the notary. For an off-plan home, one guide says payments are typically around 30% during construction and 70% at completion. The same guide says Spanish law requires developers to provide a bank guarantee protecting the stage payments. Do not rely on a summary: ask your lawyer to confirm that a valid guarantee covers every payment before you transfer money, and keep the original document.
What about quality, energy and warranty?
- Standards: new builds must meet the 2019 Technical Building Code, with insulation and efficiency requirements. One guide says most new developments have energy ratings of A or B, while older resale homes more often rate E, F or G.
- Running cost: the guide estimates that a well-insulated new home can save €500 to €1,000 a year in electricity compared with a poorly insulated 1990s apartment. This is an estimate, not a measurement.
- Refurbishment: bringing an older resale home up to modern standards can cost €10,000 to €30,000, depending on the scope.
- Warranty: new builds come with a 10-year structural warranty. The source I used does not cover other defect cover, so ask your lawyer which guarantees apply to finishes, installations and the building.
- Energy certificate: sellers must provide one.
What other costs differ?
New developments often include communal facilities such as a gym, gardens and underground parking, which you pay for through the monthly community fee whether or not you use them. Communal pools are common in both new and resale stock, so they are not a reason by themselves to pay a premium. See community fees, IBI and running costs for the yearly budget.
Which checks do you need?
- New build: the developer’s licences, the land registry description, the bank guarantee, the plans and specification attached to the contract, and the developer’s record. See nota simple for the registry check.
- Resale: the planning checks in illegal builds in Spain, the community debts and the energy certificate.
- Both: your own independent lawyer; see lawyer fees.
Which suits which buyer?
- A new build suits a buyer who wants modern energy standards, a warranty and can wait, and who accepts the construction risk.
- A resale suits a buyer who wants to see the home, move quickly and negotiate, and who will check the legal status and the condition.
What are the common mistakes?
- Comparing the headline prices without the taxes.
- Paying stage payments without checking the bank guarantee.
- Assuming that a new build has no defects.
- Assuming that a resale with a nice finish is legal; check the licences.
- Forgetting the community fees that come with shared facilities.
- Ignoring the delivery date and the penalty for delay in the contract.
What does the total budget look like?
Using the 10% to 13% total-cost range for buying that Spanish law firms give for resales, a €250,000 resale needs about €25,000 to €32,500 on top of the price. For a new build, the VAT and stamp duty alone in the Andalucía example come to €28,000, which is 11.2% before the notary, registry and legal fees, so the total is likely to be at the upper end of that range or above it. Use the Spain cost calculator for your price and region rather than relying on a rule of thumb.
Is there more room to negotiate on a resale?
Usually yes, because a resale seller is a private owner and a new-build developer sells a list of units at set prices. Notary data for the first quarter of 2026 in the Marbella–Estepona–Benahavís area showed villas closing a median of about 13.6% below listing and apartments about 11.1% below, but that is one area and it covers all types of resale, so treat it as a sign that asking prices are a starting point. Ask your lawyer for sold-price evidence in your town.
What should an off-plan contract contain?
- The delivery date, and a penalty or right to cancel if the developer is late.
- A detailed specification and plans attached to the contract, including finishes, appliances and the size of terraces.
- The bank guarantee for each stage payment, with the bank’s name and the amount.
- The licences that the developer must obtain and the date of the completion certificate.
- Who pays the taxes, the connection of utilities and the community charges in the first year.
- What happens if the final home differs from the plans.
What should you do at handover?
Inspect the home before you accept the keys, ideally with an independent architect or surveyor. Write down every defect, take dated photographs and send the list to the developer in writing. Test the taps, electrics, windows, air-conditioning and drainage, and keep the warranty documents, the energy certificate and the community statutes. A written snagging list gives you a record if the defects are not fixed.
What is the short verdict?
Choose a resale if you want to see what you buy, move within a few months and have room to negotiate, and accept the work of checking the legal status. Choose a new build if you value modern energy standards and a structural warranty and can wait, and make the bank guarantee and the delivery date the centre of your checks. In both cases the most useful step is to compare the total cost, tax included, for two real homes in the town you prefer, and to have your own lawyer read the contract before any money moves. The 12-step buying guide shows where each check belongs in the process.
Frequently asked questions
Which is cheaper to buy in Spain, a new build or a resale?
The tax is usually higher for a new build: 10% VAT plus stamp duty against ITP of 6% to 10% depending on the region. The price of the home also differs, so compare total cost for equivalent homes.
How long does an off-plan purchase take?
One guide gives about 12 to 24 months from reservation, with delays as the main risk.
Are my stage payments protected?
One guide says Spanish law requires developers to provide a bank guarantee. Ask your lawyer to check it before each payment.
What warranty does a new build have?
A 10-year structural warranty, according to one guide. Ask about the cover for other defects.
Are new builds more energy efficient?
The guide says most new developments are rated A or B, while older homes more often rate E, F or G.
This is general information, not legal or tax advice. Rules and rates change, and your situation may differ. Confirm the figures with the tax authority and a qualified lawyer or tax adviser before you commit. Facts last checked on 16 October 2026.
Sources
Official sources (check these for the current rule):
Also cross-checked against published guides, because practice varies between notaries, registries and banks:
