New Build or Resale in Spain?

Buying a property in Spain is one of the most important decisions, both financially and emotionally. However, before signing any contract, it is essential to understand the differences between new build and resale, as they directly affect costs, legal guarantees, and associated risks.

In this article, we will examine all the key aspects that distinguish these two options, based on current regulations, market best practices, and legal advice from experts.

Taxes and costs: the main initial difference

One of the biggest differences between buying a new build property and a resale lies in the tax burden. Although the sale price may seem similar, the associated taxes change substantially.

Taxes when buying a resale property

When purchasing a second-hand property, the main tax to be paid is the Property Transfer Tax (ITP). In regions like Andalusia, this tax is currently 7% of the declared price. This rate, previously progressive, has now been set as a fixed rate, providing predictability for the buyer.

In addition to the ITP, you should also consider:

• Notary and registration fees: approximately an additional 1%.

• Legal fees (if using a lawyer): between 1% and 1.5% of the price.

Therefore, total costs for a resale purchase usually range between 9% and 10% of the purchase price.

💡 Check the latest ITP rates by autonomous community on the official website of the General Council of Notaries.

Taxes when buying a new build property

In contrast, when buying directly from a developer (known as a first transfer), the buyer is subject to:

• VAT (Value Added Tax): 10% of the price.

• Stamp Duty (AJD): 1.2% (varies by region).

• Notary, registry and legal fees: around 1%–2%.

In other words, buying a new build property entails a tax cost of approximately 12% to 13% of the property value.

Legal guarantees: another key difference

Beyond taxes, another key factor when comparing new build vs resale is the legal guarantees and buyer protection.

For a resale property

Legal guarantees are minimal. The buyer can only claim for hidden defects, meaning defects that were not visible at the time of purchase but appear later.

For example, leaks, structural problems, or system failures that could not be detected during the visit. The law grants a six-month period from the date of purchase to file a claim for hidden defects. After this period, no legal action can be taken.

⚖️ More information about hidden defects and buyer rights is available on the Consumers and Users Organization (OCU).

For this reason, it is highly recommended to hire a technical expert to perform a prior inspection, especially for older properties. There are companies specialized in comprehensive inspections for homes and villas.

For a new build property

In this case, the developer is legally obliged to offer several guarantees:

• 1 year: for defects in finishes (paint, floors, carpentry).

• 2 years: for failures in systems (electricity, plumbing, heating).

• 10 years: structural insurance (foundations, structure, etc.).

These guarantees are regulated by the Building Regulation Law (LOE) and offer solid protection to the buyer in the early years after the handover.

ℹ️ You can check the details of these guarantees on the Ministry of Transport and Urban Agenda website.

Emotional and practical reflections

Beyond the technical aspects, the choice between new build and resale also involves emotional and lifestyle factors. Some buyers prefer the charm and character of an older property, while others value the comfort and efficiency of a modern development.

Likewise, many new builds are located in developing areas with growth potential, while resales may be found in consolidated, central neighbourhoods with mature surroundings and services.

Our recommendation

Take your time to visit different properties, compare total costs (not just the sale price), and consider what guarantees give you more peace of mind in the medium and long term.

Don’t hesitate to seek legal and technical advice before signing anything. A good professional can prevent future problems and ensure a smooth, secure purchase process.

Conclusion: new build or resale?

Choosing between a new build and a resale is not just about price—it’s about taxes, guarantees, timing, and your long-term expectations.

If you are looking for a property in Marbella, Estepona or Benahavís, our expert team at FM Properties can guide you through each step of the buying process with honesty, legal support, and extensive local experience.

Frequently Asked Questions (FAQ)

What is the ITP in Spain?

The Property Transfer Tax (ITP) applies to resale properties. In Andalusia, it is a flat rate of 7% of the purchase price.

What taxes are paid on new build properties?

VAT (10%) and Stamp Duty (1.2%), plus legal and notary fees, which bring the total to around 12–13% of the sale price.

How long do I have to claim for hidden defects?

You have up to six months from the date of purchase to file a claim in court for hidden defects.

Are new build properties more expensive?

Not necessarily. While they involve higher taxes, they usually offer better energy efficiency, new installations, and structural guarantees.

Can I inspect a resale property before buying?

Yes. It is highly recommended to hire a technical expert or inspection company to detect hidden issues before completing the purchase.