New Build vs Resale
New Build vs Resale: Which Is Right for You?
Compare new build and resale properties in Spain. Understand costs, taxes, warranties, and which option suits your goals as an international buyer.
Why This Choice Matters
One of the first decisions international buyers face in Spain is whether to purchase a new build or a resale property. This choice affects far more than just the purchase price—it influences your taxes, legal protections, maintenance costs, and long-term investment potential.
A new build refers to recently constructed properties, either completed or sold off-plan before completion. These come with modern specifications, builder warranties, and typically higher energy efficiency standards.
A resale property is any previously owned home, from historic townhouses to relatively modern apartments. These offer established locations, immediate availability, and often more negotiating room on price.
Neither option is universally better—the right choice depends entirely on your priorities, budget, and how you plan to use the property.
Upfront Costs and Taxes Compared
The tax structure differs significantly between new builds and resales, which directly impacts your total purchase cost.
New build properties are subject to VAT (IVA) at 10% plus Stamp Duty (AJD) of 1.5% in Valencia (rates vary by region). On a €300,000 property, that means approximately €34,500 in taxes.
Resale properties attract Property Transfer Tax (ITP) instead, typically 10% in the Valencia region. The same €300,000 property would incur €30,000 in transfer tax—a meaningful saving.
Beyond taxes, add legal fees (1-1.5%), notary costs (0.5-1%), and registry fees. For a detailed breakdown, use our buying costs calculator to see exact figures for your purchase price.
Off-plan purchases require careful payment staging—typically 30-40% during construction with the balance on completion. This requires trust in the developer and understanding of bank guarantee protections.
Quality, Location and Lifestyle Factors
Character and Established Settings
Resale properties often occupy prime locations in established neighbourhoods with mature gardens, proven community infrastructure, and immediate access to amenities. What you see is what you get—no waiting for landscaping to mature or developments to complete.
New builds come with a 10-year structural warranty and must meet current building regulations, including modern energy efficiency standards. You get contemporary layouts, integrated air conditioning, and typically lower utility bills. However, new developments may be further from town centres or in areas still developing their character.
Resales may need updates to electrical systems, plumbing, or insulation. However, they offer larger plots, established gardens, and locations that simply are not available for new construction. A thorough legal check and professional survey are essential for any resale purchase.
New Build Advantages
Resale Advantages
Matching Property Type to Your Goals
Your intended use should guide this decision more than anything else.
Holiday home buyers often prefer resales for established locations near beaches and restaurants. Immediate availability means you can start enjoying your property right away rather than waiting for construction.
Permanent residents may favour new builds for the lower maintenance requirements and modern specifications. Energy efficiency becomes more important when you are paying utility bills year-round.
Holiday Home
Resales in established areas often suit best—prime locations, immediate use, and proven rental potential
Permanent Residence
New builds offer low maintenance, modern comfort, and energy efficiency for year-round living
Investment
Both work—new builds for hands-off appeal, resales for value-add potential through renovation
Renovation Project
Resales only—look for structurally sound properties in excellent locations needing cosmetic updates
Investors should consider rental demand and resale potential. New builds attract tenants seeking modern amenities, while resales in premium locations command strong rental rates year after year. Our first-time buyer guide covers the purchase process in detail.
Ultimately, both options can be excellent purchases in Spain. The key is matching the property type to your specific circumstances, budget, and long-term plans.
Ready to Decide?
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Whether you prefer a modern new build or a character resale, we can help you find the right property and guide you through every step of the purchase.
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