New build vs resale in Spain: the complete guide for buyers and investors
A resale home often looks cheaper on the listing. Once purchase tax, renovation, energy and maintenance over ten years are counted, the gap narrows or reverses. This guide compares both on cost, risk, comfort and process.
By Investidad advisory team · Last reviewed 16 Oct 2026
The short answer
Purchase tax
NEWIVA 10% (IGIC 7% in the Canaries) plus AJD 1–2%.
RESALEITP 6.5–13% depending on region and price.
Renovation in the first decade
NEWLittle or none: new kitchen, bathrooms and installations.
RESALEOften a kitchen, bathrooms, AC, windows and in time plumbing and electrics.
Community levies
NEWRare in the early years; structural defects are insured.
RESALEFaçade, roof and lift works are paid through a Derrama.
Energy
NEWUsually rated A or B, with heat pumps and modern insulation.
RESALEOften E to G, with electric water heaters and older AC.
Warranties
NEW1, 3 and 10 years under the LOE, with compulsory seguro decenal.
RESALEHidden defects claimable from the seller for six months, in narrow cases.
Price and process
NEWPublished price list, no bidding, stage payments guaranteed by an aval bancario.
RESALENegotiated with the owner, usually through an Arras contract.
What to watch
NEWDelivery delays, developer track record, specifications, Snagging.
RESALECondition, hidden defects, planned community works, the reference value.
| NEW BUILD | RESALE | |
|---|---|---|
| Purchase tax | IVA 10% (IGIC 7% in the Canaries) plus AJD 1–2%. | ITP 6.5–13% depending on region and price. |
| Renovation in the first decade | Little or none: new kitchen, bathrooms and installations. | Often a kitchen, bathrooms, AC, windows and in time plumbing and electrics. |
| Community levies | Rare in the early years; structural defects are insured. | Façade, roof and lift works are paid through a Derrama. |
| Energy | Usually rated A or B, with heat pumps and modern insulation. | Often E to G, with electric water heaters and older AC. |
| Warranties | 1, 3 and 10 years under the LOE, with compulsory seguro decenal. | Hidden defects claimable from the seller for six months, in narrow cases. |
| Price and process | Published price list, no bidding, stage payments guaranteed by an aval bancario. | Negotiated with the owner, usually through an Arras contract. |
| What to watch | Delivery delays, developer track record, specifications, Snagging. | Condition, hidden defects, planned community works, the reference value. |
Neither is always better. A resale home can be the right choice in a historic centre or a mature urbanisation with no new supply. But comparing asking prices alone favours resale in a misleading way, because most of what a new build includes is paid for up front, while the cost of an older home arrives later.
Purchase taxes: IVA and AJD versus ITP
A new home bought from the developer pays IVA at 10% (IGIC at 7% in the Canary Islands) plus AJD of 1% to 2% depending on the region. A resale home pays ITP instead: 7% in Andalucía, 7.75% in Murcia, 9% in the Valencian Community, 6.5% in the Canaries and 8% to 13% on a sliding scale in the Balearics.
So purchase tax is usually a few points higher on a new build. The gap is smallest in the Balearics at higher prices, where ITP's top bands reach 12% and 13%. Compare your own case with the calculator below.
Purchase cost: new build vs resale
Open full sizeRates for a buyer with no main-home or age reductions, the usual case for a non-resident. ITP is charged on the higher of the price and the cadastral reference value.
NEW BUILD
RESALE
At the same price, buying new costs more to purchase by €16,800. That is before renovation, energy and upkeep, which the ten-year cost calculator adds.
Economy and renovation risk
The lower entry price of a resale home is often an illusion. Homes on the Spanish coast built in the 1980s to 2000s commonly need a new kitchen and bathrooms, replacement air conditioning, and in time new windows, plumbing and electrics. Buildings of that age also face community works on façades, roofs and lifts, paid through a Derrama.
A new build's first decade is different: structural defects are insured for ten years, installations are covered for three and finishes for one, and the community rarely needs extraordinary levies early on. Community fees can be higher, though, where the development has pools, gardens, gym and security.
Ten-year cost of ownership
Open full sizeDefaults are illustrative for a home on the Mediterranean coast and favour neither side: the new build has higher community fees, the resale home a lower price. Energy uses an A-rated new build and an E-rated resale home. Replace every figure with the real ones: the community budget, the IBI receipt, the energy certificate and builders' quotes.
NEW BUILD
RESALE
The resale home is €80,000 cheaper to buy. After ten years the difference is €29,379, with the resale home costing less overall.
Not counted: what each home is worth after ten years, rental income, and financing. A new build's warranties cover defects for 1, 3 and 10 years; see guarantees and warranties.
| Year | New build, cumulative | Resale, cumulative |
|---|---|---|
| 1 | €457K | €391K |
| 2 | €462K | €398K |
| 3 | €466K | €405K |
| 4 | €471K | €412K |
| 5 | €476K | €425K |
| 6 | €481K | €440K |
| 7 | €486K | €448K |
| 8 | €491K | €456K |
| 9 | €496K | €464K |
| 10 | €501K | €472K |
Comfort and standard
Homes built since the 2006 building code, and especially since its 2019 update requiring nearly zero-energy buildings, have far better insulation, double or triple glazing, airtightness and acoustic separation than older stock. Most new developments heat, cool and make hot water with aerothermal heat pumps, often with underfloor heating, and rate A or B on the energy certificate.
- Quieter homes: better acoustic insulation between homes and from outside.
- Lower energy use: heat pumps and insulation instead of electric water heaters and old split units.
- Amenities designed in: gated access, underground parking, storage, communal pools, gyms and gardens.
- Layouts for today: open kitchens, en-suite bathrooms, large terraces and solariums.
Energy and running costs
Open full sizeThe kWh per m² are illustrative starting points for the Mediterranean coast. Replace them with the consumption on each home's energy certificate.
New homes built to the current building code usually heat, cool and make hot water with an aerothermal heat pump, which delivers several units of heat for each unit of electricity. Older homes often rely on electric water heaters and older air conditioning.
A fixed price and a predictable process
New developments are sold from a published price list. There is no bidding against other buyers and no negotiation with an owner who may change their mind. The purchase contract fixes the price, the payment plan and the specifications, and every stage payment is protected by an aval bancario.
Resale purchases usually run through an Arras contract, with the price agreed with the seller, a property-specific legal check, and the risk of finding defects after completion that can be claimed only in narrow cases.
The risks of buying new
A fair comparison includes what can go wrong with a new build:
- Delays: completion dates slip. Check the contract's delivery date, grace period and right to cancel.
- Developer risk: a weak developer can fail mid-project. The guarantee protects your money, but not your time; check the developer's track record.
- Market risk: you commit at today's price for a home delivered in one to three years.
- Specification changes: the contract should attach the building specifications (memoria de calidades).
- Snags at completion: inspect before completion (Snagging).
Read more in how guarantees and warranties work.
Questions buyers ask
- Is a new build always more expensive to buy?
- Purchase tax is usually a little higher (IVA plus AJD against ITP), and prices per m² are often higher. Over ten years, renovation and energy costs on an older home frequently close the gap; the calculators on this page let you test your own case.
- Can I negotiate on a new development?
- Sometimes, on the last units or early in a launch, but prices are published and the same for every buyer. The advantage is predictability rather than haggling.
