Off-plan property in Spain: pros, cons and risks
What buying new and off-plan offers, what can go wrong, and how to reduce the risks before you sign.
By Investidad advisory team · Last reviewed 16 Oct 2026
Weighing it up
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. |
Read the full comparison in new build vs resale and the cost side in the hidden renovation bill.
