Buying guide
New build or resale on the Costa del Sol: which should you choose?
Updated 20 September 2026
In short
New builds bring predictable taxation (10% VAT plus AJD stamp duty), modern energy performance and some scope for customisation, but require waiting for completion and checking the developer's financial standing. Resale properties allow immediate occupation in an established location with a known history of running costs, but can involve renovation work and more thorough land registry checks. The right choice mainly depends on your time horizon, renovation budget and tolerance for schedule risk. Both options coexist widely across the Marbella area in 2025-2026.
Purchase taxation: VAT and AJD versus ITP
The most visible tax difference between new and resale properties arises at the point of signing. A new property sold for the first time by a developer is subject to VAT (IVA) at 10% of the price, plus AJD (Actos Jurídicos Documentados), a regional stamp duty set at 1.2% for residential property in Andalusia. A resale property, sold between private individuals or by a company, falls under ITP (Impuesto de Transmisiones Patrimoniales), set at 7% of the price in Andalusia following the regional reform, with no additional VAT.
On an €800,000 property, this represents roughly €89,600 in taxes for a new-build purchase (€80,000 VAT + €9,600 AJD) against €56,000 for a resale purchase at 7% ITP. The pure tax comparison therefore favours resale, but this needs qualifying: new properties often come with finishes, guarantees and energy performance that reduce other costs over time. These rates are those in force in 2025-2026 and may change; verify with a tax adviser or notary before signing.
Price per square metre, energy performance and running costs
New-build prices per square metre generally run above comparable resale prices, in a range that varies considerably by area: the gap can reach 15-30% in zones such as Nueva Andalucía or Estepona, where recent developments are plentiful, and more in scarce locations on the Golden Mile or Sierra Blanca where new-build land is limited. This premium partly reflects energy performance: recent construction complies with the current technical building code (reinforced insulation, double or triple glazing, heat pumps, sometimes solar panels), with energy certificates often rated A or B, against C to E for much of the older stock.
On running costs, a new property in a homeowners' community typically shows higher community fees in the first years, while shared facilities (pool, gardens, security, gym) are amortised and the community reaches a settled rhythm, whereas a resale property in an established community has a known and negotiable cost history with the administrator. IBI (property tax) and the rubbish collection tax (basura) are calculated on cadastral value and do not directly depend on the age of the property, but a recent cadastral revaluation can push up IBI on a new property faster than on a resale one whose cadastral value has not been updated.
| Criterion | New build | Resale |
|---|---|---|
| Purchase taxation | 10% VAT + 1.2% AJD | 7% ITP |
| Availability | Often 12-30 months if off-plan | Immediate after signing |
| Price per m² | Generally higher | Generally more moderate |
| Community fees | Higher at start-up | Known and stable history |
| Legal guarantees | 10-year, 3-year, 1-year cover | No builder's warranty |
| Room for negotiation | Limited (developer's price grid) | Possible depending on seller and market |
Customisation versus immediate availability
Buying off-plan often allows customisation of certain elements: kitchen and bathroom finishes, flooring, sometimes internal layout if the buyer commits early in the project. This latitude narrows as construction progresses and disappears once the shell is complete. It has a trade-off: each option chosen can extend delivery timescales and add to the advertised base price.
Resale offers the opposite advantage: immediate availability, the ability to visit the actual property rather than a 3D rendering, and a direct assessment of build quality, orientation, views and neighbours. For a buyer in a hurry to move in, let the property or secure a scarce location before it disappears from the market, resale removes the scheduling uncertainty inherent to new builds.
Off-plan purchase: payment schedule and guarantees
An off-plan purchase (obra nueva or compraventa sobre plano) follows a staggered payment schedule, distinct from a resale purchase settled in one payment at completion (escritura). The most common structure includes a reservation payment, then several instalments during construction totalling 20-40% of the price, and a final balance on delivery, when keys are handed over and the deed is signed before a notary. The exact rhythm of instalments (quarterly, tied to construction milestones) varies by developer and should be set out clearly in the reservation contract and then the private sale contract.
Law 20/2015 requires a bank guarantee or surety insurance covering all instalments paid before completion, held in a special account dedicated to the project: if the developer defaults or delivery is delayed beyond the contractual deadline, the buyer can demand full repayment of sums paid, including interest. Buyers should check that each instalment is backed by an individual guarantee certificate rather than an insufficient blanket guarantee.
| Stage | Indicative amount | Point to check |
|---|---|---|
| Reservation | €5,000-10,000 flat or 1-2% | Secures the unit, refundable per clause terms |
| Private sale contract | 10-20% of price | Bank guarantee mandatory from this payment |
| Construction instalments | A further 10-20% in total | One guarantee certificate per instalment |
| Balance on delivery | Remaining 60-80% | Verify first-occupation licence before paying |
Licences, and 10-year and 3-year guarantees
Before any payment, the project's building licence (licencia de obra) should be verified, along with its conformity to the sold project. At delivery, it is the licencia de primera ocupación (first-occupation licence), issued by the town hall, that confirms the building meets standards and can be legally occupied and connected to utilities: no final payment or signing of the deed should occur without it, or without a dated written commitment from the developer on obtaining it.
Spanish new-build construction benefits from three legal guarantees set out in the building planning law (LOE): a 10-year guarantee covering defects affecting the structure and safety of the building, a 3-year guarantee covering defects in constructive elements ensuring habitability (waterproofing, insulation), and a 1-year guarantee covering finishes and execution defects. These guarantees are attached to the building, transferable to successive buyers for their remaining duration, and come on top of the bank guarantee on instalments, which only covers the construction period.
Real risks of off-plan buying
Delivery delays remain the most frequent risk: a few months' slippage is common and usually allowed for contractually within a tolerated margin, but longer delays, linked to supply, labour or developer financing difficulties, are possible. The private contract should set a precise delivery date with penalties for overrun, or failing that a right of termination with full repayment.
A gap between marketed 3D renderings and the delivered property (materials, colours, ceiling heights, outdoor landscaping) is also common; it is reduced when the contract refers to a precise technical specification document rather than visuals alone. The developer's financial standing deserves independent checking before reserving, particularly for a recent entrant without a delivery track record. Finally, reselling a property before completion (contract assignment) is possible under some contracts but remains regulated, sometimes subject to the developer's consent and specific taxation on any capital gain realised.
Advantages and risks of resale properties
Resale properties keep advantages that new builds cannot offer immediately: an already established location, often closer to the coastline or historic centres, mature gardens and trees that no recent planting can replace within a few years, and an existing homeowners' community whose accounts and meeting minutes can be reviewed. Negotiation is generally more open than against a developer's fixed price grid, particularly when a property has been on the market for several months or the seller faces a scheduling constraint.
The risks specific to resale properties centre on the condition of the building and its administrative compliance. Upgrading work (electrics, plumbing, insulation, pool) is common on properties over twenty or thirty years old and should be budgeted for from the offer stage. Undeclared extensions (an extra bedroom, an enclosed garage, a covered terrace) are regularly encountered and can block a future resale or require costly regularisation; likewise, discrepancies between the registered and actual surface area are possible and should be checked at the land registry (Registro de la Propiedad) and the cadastre before signing the deposit contract (arras).
Frequently asked questions
- Is new build really more expensive than resale in an equivalent location?
On the advertised price per square metre, yes in most cases, with a 15-30% gap depending on area in 2025-2026. But the gap narrows once renovation costs, energy upgrades and the legal guarantees absent on resale are factored in. The comparison should be made on total cost over 10 years, not purchase price alone.
- What guarantee protects my instalments if the developer goes bankrupt?
Law 20/2015 requires a bank guarantee or individual surety insurance for each instalment paid before completion, held in a dedicated account. In the event of default or delay beyond the contractual deadline, the buyer can demand full repayment of sums paid with interest, provided a certificate was received for each payment.
- How long does construction of a new development typically take?
Expect generally 12 to 30 months between reservation and delivery, depending on the size of the development, its complexity and how advanced it is when purchased. Reserving too early, before the building licence is obtained, increases the risk of delay.
- What is the first-occupation licence and why is it essential?
It is the document issued by the town hall confirming the building meets construction standards and can be legally occupied and connected to water and electricity. Without it, the deed should not be signed nor the final payment made, since the property cannot be legally occupied.
- How can I check that an extension on a resale property is registered?
You need to compare the plan and surface area shown on the deed and at the Registro de la Propiedad with the actual surface area on site, and check the local cadastral record. A discrepancy usually reveals an undeclared extension that will need regularising or negotiating into the price.
- Do the 10-year and 3-year guarantees still apply if I resell the property?
Yes, these legal guarantees under the LOE are attached to the building rather than the first buyer: they transfer automatically to any subsequent buyer for the remaining period, which is a resale argument for a still-recent new property.
- Is it possible to negotiate the price of a new build the way one would resale?
Room for negotiation is generally more limited against a developer's fixed price grid, except towards the end of a development's sales phase or on units that have remained unsold for a long time, where discounts or included extras (parking space, finishes) are sometimes offered.
- What happens if delivery is delayed beyond the contractual date?
The private sale contract should set a tolerance margin and, beyond it, penalties or a right of termination with full repayment of sums paid. Without a clear clause, the buyer can end up in a weaker negotiating position, which is why the contract should be reviewed before signing.
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