Key Takeaways
- ✓ New builds pay IVA (10%) + AJD (1.5%); resales pay ITP (10% in Valencia, 7% in Andalusia).
- ✓ New builds come with a 10-year structural warranty and modern energy ratings (A or B).
- ✓ Resale properties are available immediately; off-plan new builds can take 12–24 months.
- ✓ New builds typically cost 20–40% more per m² than comparable resale properties in the same area.
- ✓ Resale gives you established communities with mature gardens, proven community management and known neighbours.
Tax Differences
| Tax | New Build | Resale |
|---|---|---|
| Main tax | IVA (VAT) 10% | ITP 10% (Valencia) / 7% (Andalusia) |
| Additional stamp duty | AJD 1.5% | None |
| Total tax | 11.5% | 10% (Valencia) / 7% (Andalusia) |
In the Valencia region, the total tax burden is similar (11.5% new build vs 10% resale). In Andalusia, resale is significantly cheaper at just 7% ITP. This is one reason Costa del Sol resales are popular — read our Costa del Sol guide for more.
Build Quality and Energy Ratings
New-build properties in Spain must comply with the 2019 Technical Building Code (CTE), which mandates high insulation standards, energy-efficient heating/cooling, and modern electrical and plumbing systems. Most new developments achieve energy ratings of A or B, compared to E, F or G for older resale stock. This translates directly into lower utility bills — a well-insulated new build can save €500–€1,000/year in electricity costs versus a poorly insulated 1990s apartment.
Resale properties built in the 1980s and 1990s often have single-glazed windows, no insulation, and older electrical installations. Renovation costs to bring them up to modern standards can add €10,000–€30,000 depending on the scope of work.
Timelines and Availability
Resale: Available for immediate occupation. From accepted offer to keys typically takes 6–12 weeks. You can see the exact property, neighbourhood, and community before buying.
New build (off-plan): Construction typically takes 12–24 months from reservation. You pay in stages (usually 30% during construction, 70% at completion). The advantage is you can sometimes customise finishes. The risk is construction delays, though Spanish law requires developers to provide a bank guarantee protecting your stage payments.
Real Comparisons
Here is a new-build apartment, a modern resale, and an older resale in Torrevieja — showing the range of options at different price points:
€240,000New Build 2-Bed Apartment in Acequion
Torrevieja · Acequion
€174,9692-Bed Villa in Los Frutales
Torrevieja · Los Frutales
€138,9001-Bed Apartment in Centro
Torrevieja · Centro
The new build at €240,000 delivers 75 m² of modern, energy-efficient living with two bathrooms. The resale villa at €175,000 offers outdoor space and privacy but may need updating. The older resale at €139,000 provides central location at the lowest entry cost. Each has clear trade-offs. For full details on the buying process for either type, see our complete buying guide.