Resale vs New-Build Property on the Costa Blanca

Choosing between a resale property and a new-build home is one of the most important decisions a Costa Blanca buyer will make.

The two options are not just different property types. They have different taxes, timelines, payment structures, risks, legal checks and resale profiles.

Last reviewed: 1 July 2026
Jurisdiction: Valencian Community, Spain
Important: this article is general information only. It is not legal, tax, mortgage or investment advice. Buyers should confirm all costs, documents and legal checks with an independent Spanish lawyer before committing.

Quick Summary

• Resale property gives buyers the widest choice, established locations and faster completion.
• New-build property offers modern design, energy efficiency, developer guarantees and staged delivery, but often involves waiting and buying from plans.
• Resale homes on the Costa Blanca are generally subject to Transfer Tax / ITP: 9% below €1M and 11% above €1M.
• New-build homes are generally subject to 10% VAT plus 1.4% Stamp Duty / AJD.
• Resale buyers should check title, debts, licences, community rules, condition and renovation risk.
• New-build buyers should check the building licence, developer track record, payment guarantees, specifications, delivery date and completion documentation.
• Neither option is automatically better. The right choice depends on budget, timeline, location, use and risk tolerance.

Quick comparison

1. What is a resale property?

A resale property is a home that has already been owned before.

It can be an apartment, townhouse or villa. It may be recently renovated, old, fully furnished, rented, empty or ready to move into.

On the Costa Blanca, resale stock is the larger and more varied part of the market. It includes established town centres, beachfront buildings, older villa urbanisations, mature golf communities and areas where little or no new construction is available.

Resale is often the practical choice for buyers who want:

• to see the real property before committing;
• an established location;
• faster completion;
• more choice;
• possible negotiation;
• immediate personal use or rental, if legally possible.

2. What is a new-build property?

A new-build property is usually bought from a developer.

It may be:

• off-plan, before construction is complete;
• under construction;
• newly completed and ready for handover.

New developments usually offer modern layouts, energy efficiency, contemporary amenities and developer warranties.

They can be attractive for buyers who want:

• modern architecture;
• higher energy efficiency;
• larger terraces and open-plan layouts;
• communal pools, gyms, gardens or wellness facilities;
• less immediate renovation work;
• staged payments during construction;
• potential value uplift before completion, if the project and market perform well.

However, buyers should not treat off-plan appreciation as guaranteed. It depends on entry price, location, developer quality, market conditions, supply, delivery timing and resale demand.

3. Purchase taxes

Resale and new-build homes are taxed differently.

Resale property

Resale homes on the Costa Blanca are generally subject to Transfer Tax, known in Spain as ITP — Impuesto sobre Transmisiones Patrimoniales.

As a practical rule for the Valencian Community:

• resale below €1M: 9% ITP;
• resale above €1M: 11% ITP.

New-build property

New-build homes bought from a developer are generally subject to VAT instead of ITP.

For most new residential homes in Spain:

• VAT is generally 10%;
• Stamp Duty, known as AJD — Actos Jurídicos Documentados, is generally 1.4% in the Valencian Community.

That means two properties with the same advertised price can have different total acquisition costs.

4. Practical buyer budget

As a working guide for the Costa Blanca:

These estimates include the main purchase taxes, independent lawyer, notary, land registry and standard completion administration.

They do not include financing costs, furniture, renovation, upgrades, snagging support, rental setup or ongoing ownership expenses.

5. Resale: main advantages

You can see exactly what you are buying

A resale property already exists.

You can inspect:

• real views;
• light and orientation;
• noise;
• neighbours;
• street access;
• building condition;
• community areas;
• parking;
• surrounding plots or construction risk.

This is a major advantage. Buyers are not relying on renders or future promises.

Established locations

Many resale homes are in locations where new supply is limited or unavailable.

This can matter in:

• Alicante city;
• Benissa Costa;
• Cumbre del Sol;
• Javea;
• Moraira;
• Denia;
• mature southern communities around Torrevieja and Orihuela Costa.

Established locations often have real services already in place: shops, restaurants, transport, schools, healthcare, beach access and community infrastructure.

Faster completion

A resale purchase can often complete within roughly 8–12 weeks after the property is chosen, provided due diligence, financing and seller documentation are in order.

This is useful for buyers who want to use the property quickly or start rental activity sooner.

Possible negotiation

Resale prices may have some negotiation margin, depending on seller motivation, time on market, property condition and local demand.

This is not guaranteed, but it is more common than with developer pricing.

6. Resale: main risks

Condition and renovation cost

Older properties can have hidden costs.

Buyers should check:

• damp or humidity;
• insulation;
• windows;
• electrical systems;
• plumbing;
• air conditioning;
• roof or terrace waterproofing;
• façade condition;
• lift condition;
• pool and community facilities;
• renovation permissions.

A cheap resale can become expensive if it needs major work.

Legal and debt checks

In Spain, some debts and charges can attach to the property.

Before signing a private contract, the lawyer should check:

• Land Registry information;
• seller ownership;
• mortgages or charges;
• community debts;
• IBI and local tax receipts;
• urban planning situation;
• licences and occupation documentation, where relevant;
• community statutes and rules;
• rental restrictions, if relevant.

Community rules

For apartments, community rules can affect:

• tourist rental;
• renovation works;
• façade changes;
• pets;
• use of terraces;
• installation of air conditioning;
• use of communal areas;
• future special assessments.

A resale apartment should never be bought only from photos. The building and community matter as much as the unit.

7. New-build: main advantages

Modern design and energy efficiency

New-build homes usually offer:

• open-plan layouts;
• larger glazing;
• terraces designed for outdoor living;
• better insulation;
• modern air conditioning or aerothermal systems;
• higher energy ratings;
• newer lifts, pools and community areas.

For many international buyers, this is closer to the lifestyle they expect from a modern Mediterranean home.

Amenities

Many new developments include:

• communal pools;
• landscaped gardens;
• gyms;
• wellness areas;
• coworking spaces;
• gated access;
• parking and storage;
• concierge or management options in some projects.

These facilities can support both lifestyle and rental appeal, especially for buyers who want lock-up-and-leave convenience.

Construction guarantees

New residential buildings in Spain benefit from statutory construction warranties.

As a general guide:

• 1 year for certain finishing defects;
• 3 years for habitability-related defects;
• 10 years for structural defects.

These guarantees do not remove the need for proper inspection, but they are a major difference compared with older resale stock.

Staged payments

Off-plan purchases usually follow a staged payment plan.

This can help some buyers spread payments during construction, rather than paying almost everything at completion.

However, every payment schedule should be reviewed by the buyer’s lawyer before signing.

8. New-build: main risks

Buying from plans

With off-plan property, buyers are not inspecting the finished home.

They are relying on:

• plans;
• renders;
• specifications;
• show units;
• developer promises;
• construction progress;
• legal documentation.

This makes documentation and developer track record critical.

Construction delay

Off-plan purchases depend on the construction timeline.

Delays can happen because of licensing, contractor issues, supply chain problems, technical changes or financing conditions.

The contract should clearly explain:

• expected completion date;
• delay clauses;
• buyer rights;
• penalty or compensation terms, if any;
• what happens if completion is significantly delayed.

Location maturity

New developments are often built in newer or expanding areas.

This can be positive if infrastructure improves, but buyers should check what already exists today.

Before buying, ask:

• Are shops and restaurants walkable now or only planned?
• Is the road access complete?
• Are neighbouring plots still undeveloped?
• Is public transport realistic?
• Is the beach or town actually convenient?
• Will construction continue around the property after handover?

Developer risk

Developer quality varies.

Before reserving, your lawyer and advisor should check:

• developer track record;
• land ownership or development rights;
• building licence;
• bank guarantees or insurance guarantees for advance payments;
• stage payment schedule;
• specifications;
• community fee estimates;
• completion documentation;
• licence of first occupation or equivalent documentation.

9. Off-plan payment protection

For new-build and off-plan purchases, advance payments should be protected under the applicable Spanish rules.

In practice, buyers should ask for confirmation that stage payments are protected by bank guarantees or insurance guarantees where legally required.

Before making significant payments, your lawyer should verify:

• whether the building licence has been granted;
• where payments are held;
• whether individual guarantees are issued;
• whether the guarantee covers amounts paid plus applicable legal interest;
• what happens if the project is not completed as agreed;
• whether the developer is using the correct payment account.

Do not rely only on sales-office assurances. Ask for written legal confirmation.

10. Rental considerations

Both resale and new-build properties can work for rental, but the checks are different.

Resale rental checks

For resale, check:

• existing rental history;
• tourist registration, if any;
• whether existing registration can continue after sale;
• community rules;
• municipal restrictions;
• property condition;
• furniture and setup cost;
• current management arrangements.

New-build rental checks

For new-build, check:

• whether tourist rental will be permitted;
• whether the community will allow it;
• whether municipal compatibility can be obtained;
• whether the property will meet technical requirements;
• expected delivery date;
• rental start date;
• furniture and launch budget;
• realistic occupancy after completion.

Do not buy either resale or new-build based only on gross yield projections. Calculate net yield after taxes, management, vacancy, maintenance, setup costs and legal restrictions.

11. Which should you choose?

Choose resale if:

• you want to move in quickly;
• you want to see the actual property before committing;
• you prefer established locations;
• you want the widest choice;
• you may want negotiation room;
• you want immediate rental potential, subject to legal checks;
• you are comfortable checking condition and possible renovation risk.

Choose new-build if:

• you want modern design and energy efficiency;
• you can wait for completion;
• you prefer new amenities and low immediate maintenance;
• you want developer warranties;
• you are comfortable buying from plans;
• you can follow a staged payment schedule;
• you want potential value uplift before completion, without assuming it is guaranteed.

12. What your lawyer should check

For resale

• Land Registry information;
• seller ownership;
• mortgages, charges or debts;
• community debts;
• IBI and local tax receipts;
• licences and occupation documentation;
• urban planning situation;
• community statutes and minutes;
• rental restrictions;
• cadastral information;
• tax base and reference value;
• purchase contract terms.

For new-build

• developer ownership or rights over the land;
• building licence;
• planning compliance;
• payment schedule;
• bank guarantees or insurance guarantees;
• specifications and plans;
• delivery date;
• delay clauses;
• completion documentation;
• licence of first occupation or equivalent;
• snagging process;
• community fee estimates;
• VAT and AJD treatment.

Bottom line

Resale and new-build property on the Costa Blanca can both be excellent choices, but they suit different buyers.

Resale gives you visibility, established locations, faster completion and wider choice.

New-build gives you modern design, energy efficiency, developer guarantees and staged delivery, but requires patience and careful review of the developer, payment structure and documentation.

The right decision is not “resale or new-build” in the abstract.

The right decision is the property that best matches your budget, timeline, location, use, legal position and risk tolerance.