Buying a home · Comparison
The difference is not just between moving into a brand-new home or renovating: taxation, timelines, payments and the type of risk all change.
New builds and resale properties can both be good options, but they need to be assessed using different criteria. New builds concentrate more risk around the developer, project, handover and advance payments; resales require closer attention to the property's actual condition, encumbrances, homeowners' association, occupancy, renovations and historical documentation.
Quick comparison
The same question has a different answer depending on whether it is a first delivery or a resale
This table summarises typical differences. It does not replace a review of the development, the specific property, the contract, the autonomous community and the Land Registry status.
| Aspect | New build / first delivery | Second-hand / resale |
|---|---|---|
| Indirect taxation | In areas under the standard IVA regime, a first delivery by the developer is normally subject to IVA; the deed may trigger AJD depending on the applicable requirements and regional regulations. | Second and subsequent deliveries are normally subject to ITP for an ordinary residential buyer. The rate depends on the competent jurisdiction. |
| Timing of purchase | It may be purchased completed or off-plan, with months or years until handover. | The property already exists and can usually be physically inspected before making the final commitment. |
| Payments | There may be a reservation payment and instalments during construction. Advance payments are subject to a specific guarantee regime when the legal requirements are met. | There may be a reservation or prior private contract, but the timetable depends on what has been agreed. There is no single mandatory deposit structure for all property sales. |
| Main risk | Developer, licence, construction progress, project changes, delivery date, guarantees for advance payments and completion documentation. | Ownership, encumbrances, community of owners, occupants, physical condition, previous refurbishments, Land Registry/Catastro discrepancies and planning status. |
| Construction protection | It is usually purchased close to the start of the liability periods under the Building Regulation Act. | Part of those periods may remain if the building is recent, but a resale does not restart the clock. |
| Physical condition | Installations and finishes are new, although a handover inspection should be carried out and defects documented. | The buyer must assess maintenance, refurbishments, installations, efficiency and potential future works. |
| Customisation | There may be a choice of finishes or extras if permitted by the developer and the project stage. | Customisation is usually carried out after purchase through refurbishment, subject to costs and permits where applicable. |
| Availability | It may require waiting for completion, approvals and handover. | It may be quicker if the property is vacant, the documentation is ready, and there are no financing issues or cancellations. |
First delivery ≠ a mere marketing label
For tax purposes, what matters is how the transfer takes place, not just whether the property looks new
AEAT uses the concept of first delivery to determine VAT treatment. Generally, first delivery is considered to be the acquisition from the developer once construction or refurbishment has been completed, with specific rules where the property has previously been used.
First delivery
The usual tax reference for a new property is the first delivery made by the developer once construction or refurbishment has been completed, subject to the nuances defined by VAT legislation.
Second or subsequent transfer
A property may be relatively recent and yet, for tax purposes, qualify as a second or subsequent transfer. Its apparent age alone does not determine the tax.
The right question
Before estimating taxes, confirm who is selling, whether it is a first or subsequent transfer, and which tax jurisdiction applies to the property's location.
The AEAT recognises nuances in the concept of a first transfer, and there are special business transactions. This comparison covers the standard residential buyer; a business transaction or a transfer with special circumstances must be analysed separately.
Taxation
The main tax difference is VAT/AJD versus ITP, but the final amount depends on the jurisdiction
The AEAT distinguishes a first transfer of a home by the developer, normally subject to VAT in the common VAT territory, from a usada home, normally subject to Transfer Tax. AJD on a registrable deed is also governed by the ITP/AJD framework and territorial tax powers.
New build
For the first transfer of a home by the developer within the common VAT territory, the buyer pays VAT. The deed may also fall under AJD where the legal requirements are met.
The rate and specific details must be checked in the relevant tax guide.
Resale property
The standard purchase of a usada home normally falls under ITP, which must be self-assessed with the competent authority in the territory where the property is located.
Rates, bands and reductions are not national: they depend on the autonomous community or regional charter system.
Do not automatically apply mainland Spain/Balearic VAT treatment to Canarias, Ceuta or Melilla. Special indirect tax regimes must be resolved using the competent territorial source.
This page's canonical content is comparative. Percentages, reductions and taxable bases must be checked in the relevant national and autonomous community tax guides.
Payments and timeline
For off-plan new builds, the buyer may commit capital long before receiving the keys
The first additional provision of the Building Regulation Act governs advance payments received by a developer for the construction of homes. From the time the building permit is obtained, the repayment of those amounts must be legally guaranteed through surety insurance or a joint and several guarantee, and the funds must be channelled through a special account.
Identify the development, unit, price, milestones, delivery deadline and what happens to each payment.
Check the special account and individual guarantee document where applicable.
The buyer assumes timing risk until completion, approvals and handover.
The outstanding balance is paid and the property's final documentation is reviewed.
Off-plan
The contract must state the obligation to refund in the cases provided for, refer to the insurance or bank guarantee, and identify the entity/account through which advance payments will be made. The developer must provide the document evidencing the guarantee in cases subject to the legal regime.
Resale
There may be a reservation agreement, earnest money deposit or other private contract before the deed, but their effects depend on the wording and applicable law. No amount, percentage or universal consequence should be assumed solely from the name of the document.
Confirm the status of the licence, the developer's identity, the receiving account, the applicable guarantee, the contractual deadline and the refund mechanism before transferring significant sums.
Liability for construction defects
The 1-, 3- and 10-year periods begin upon acceptance of the works, not with each sale
Law 38/1999 establishes liability for certain material damage relating to finishing, habitability and structure within periods of one, three and ten years, respectively. These periods are calculated from acceptance of the works without reservations, or from the rectification of any reservations.
Finishing or completion
The contractor is liable for one year for material damage arising from workmanship flaws or defects affecting finishing or completion elements.
Habitability
The LOE sets a three-year period for certain material damage caused by defects in building elements or installations that affect habitability requirements.
Structure
Liability extends to ten years for certain structural flaws or defects that compromise mechanical strength and stability.
Buying a resale property does not restart these periods. The LOE itself provides protection against owners and subsequent purchasers, so a recent resale may retain part of the remaining period.Statutory liability periods should not be confused with commercial warranties, appliance warranties or additional contractual rights.
The LOE requires the documentation for the completed works to be retained and transferred, together with any insurance and guarantees covering the building. In the resale of a recently built property, this documentation may also be relevant in determining which cover remains in force.
Different due diligence
Do not use the same checklist for a developer as for a property with twenty years of history
The Land Registry, Catastro and planning matters are important in both purchases, but the focus changes. With new-build properties, the development and handover process is reviewed; with resales, the property's legal, physical and community history is reconstructed.
New build
- The developer's identity and ownership of the land or development rights.
- Land Registry status of the property and relevant encumbrances.
- Building permit and the project's administrative status.
- Contract, specifications, plans, annexes and floor areas.
- Guarantee and account for advance payments, where applicable.
- Final works certificate and completed construction documentation.
- First occupancy licence, occupancy certificate or equivalent document, depending on the competent authority.
- Review of handover, defects and existing guarantees.
Resale property
- Ownership and current encumbrances in the Land Registry.
- Mortgages, attachments, easements or other restrictions.
- Consistency between the Land Registry, Catastro and physical reality.
- Planning status and any renovations or extensions carried out.
- Outstanding debts and homeowners' association documentation.
- IBI and other property-related documentary matters.
- Tenants, occupants or third-party rights.
- Technical condition, installations, damp issues and anticipated renovations.
Actual time to occupancy
The purchase price does not reveal when you will be able to use the property or how much you will need to invest afterwards
An off-plan property may offer new installations and less immediate need for renovation, but it may require waiting for completion and handover. A resale may be available sooner, although its physical condition, renovation work, the release of encumbrances or occupancy status may affect the timeline.
- Compare the realistic move-in date, not just the deed signing date.
- Include extras, upgrades and new-build fittings not covered by the base price in your budget.
- For resales, estimate refurbishment, installations, furnishings and any known special assessments.
- Check whether the property will be delivered vacant and with utilities in the expected condition.
- If there is a mortgage, factor in the valuation, bank approval and contractual timeframe in both scenarios.
| Budget question | New build | Resale property |
|---|---|---|
| Are there any costs before receiving the keys? | There may be advance payments tied to construction milestones. | There may be a reservation payment/private contract, depending on the agreement. |
| Does it need refurbishment? | Not necessarily, but extras and customisations can increase the cost. | It depends on the actual condition and the standard the buyer is looking for. |
| Is there a risk of delay? | Yes, especially when the property is under construction; the contract should set out dates and consequences. | There may also be delays due to financing, encumbrances, occupancy or documentation, but the physical property already exists. |
| Can I inspect everything before signing? | If it is off-plan, the completed property cannot be inspected when entering into the contract; the process is based on the project, plans and specifications. | The existing property can normally be inspected before completing the purchase. |
How to choose
Start with the priority you are not willing to compromise on
The choice improves when you compare the buyer's objective, rather than assuming one type of property is inherently superior.
You need to move in soon
A vacant resale property with documentation in order may be a better fit than a development still under construction.
You prioritise new facilities
A new build may offer contemporary fittings, efficiency and communal areas, but you should assess the delivery timeframe and contract.
The location is non-negotiable
In established areas, resale properties may offer more inventory; in expanding areas, new supply may dominate. Actual availability is decisive.
You want to manage liquidity
Compare the payment schedule for a new-build property with the renovation and subsequent costs of a resale property. The advertised price is not enough.
The correct comparison is “this new development” versus “this property usada”, with the same total budget, target date and level of due diligence.
Common mistakes
Eight shortcuts that lead to misleading comparisons
Comparing price alone
Ignoring taxes, extras, renovation, furniture, community fees and the payment schedule.
Applying a single national tax rate
ITP and AJD have regional components that must be determined based on the location.
Believing that “new” is enough
The tax classification depends on whether it is a first or subsequent transfer and on the circumstances of the transaction.
Paying off-plan without a guarantee
Failing to check the licence, special account and applicable guarantee before advancing funds.
Assuming the guarantee starts when you buy
LOE time limits run from acceptance of the works, not from each subsequent transfer.
Not inspecting the resale property
A land registry extract does not replace the technical, planning and physical inspection of the property.
Relying solely on renders
For new builds, the contract, plans, specifications and documentation carry more weight than marketing materials.
Ignoring the date you can use the property
A cheaper option may be worse if it requires you to wait or renovate beyond your actual timeframe.
Verified official sources
Legal and institutional basis for the comparison
Sources revisadas on 8 August 2026. Regional tax rates, licences and specific administrative requirements must be verified with the relevant autonomous community and municipality.
Related guides
Explore the aspect that will determine your decision in more depth
This page is a comparison. Taxes, off-plan purchases and legal due diligence maintain their own canonicals to avoid duplication and cannibalisation.
Professional support by property type
Compare professionals with experience in the transaction you are actually going to undertake
An off-plan purchase and an established resale require different expertise. At RealtorList, you can search for agencies and agents by location, language, services and property type.
Frequently asked questions
New build or resale in España
In a standard residential purchase, the first supply of a property by the developer normally falls under IVA within the common IVA territory, and the deed may be subject to AJD. A usada property normally falls under ITP. Rates, reductions and special regimes must be determined according to the specific jurisdiction.
No. For tax purposes, the concept of first supply and the circumstances of the transaction are relevant. AEAT sets specific rules for homes purchased from a developer and for properties that have already been used.
The Building Act establishes a specific framework for advance payments. From the time the building permit is obtained, developers subject to this framework must guarantee repayment of the amounts in the cases provided for by law through surety insurance or a joint and several guarantee, and channel them through a special account.
The LOE establishes liability periods of one year for certain finishing or completion defects, three years for certain defects affecting habitability, and ten years for certain structural defects. These periods run from acceptance of the works, not from the individual purchase by each owner.
Yes, if the building is recent enough and there is still time remaining within the applicable statutory periods. The LOE provides for liability towards owners and subsequent purchasers, but a resale does not restart the time limits.
Both require review, but of a different kind. For new builds, the key considerations are the developer, permit, project, contract, payments, guarantees and handover. For resales, particular attention should be paid to title, encumbrances, the owners' association, physical condition, renovations, occupancy, Catastro and planning regulations.
No. A resale can be completed quickly if it is vacant, financed and documentation-ready, but encumbrances, cancellations, occupants, financing or inspection issues may delay it. For new builds, the timeframe also depends on the stage of construction and handover.
There is no universal answer. You should compare the total price, taxes, the time until you can use or rent it out, renovation, local demand, ongoing costs, use restrictions and completion risk. The best option depends on the strategy and the specific property.
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