Buying a New-Build Property in Spain
New-build properties are especially popular among international buyers on the Costa del Sol. Modern architecture, energy-efficient construction, generous terraces and high-quality communal facilities make many new developments an appealing alternative to resale properties.
Buying a new-build property — particularly off-plan or during construction — differs from buying an already completed property in several important respects. At Right Casa, we help you compare suitable new-build developments and support you from your first interest right through to the handover of your new property.
In Short
- Off-plan means buying a property before or during construction.
- Benefits include modern specifications and often more attractive prices for early buyers.
- There are risks, but stage payments are legally protected in Spain.
- The developer and project should be carefully checked before buying.
- Legal warranties cover construction defects after handover.
New build or off-plan – what does that mean?
With new-build developments, you can buy properties at different stages of construction. Some developments are close to completion, while others are sold before construction has even begun. The latter is often referred to as an off-plan purchase. You decide on your property based on construction plans, floor plans, specification descriptions, visualisations and show homes. This is precisely why it's important to look not only at the location and price, but also to have the developer, the contracts and the legal safeguards carefully reviewed.
What are the advantages of a new-build property?
Modern fittings and construction
New-build properties are constructed to current building regulations and often offer a higher technical and energy standard than older properties. Depending on the development, features can include modern air conditioning, high-quality windows, thermal insulation, energy-efficient systems, open-plan living areas, and contemporary kitchens and bathrooms. Especially when it comes to ongoing energy costs, a modern property can offer long-term advantages.
Less need for renovation
A major advantage is that you typically move into a completely new property. With a resale property, buyers often also need to factor in costs for the kitchen, bathroom, windows, electrics or other renovation work. With a new build, such work is usually significantly reduced in the first years.
Choice of finishes
If you get involved early enough in a development, many developers offer a choice of finishes. Depending on the project, you may be able to choose between different:
- Flooring
- Tiling
- Kitchen surfaces
- Bathroom fittings
- Colour schemes
Some developers also offer additional finishing or customisation packages for an extra cost. Which changes are possible always depends on the specific development and its stage of construction.
Can buying early be attractive in terms of price?
Buying at an early stage of a development can be attractive in terms of price. For successful developments, developers sometimes increase sale prices over the course of the different sales and construction phases. Buyers who get in early may therefore, in some cases, be able to buy at a lower price than those who buy shortly before completion. In particularly high-demand locations, new-build properties can even be significantly more expensive than comparable resale properties, due to their modern specification. What ultimately matters is always location, development, build quality, specification and market price.
What are the risks of an off-plan purchase?
The key difference compared to a finished property is that you're buying something you may not yet be able to see in full at the time you sign the contract. For this reason, you should consider the following points.
Completion dates can change
Delays can occur with larger construction projects. Permits, material deliveries, technical changes or other factors can cause an originally planned completion date to be postponed. If you're timing a move or the sale of another property around this, you should therefore build in some flexibility.
Plans and visualisations are not a finished property
Computer-generated visuals can look very appealing, but they don't replace the actual contractual documentation. Your lawyer should therefore review, in particular, the:
- Floor plans
- Area measurements
- Construction specification
- So-called Memoria de Calidades (specification of finishes)
- Communal facilities
- Contract terms
The contractually agreed documentation is ultimately far more important than any marketing visualisation.
Are my payments on account protected?
With an off-plan purchase, payments are often made in several stages. Spanish law provides protective mechanisms for certain advance payments on new residential builds. Under the legal requirements, advance payments made by the buyer must be backed by an appropriate bank guarantee or insurance solution. Your independent lawyer should therefore check, before any payment:
- Where the payment is going
- Whether the required security is in place
- What amount is covered
- Under what conditions the guarantee can be enforced
Do not transfer significant advance payments based solely on sales brochures or verbal assurances.
Check the developer and the project
Before signing a purchase contract, your lawyer should check, among other things:
- Ownership of the land
- Required building permits
- Registration of the development
- Any charges on the land
- Contract terms
- Payment schedule
- Planned completion date
- Security for advance payments
- Documentation for the property
Thorough legal due diligence is particularly important with new-build developments.
What warranty applies to construction defects?
Spanish building law distinguishes between different liability periods depending on the type of defect. In general, the following apply:
1 year
for certain workmanship or finishing defects.
3 years
for certain construction defects affecting habitability requirements.
10 years
for certain structural damage, for example to the foundations, load-bearing elements or other components affecting the building's mechanical strength and stability.
The commonly heard phrase "new builds come with a ten-year guarantee" is therefore an oversimplification. A buyer's rights depend on which defect is present, when it is identified, and who is responsible for it.
Inspection before handover
Before the final handover, we recommend a careful inspection of the property. This should include checking, among other things:
- Doors and windows
- Tiles and floors
- Kitchen and bathroom fittings
- Fixtures and fittings
- Walls and paintwork
- Sockets and lighting
- Air conditioning
- Terraces and outdoor areas
- Agreed specification details
Any defects identified should be documented in writing and reported to the developer. For larger or technically complex properties, a professional technical inspection can also be worthwhile.
What taxes apply to a new build in Andalusia?
Buying a new residential property directly from the developer generally incurs 10% VAT (IVA). In addition, stamp duty (AJD – Actos Jurídicos Documentados) is usually payable upon notarisation. The general AJD rate in Andalusia is currently 1.2%, although reduced rates may be possible under certain conditions. Buyers should also factor in costs such as:
- Lawyer
- Notary
- Land registry
- Financing, if applicable
- Gestoría, if applicable
Your lawyer should prepare an individual overview of the expected purchase costs for you before you buy.
Can I resell an off-plan contract before completion?
A buyer cannot automatically simply resell a contract to another buyer. Whether an assignment of the buyer's position is possible depends, among other things, on the contract and the developer. In some cases, the developer's express consent is required, and additional fees or tax consequences may arise. If you're already considering reselling the property before completion at the time of purchase, you should definitely clarify this with your lawyer before signing the contract.
New build or resale property?
Either can be the right decision.
Who is a new build suited to?
A new-build property is particularly suited to buyers who value:
- Modern architecture
- New fittings
- Energy efficiency
- Little need for renovation
- High-quality communal facilities
and who are willing, if necessary, to wait for completion.
Who is a resale property suited to?
A resale property, on the other hand, can be advantageous if you:
- Want to move in immediately
- Prefer an established residential complex
- Want to see the exact surroundings in advance
- Are looking for a particular, well-established location
- Want to renovate a property to your own taste
What matters is not whether a new build or a resale property is "better" in general — but which property better suits your personal plans.
We help you compare new-build developments on the Costa del Sol
Right Casa has access to a wide range of current new-build developments along the Costa del Sol. We can help you compare different developments, locations, prices, floor plans and completion dates. And because we don't work exclusively for a single developer, we can look at various options together with you and help you find the development that best matches what you're looking for.
Interested in a new-build property?
Tell us the location, property and budget you're looking for — and we'll show you suitable new-build developments on the Costa del Sol.
Note: This guide is provided for general information only and does not constitute individual legal, tax or financial advice. Contracts, taxes and legal requirements should be reviewed by suitably qualified independent professionals before purchasing.