Is off-plan or resale cheaper in Andalusia?

In pure purchase-tax terms, resale is cheaper — 7% ITP versus 11.2% combined IVA + AJD on new-build, a 4.2 percentage-point gap. In total-cost-of-ownership terms over 10+ years, new-build's energy efficiency and warranty coverage can partially or fully close that gap depending on the specific properties being compared.

Are off-plan deposits safe in Spain?

Yes, under Spanish law. Developers are required to hold a bank guarantee or insurance policy covering 100% of all buyer deposits paid before delivery. Your lawyer must verify the guarantee names your specific purchase before any transfer leaves your account.

How long does each process take from offer to keys?

Resale runs 8–12 weeks from accepted offer to keys, in standard conditions. Off-plan is 18–30 months on genuine early-stage schemes, dropping to 6–12 months on late-stage or near-complete developments.

What is the 10-year warranty on Spanish new-builds?

Under the Ley de Ordenación de la Edificación (Ley 38/1999), Spanish developers are liable for structural defects for 10 years from delivery, backed by a mandatory insurance policy (Seguro Decenal). Additional one-year and three-year warranties cover finishing and habitability defects respectively.

Can I get a mortgage on an off-plan property?

Yes, though the formal mortgage is only signed at notary on completion, not at reservation. Banks will pre-approve based on the scheme documentation and your financial profile so you know the funding is in place, but you only draw down the loan when the property is deliverable.

Off-Plan vs Resale Property in Spain: The 2026 Comparison

Every Costa del Sol buyer faces this question: off-plan or resale? The two options have fundamentally different tax treatment, warranty coverage, risk profiles, and cost bases. The right answer depends on your timeline, risk tolerance, and what you're optimising for. This guide walks through the actual numbers and the decision framework we use with buyers in 2026.

The tax difference is the biggest line item

The single largest cost difference between off-plan and resale on the Costa del Sol is the acquisition tax. It's also the one most buyers underestimate when comparing headline prices.

New-build (off-plan or key-ready from developer): 10% IVA (VAT) + 1.2% AJD (stamp duty) in Andalusia. Total acquisition tax: 11.2%. On a €1M property that's €112,000 in tax.
Resale (from a private seller): 7% ITP (transfer tax) in Andalusia — a flat rate since 2022. On the same €1M property, that's €70,000. A reduced 6% ITP rate applies for first-time buyers of properties under €150,000.
The gap: 4.2 percentage points, or roughly €42,000 on a €1M purchase. Add notary, land registry, and legal fees (1–1.5% of purchase price for both types) and the full acquisition costs run 12–13% on new-build vs 8–10% on resale.

Warranties: where new-build pulls ahead

Where new-build earns back some of the tax premium is in the legal warranty regime. Spain's Ley de Ordenación de la Edificación (LOE, Ley 38/1999) imposes a layered warranty on every new-build transaction:

1-year warranty on finishing defects (paint, tiles, cabinetry, cosmetic issues)
3-year warranty on habitability elements (waterproofing, insulation, installations, thermal / acoustic)
10-year structural warranty, backed by a mandatory insurance policy (Seguro Decenal) the developer must hold before selling

On a resale property, none of these warranties transfer to you. You inherit whatever construction the previous owner(s) accepted. Any latent defect — structural settlement, waterproofing failure, insulation voids — becomes your problem and your repair bill.

Deposit structure: off-plan spreads the capital outlay

Off-plan schemes spread payment across the construction period, which changes the working-capital profile of the purchase meaningfully:

Reservation fee: typically €6,000–€20,000 on reservation day. Refundable in most reservation agreements if the deal doesn't progress to signed contract within a stated window.
Private purchase contract deposit: usually 15–20% of the total price at contract signing (often 30–60 days after reservation)
Stage payments during construction: a further 10–30% in 2–4 instalments tied to construction milestones
Balance at notary on completion: remaining 40–60%
All deposits paid before delivery are covered by mandatory bank guarantees under Spanish law. If the developer fails to deliver, the guarantee reimburses your capital in full.

Resale, by contrast, is a standard 10% reservation deposit at contract signing and the full balance at notary 8–12 weeks later. Less working-capital flexibility but also less timeline risk.

Specifications: new-build's other structural advantage

New-builds on the Costa del Sol consistently ship above resale stock on specification — the gap is large enough that it shows up in ongoing cost structure:

Energy certificates: A- or B-rated on most new-build schemes in 2026; older resale stock typically D–G. Heating, cooling, and hot-water costs reflect this difference over 10+ year ownership.
Ceiling heights: 2.7–3.0m on new-build schemes vs 2.4m on 1980s–1990s coastal construction. Not measurable in euros but real in daily use.
Community amenities: outdoor and indoor pools, gym, Turkish bath, 24/7 security, co-working lounges and concierge are close to standard in mid-tier new schemes. Older resale communities often have a pool and garden only.
Smart-home integration: pre-wiring or full integration standard on new-build; rarely present on pre-2015 resale stock without significant retrofit cost.

When resale wins: pricing, location, and completion timing

Resale still wins on three fronts that matter to many buyers.

Better pricing per square metre in established prime locations. New-build supply in Marbella's Golden Mile and central Puerto Banús is scarce. Resale in those zones is often the only way to buy at the addresses with the longest-established premium.
Immediate completion. Resale transactions close in 8–12 weeks from offer acceptance. Off-plan can be 18–30 months from reservation to keys. If you need the property now, new-build rarely delivers.
Negotiable pricing. Resale lists a price and the seller expects negotiation. New-build developer pricing is much firmer — discounts happen on specific units with long sale cycles, not across the whole scheme.

The decision framework

We walk buyers through this simple framework:

Budget-constrained on a specific area → resale, because the 4% tax saving becomes a bigger fraction of your offer price
Timeline-flexible and willing to wait 18–30 months → off-plan, because you capture the construction-period price increase and get the newer specification
Want the property generating rental income immediately → key-ready new-build or turnkey, because move-in is weeks not years
Focused on a trophy address that's 40+ years old (Golden Mile, central Puerto Banús) → resale, because that's where the stock is
Value community amenity depth (spa, gym, co-working, concierge) → new-build, because older resale communities rarely deliver that package