2025-10-14
Your essential guide to navigating the Spanish property market with confidence.
When searching for your dream home under the Spanish sun, one of the first decisions you’ll face is whether to buy a new-build property (obra nueva) or a resale home (segunda mano). Both have their unique advantages — and understanding the legal and practical differences between them can help you make the right choice.
Let’s take a closer look at what sets these two paths apart.
Buying a New-Build Property (Obra Nueva)
If you dream of a modern home with the latest design, energy efficiency, and no renovation worries, a new-build might be your perfect match. These properties are bought directly from the developer, often while still under construction.
The process
The process usually starts with a reservation agreement and a small deposit (around €6,000–10,000). Then comes a pre-sale contract where buyers pay 10–20% of the property’s price. If the home is still being built, payments are made in stages until the final signing before a notary, when the property is officially handed over.
Taxes and Legal aspects:
Instead of the second-hand transfer tax (ITP), new builds are subject to:
- VAT (IVA) – 10% of the purchase price.
- Stamp Duty (AJD) – 1.2–1.5%, depending on the region.
Buyers also benefit from developer warranties required by Spanish law (Ley de Ordenación de la Edificación):
- 10 years for structural defects,
- 3 years for installation issues,
- 1 year for finishing defects.
Funds paid during construction are protected by a bank guarantee, ensuring your investment is safe even if the project is delayed.
Why choose a New Build?
- Brand-new condition and high energy efficiency.
- Full legal security and no previous owners.
- Option to personalize materials, finishes, and layouts.
- Lower maintenance and repair costs.
However, it’s worth noting that taxes and waiting times are typically higher than for resale properties — especially if you’re buying off-plan.
Buying a Resale Property (Segunda Mano)
For many, the charm of an established home in a well-loved neighborhood is unbeatable. Resale properties are already built and owned by individuals, making the process quicker and often more flexible.
The process
After reserving the property and signing a private purchase contract (Contrato de Arras) with a 10% deposit, both parties proceed to the final deed signing before a notary. From start to finish, it typically takes 1–2 months.
Taxes and Legal aspects:
For resale homes, buyers pay:
- Property Transfer Tax (ITP) – between 6% and 10%, depending on the region.
There’s no VAT or Stamp Duty (AJD).
Before purchasing, it’s crucial to check that the property is free from debts and encumbrances. A lawyer will verify:
- the property registry (Registro de la Propiedad),
- community fees,
- utility bills, and
- local taxes (IBI).
Why choose a Resale home?
- Move-in ready — no waiting for construction.
- Often located in established areas close to the beach or city centers.
- Lower taxes compared to new builds.
- Room for price negotiation.
On the downside, resale properties may require renovation or modernization, and buyers won’t have developer guarantees.
New Build vs. Resale: at a glance
| Aspect | New Build | Resale |
| Main Tax | VAT 10% + AJD | ITP 6–10% |
| Guarantee | Yes (1–10 years) | No |
| Waiting Time | Longer | Immediate |
| Condition | Brand new | Used |
| Legal Safety | Very high | Requires checks |
| Customization | Possible | Limited |
Finding what fits You
Choosing between a new build and a resale home in Spain comes down to lifestyle and priorities.
If you value modern design, efficiency, and peace of mind, a new property may be your best choice.
If you’re drawn to character, established communities, and quick move-ins, a resale property might be the one.
At Loriini Properties, we guide our clients through both paths — from legal verification and negotiation to interior design and furnishing. Whatever your choice, our team ensures your buying journey is safe, transparent, and inspiring.
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