New build vs resale in Spain: taxes, guarantees, checks
New build vs resale in Spain: VAT or transfer tax, how off-plan payments are protected, the ten-year insurance, snagging, and the checks a resale needs.
Last checked 17 October 2026
What you will learn
- Which purchase taxes apply to a new build and to a resale
- How payments to a developer are protected by law
- What the ten-year insurance covers, and when it is missing
New build vs resale in Spain is first a question of tax and legal protection, then of taste. A new home bought from the developer pays VAT, comes with a ten-year structural insurance and, if you pay during construction, with a legal guarantee for your money. A resale pays transfer tax instead, and its protection comes from the checks you make before you sign. Here is how each side works in the Comunitat Valenciana in October 2026.
The taxes
New build. The first sale of a new home by the developer pays VAT at 10%, including up to two parking spaces and annexes sold with it, as the Agencia Tributaria page on VAT or transfer tax explains. On top comes stamp duty (AJD) on the deed, which in the Comunitat Valenciana is 1.4% since 1 June 2026, or 0.1% when the home is bought as the buyer's main residence, under Valencian Ley 13/1997, article 14.
Resale. A home sold for the second time or later pays transfer tax (ITP) instead: 9% in the Comunitat Valenciana since 1 June 2026, and 11% when the property is worth more than €1,000,000. The tax base is the Cadastre's reference value (valor de referencia), or the price if that is higher, under article 10 of the transfer tax law.
The two-year rule. A new home that has been used without a break for two years or more by people other than the buyer, for example let by the developer, no longer counts as a first sale, so it pays transfer tax, not VAT. Our guide to purchase tax in the Comunitat Valenciana covers reduced rates and how the tax is paid. Confirm the tax on your own purchase with the notary or a tax adviser before you sign.
Buying off plan: how your payments are protected
When you pay a developer before the house is finished, the building law, Ley 38/1999, protects you. From the moment the building licence is granted, the developer must guarantee the return of every payment, plus the taxes paid and legal interest, through a surety insurance or a bank guarantee, in case the work does not start or is not finished by the agreed date. The money must go into a special bank account, kept apart from the developer's other funds and used only for the building, under the first additional provision of the building law (Ley de Ordenación de la Edificación).
The guarantee is yours. Each buyer receives an individual policy or guarantee for the amounts paid. If the developer does not repay within 30 days of a formal demand, you can claim directly from the insurer or the bank. A bank guarantee lapses if you do not demand repayment within two years of the developer's breach, so do not wait. Ask to see the building licence and the guarantee before you pay.
After handover: ten, three and one year
The same law sets how long those who built the house answer for defects, counted from the day the finished work is formally handed over: ten years for structural defects that affect the stability of the building, three years for defects in parts or installations that make it fail the habitability requirements, and one year for finishing work, which is the builder's responsibility (article 17).
For homes, the ten-year structural cover must be backed by insurance or a financial guarantee, and a notary will not authorise, nor the land registry record, the deed declaring a new building without proof of it (articles 19 and 20). There is one exception that matters when you buy a recent resale: a private person who built a single house for their own use does not need the policy, but if they sell within ten years they must take it out for the years that remain, unless the buyer expressly waives it. When a house is less than ten years old, ask for the policy, and discuss any waiver with your lawyer before you agree to it.
Snagging. Before you sign the deed for a new home, walk through it with a list and have every defect written down. Ask for the building book (Libro del Edificio), which the law says must reach the owners: the final project, the handover certificate, the list of everyone who worked on the building, and the instructions for use and maintenance (article 7).
Buying a resale: what replaces the guarantees
A resale has no developer guarantee, so the protection lies in the checks: the land registry entry, the match with the Cadastre, licences and first occupation, debts on the property, and any extension built without a licence. Our guide to property due diligence in Spain lists them in order. A survey of the roof, the pool, the plumbing and any damp tells you what the price does not.
Energy. Every home offered for sale must show its energy rating in the advert, and a copy of the registered energy certificate is attached to the sale contract. The certificate is valid for up to ten years, or five for a G rating, under Real Decreto 390/2021. Comparing the ratings of a new and an older house shows part of what each will cost to run.
Time, place and condition
Time. A resale can be completed within weeks once the checks are done. An off-plan home takes as long as the build, and delivery dates can move.
Place. On the Costa Blanca North the established coves and town centres are largely built up, so the best positions there usually come as resales, while new builds are more often on plots higher up the hills or in newer areas.
Condition. A new home needs little work at first. An older one may need a renovation, which belongs in the budget from the first viewing.
Decide first what matters more to you: a position you can see and judge today, or a new house built to current standards that comes with legal guarantees. Either way, have an independent lawyer check the contract and the guarantees before you pay anything. Then see the new build villas in Benissa on the market now.
Homes for this guide
Benissa
Written by Nicolas Strebel.