New Build vs Resale in Spain: Real Costs on the Costa Blanca

New build vs resale in Spain comes down to price against certainty. In Alicante province, new homes cost about 29 per cent more per square metre, yet both routes carry similar buying costs of up to 13 to 14 per cent. Resale usually wins on location and speed. New build wins on predictability.

Which is cheaper, new build or resale?

Resale is cheaper per square metre, and the gap on the Costa Blanca is wide. These are the latest registered prices from the Colegio de Registradores, for the second quarter of 2026.

On a 90 square metre flat in Alicante province, that is about €250,200 against €193,770: a gap of around €56,000. These are province-wide averages, so the mix of towns and sizes shifts each quarter.

Recent movement was also different. In the second quarter of 2026, Alicante new build prices slipped 0.1 per cent on the previous quarter while resale prices rose 3.3 per cent.

Most buyers still choose resale. Of 12,298 home sales registered in Alicante province that quarter, 10,137 were used homes, about 82 per cent. Foreign buyers made up 46.43 per cent of purchases in the province, the highest share in Spain, and the British were the largest foreign group nationally.

New build vs resale at a glance

How much are the buying costs on each?

Budget for up to 13 to 14 per cent on top of the listing price either way. The tax has a different name, but the total is close.

On the Costa Blanca, resale tax (ITP) is 9 per cent since 1 June 2026. It was 10. A new build pays VAT (IVA) at 10 per cent. Legal and official costs are up to 4 per cent, and on a new build that includes stamp duty (AJD) of 1.4 per cent since the same date. Our guide to the 9 per cent ITP rate explains the change.

Two resale details catch people out. ITP is charged on the Catastro reference value if that is higher than your price. And if the seller is non-resident, you must hold back 3 per cent of the price and pay it to the Spanish tax office. You will also need a NIE number and, in most cases, a Spanish bank account for either route.

What are the pros and cons of buying a new build?

The advantages

• Modern standard. Better insulation, new installations, lifts and often underground parking.
• Fewer early surprises. Everything is new, so you are less likely to face a big repair straight away.
• Legal cover for defects. Spanish law holds builders responsible for 10 years for structural defects, three years for habitability defects and one year for finishes.
• Ten-year insurance. Developers of housing must take out structural insurance, and it covers later buyers too.
• Ready to live in. Tiles and finished bathrooms are usually included. Some developers add appliances or furniture, depending on the development.

The honest minuses

• Higher price per square metre. See the table above.
• Waiting. Buy off-plan and you are buying a project and a timetable. Delivery can move, so do not plan a move around an exact date.
• Newer locations. The best plots near the sea were often built on decades ago.
• An unproven community. Nobody knows how the owners will run the building until they meet.

Developers often price early phases lower than later ones, which is why some buyers reserve early. That is a pricing choice by the developer, not a promise about value. If you like the Calpe area, see our guide to new builds in Calpe.

How are off-plan payments protected in Spain?

Spanish law requires a developer who takes money before delivery to protect it from the moment the building licence is granted. The rule sits in the first additional provision of the Building Act (Ley 38/1999). It has three parts:

1. A guarantee. Either an insurance policy or a joint bank guarantee from an authorised lender.
2. What it covers. The return of what you paid, including tax, plus legal interest, if building does not start or is not finished on time.
3. A special account. Your money goes into a separate account that the developer can only use for building the homes.

Ask to see the guarantee before you pay, and have your lawyer read it. At Tripinvest ES we work only with developers who hold the required protections, including bank guarantees. Stage payments are in euros, so if your money is in pounds, a moving exchange rate changes what each payment costs you.

What are the pros and cons of buying resale?

The advantages

• Location. Closer to beaches, town centres and shops that already exist.
• Negotiation. Private sellers are more open to it than developers.
• Speed. If the documents are in order, a sale can move fast.
• Renovation potential. Buy with a dated kitchen and make it your own.
• Character. Old town houses and established streets have a feel new blocks cannot copy.

The honest minuses

• More to check. Ownership, debts and legal status all need verifying. Start with a nota simple, and read our guide to the risks of cheap property in Spain.
• Unplanned work. Air conditioning, boilers, windows, damp, kitchens and bathrooms. The bill does not show in the photos.
• Old community issues. Unpaid fees and planned works can follow the flat, so read about community fees in Spain.

An architect's inspection, or at least a visit from a trusted builder, costs extra. It often pays for itself in peace of mind.

What if you plan to rent it out?

Since 3 April 2025, an owner who wants to run tourist lets from a flat needs the express approval of the community of owners, by a three-fifths majority. That changes the comparison. In a resale building the community already exists, so you can ask what has been agreed and read the minutes. In an off-plan block the community only forms at handover, so on the day you sign nobody knows. Tell us at the start if you plan to rent, because it decides which homes are worth viewing.

Which should you choose?

• Winters and retirement, low maintenance: new build, or a well-kept recent resale. Look for lifts, parking and ground level access.
• Walking to the beach and the shops: usually resale.
• Moving in within months: resale, or a finished new build.
• Spreading payments over time: off-plan, with the guarantee checked.
• Character and a project: resale, with a survey and a renovation budget.

There is no single right answer. Set your all-in budget first, pick your towns, then compare real homes. You can start with homes for sale in Torrevieja or see what €500K buys in Costa Blanca North.

Does being British or Irish change the decision?

UK passport holders can stay 90 days in any 180 day period across the Schengen area, and viewing trips count. That favours a home you can check and finish in a few visits, and a new build needs little work once you have the keys. Irish citizens are EU citizens, so the limit does not apply to them.

The proposed 100 per cent tax on non-EU buyers would have targeted second-hand homes, according to The Local. As of late October 2026 it is not in force.

Frequently asked questions

Is it better to buy a new build or resale in Spain?

It depends on what you want most. New build gives you modern standards, communal facilities and legal cover for defects at a higher price per square metre. Resale gives you more choice of location, room to negotiate and often a faster purchase, but it needs closer legal and technical checks.

Is it safe to buy off-plan in Spain?

It can be, if your money is protected properly. Spanish law requires developers to guarantee stage payments by insurance or a bank guarantee from the building licence onwards, and to hold them in a special account. Ask to see that guarantee, and have your lawyer read it before you pay anything.

Is tax higher on new build or resale in Spain?

On the Costa Blanca the difference is small. New build pays VAT at 10 per cent, plus stamp duty of 1.4 per cent. Resale pays ITP at 9 per cent since 1 June 2026. With legal and official costs, the total is up to 13 to 14 per cent on top of the listing price.

How much more does a new build cost in Spain?

In Alicante province in the second quarter of 2026, new homes averaged €2,780 per square metre against €2,153 for used homes, about 29 per cent more. Across Spain the gap was about 8 per cent. The Valencian region sat at about 23 per cent. To judge a real purchase, compare two homes in the same area.

Do new builds in Spain come with a warranty?

Yes, by law. Builders are responsible for finish defects for one year, habitability defects for three years and structural defects for 10 years, counted from acceptance of the works. Developers of housing must also take out 10 year structural insurance, which covers later buyers as well as the first one.

Can you negotiate on a new build in Spain?

Usually less than on resale, because developers work to set price lists. Private sellers tend to be more flexible. Developers do sometimes run offers that add appliances or furniture, depending on the development, so ask what is included in the price before you compare it with a resale home.

Not sure which way to go?

Tell us your budget, how many bedrooms you need, the towns you like, how far from the sea you would accept, and whether you will live there or rent it out. We will send homes that fit and tell you honestly which route suits you. Tripinvest ES is a licensed agency (RAICV 4221), and you get service in English from the first call to the notary. We help you through the reservation and the paperwork, and we keep an eye on deadlines. Our clients don't pay us commission.

Prefer to talk? Call us on +44 20 3888 0008.

Sources

Last checked: October 2026

• Colegio de Registradores: Estadística Registral Inmobiliaria, second quarter 2026
• BOE: Ley 38/1999 on building, articles 17 and 19 and first additional provision
• BOE: Ley 49/1960 on horizontal property, articles 7.3 and 17.12
• BOE: Real Decreto Legislativo 1/1993, article 10 on the ITP tax base
• BOE: Real Decreto Legislativo 5/2004, article 25.2 on the 3 per cent withholding
• RSM: Valencian tax changes under Ley 5/2025
• GOV.UK: entry requirements for Spain
• The Local: status of the proposed 100 per cent tax, October 2026