The single biggest decision most buyers face on the Costa Blanca — and across the Costa Cálida, Costa del Sol and Costa Almería — is whether to buy a new build off-plan or a resale property. The short answer: a resale is taxed at the regional transfer tax rate (roughly 10% ITP in the Comunitat Valenciana / Alicante side, around 8% in Andalucía), you can complete in 6–10 weeks, and you buy what you can physically see. A new build is taxed with 10% IVA plus AJD stamp duty, is paid in stage payments over the construction period, and typically completes 12–24 months later — but it comes with modern efficiency, warranties and, crucially, a legally required bank guarantee protecting your deposits.
Neither route is "better" in the abstract. The right choice depends on your budget certainty, your timeline, and your appetite for risk. This guide breaks down the real numbers, the process step by step, and the specific safeguards that apply to off-plan purchases in these four coastal regions, so you can decide with your eyes open.
Off-plan (obra nueva / sobre plano) means buying a property directly from a developer (promotor) before — or during — construction, based on plans, specifications and a show home. You reserve a unit, sign a private purchase contract with a payment schedule, and complete once the building is finished and has its licence of first occupation.
Resale (segunda mano / reventa) means buying an existing, previously owned property from a private vendor. The classification matters because it changes which taxes you pay: a first transfer of a brand-new home attracts IVA and AJD; a second or later transfer attracts ITP transfer tax. A four-year-old villa being sold by its original owner is still a "resale" for tax purposes.
This is where the two routes genuinely diverge. On the Costa Blanca and Costa Cálida (Alicante / Murcia side of the Comunitat Valenciana and Región de Murcia), and on the Costa del Sol and Costa Almería (Andalucía), the headline transaction taxes differ by both region and property type.
| Region | New build (off-plan) | Resale |
|---|---|---|
| Costa Blanca (Comunitat Valenciana / Alicante) | 10% IVA + AJD stamp duty (~1.5%) | ~10% ITP |
| Costa Cálida (Región de Murcia) | 10% IVA + AJD stamp duty (~1.5%) | ~8% ITP (Murcia) |
| Costa del Sol (Andalucía / Málaga) | 10% IVA + AJD stamp duty (~1.2%) | ~7% ITP |
| Costa Almería (Andalucía / Almería) | 10% IVA + AJD stamp duty (~1.2%) | ~7% ITP |
Rates are indicative and subject to change; AJD (Actos Jurídicos Documentados) and ITP percentages are set by each autonomous community and are periodically revised. Always confirm the current figure with your lawyer before signing.
Note that IVA is charged at 10% on residential new builds nationally, but the accompanying AJD stamp duty is set regionally — so Andalucía's Costa del Sol and Costa Almería carry a slightly lower AJD than the Comunitat Valenciana's Costa Blanca. Plots of land, commercial units and garages sold separately can attract 21% IVA, so check exactly what your contract covers.
On top of the transaction tax, both routes share the same additional costs, which together push your total to roughly 11–14% above the purchase price:
Unlike a resale — where you pay a reservation deposit, then usually 10% on the private contract, then the balance at completion — off-plan payments are spread across construction. A typical Costa Blanca or Costa Cálida developer schedule looks like this:
The exact split varies by developer, so read the schedule carefully. IVA is generally applied to each instalment as it is paid, with AJD settled at completion. Because your money leaves your account long before you receive keys, the legal protection around those payments is critical — which brings us to the bank guarantee.
Under Spanish law, when you pay money towards an unfinished home, the developer must protect those funds. This is done through a bank guarantee (aval bancario) or an insurance policy covering every amount you pay in advance, plus interest. If the developer goes bust, fails to obtain the licence of first occupation, or does not deliver on time, you are entitled to recover your money.
Practically, this means:
This is the number-one due-diligence point on any new build purchase across the Costa Blanca, Costa Cálida, Costa del Sol and Costa Almería. Never pay a stage instalment without confirming your guarantee is in place. A reputable agent and an independent lawyer will insist on it.
| Stage | Resale | Off-plan (new build) |
|---|---|---|
| Reservation to private contract | Days to 2 weeks | Days to 2 weeks |
| Contract to completion | 4–8 weeks | 12–24 months (construction) |
| Move-in / keys | ~6–10 weeks total | On completion after licence of first occupation |
A resale gets you into your Spanish home within roughly two to three months. Off-plan asks for patience: construction on a Costa Blanca development can run anywhere from around a year for the final phase of an established project to two years or more for a scheme launched from scratch. Delays happen — weather, supply, licensing — which is exactly why the bank guarantee and a clearly defined delivery date in your contract matter.
Choose off-plan if you value energy efficiency and modern design, you can wait 12–24 months, and you want to spread payments — and you are comfortable doing thorough due diligence on the developer and bank guarantee. New build stock is strongest inland of the Costa Blanca resorts, around the Costa Cálida's Mar Menor golf developments, and in the newer coastal zones of the Costa del Sol and Costa Almería.
Choose resale if you want to move in quickly, prefer to buy what you can see, value a mature community, or are buying in Andalucía where the lower ITP can offset the appeal of a new build. Resale is also the practical choice for classic frontline or old-town properties, which are rarely built new.
On tax alone, a resale is often slightly cheaper on the Costa Blanca because ITP (~10%) is close to the combined IVA + AJD on a new build — but in Andalucía (Costa del Sol, Costa Almería) the lower ITP makes resale noticeably cheaper on tax. However, new builds typically have lower running and maintenance costs, so compare the whole picture, not just the transaction tax.
On a brand-new home bought from the developer (its first sale) you pay 10% IVA plus AJD stamp duty. On a resale you pay ITP transfer tax instead — roughly 10% on the Costa Blanca and Costa Cálida-Alicante side, and around 7–8% in Andalucía and Murcia. You never pay both.
If your off-plan payments are properly protected by a bank guarantee or insurance policy, you are legally entitled to recover the amounts you paid plus interest if the developer fails to deliver or complete. This is why you must confirm the guarantee is in place before paying any stage instalment.
Yes. Many buyers pay the stage payments from savings and arrange a Spanish mortgage that draws down at completion. Some developers also subrogate (transfer) their construction loan to buyers. Speak to your lawyer and a mortgage broker early, as valuation is based on the finished property.
Spanish law provides tiered cover on new builds: up to ten years for major structural defects, three years for defects affecting habitability (installations), and one year for finishing defects. Always carry out a snagging inspection before completion.
It can be, if you buy early in a well-located, properly guaranteed development, as prices may rise before completion. But it carries more uncertainty than a resale. Treat any potential appreciation as a bonus, not a guarantee.
Whether you're drawn to a modern off-plan villa or a ready-to-move-in resale, our team knows the Costa Blanca, Costa Cálida, Costa del Sol and Costa Almería inside out — including which developers offer solid bank guarantees and where resale value is strongest. Contact Mediter Real Estate today and we'll help you weigh the costs, risks and timelines for your specific budget and find the right property on the coast.
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