Buying new-build & off-plan property on the Costa Blanca

What "new-build" and "off-plan" mean

A new-build is a newly built or under-construction home bought directly in connection with the developer who is building it, rather than from a previous owner. The home has never been lived in, and it usually comes as part of a wider development of apartments, townhouses or villas.

"Off-plan" means buying that home before or during construction — from the plans, drawings and specifications, often with a show home or computer renders to guide you, rather than the finished property. Buying off-plan is common on the Costa Blanca because it lets you reserve a home early, sometimes at a lower entry price, and in many cases choose some of the finishes before it's built. If the building is already complete, it's still a new-build, but you can walk through the actual home before you commit.

How the payments work

A new-build is paid for in stages rather than all at once. The exact schedule is set out in your purchase contract, but it almost always follows this shape:

1. Reservation deposit. A modest reservation fee takes the property off the market and holds it for you while the paperwork is prepared. Your lawyer carries out checks during this period.
2. Private purchase contract + deposit. You sign a private contract with the developer and pay a deposit — often somewhere around 10–30% of the price (less the reservation already paid). This locks in the price and the specification.
3. Staged payments during construction. As the build progresses, you make further interim payments tied to milestones in the construction schedule. Off-plan purchases spread the cost out over the build period.
4. Balance at completion. The remaining balance is paid at completion, at the notary, when the property is finished and the title deed (escritura) is signed and the keys are handed over.

Bank guarantees: your money is protected

This is the single most important thing to check when buying off-plan in Spain. By law, the stage payments you make on an off-plan home should be protected by a bank guarantee or insurance policy (an aval) until the property is completed. That guarantee means that if the developer fails to deliver the home, your paid amounts can be recovered. Always make sure this protection is genuinely in place for every payment you make, and have your lawyer confirm it before you transfer any money.

Taxes on a new-build

New-build and resale homes are taxed differently. A new-build property carries 10% VAT (IVA) on the purchase price, plus around 1.5% stamp duty (AJD, Actos Jurídicos Documentados) — the exact AJD rate is set regionally. That's on top of notary, land-registry and legal fees. For the full breakdown of purchase costs, see my guide to the cost of buying property in Spain.

The pros and cons of buying new-build

A new-build isn't automatically the right choice for everyone — it depends on what you want and your timing. Here's an honest look at both sides.

The advantages:

• Modern design and layout. Open-plan living, contemporary kitchens and bathrooms, and homes built to current tastes.
• Energy efficiency. New construction meets up-to-date building standards, so homes are better insulated and cheaper to run.
• You can choose finishes. Buy early enough off-plan and you can often select tiles, kitchen units and other finishes to suit you.
• 10-year structural warranty. New-builds in Spain come with a ten-year guarantee covering major structural defects.
• Low maintenance. Everything is brand new, so there's little to repair or replace in the early years.

The trade-offs:

• You wait for completion. An off-plan home isn't ready immediately — you may wait months, sometimes more, for the build to finish.
• You often buy from plans. You're committing based on drawings, renders and a show home rather than the finished property in front of you.
• A snagging and handover check. At the end there's usually a snagging stage, where any defects are listed and put right before or shortly after you take the keys.

How I can help

I have access to new developments right across the Costa Blanca — apartments, townhouses and villas — as well as quality resale homes, so we can compare your options side by side. I work in English and Spanish, guide you through each stage, and work alongside your independent lawyer. The figures on this page are indicative and meant as a general guide — always confirm the specifics of any purchase with your lawyer before you commit.

Frequently asked questions

Keep reading