Resale vs New Build in Spain: How the Extra Costs Compare

In Spain, buyers often get as far as comparing asking prices between a resale apartment and a new-build unit, then discover that the final bill is shaped just as much by taxes and fees as by the purchase price itself. A resale home carries a regional transfer tax, while a new build adds VAT and a stamp duty instead, on top of notary, land registry, gestoría and valuation costs that apply either way.

For a non-resident buyer coming from the UK, these differences also interact with the mortgage: the bank will ask for proof of income, bank statements and details of existing debts from the UK, usually with a sworn translation, before it can confirm how much of the purchase it is willing to finance.

When you buy a resale home in Spain, the main extra cost is the transfer tax, known in Spain as ITP. It is set by the regional government, not nationally, so the exact rate depends on where in Spain the property sits and sometimes on the price bracket. This tax is paid once, shortly after completion, and your gestoría normally handles the filing.

Because ITP is calculated on the property's value rather than on a fixed scale, it is worth asking your adviser or notary for the current regional rate before you commit, since it can change from one year to the next and differs from one Spanish region to another.

A new-build purchase in Spain is taxed differently: instead of ITP, you pay VAT at 10% on the price, plus a stamp duty that is also set regionally. Both are usually settled at completion, and your gestoría should confirm the exact stamp duty rate that applies in Spain before you sign.

Because VAT and stamp duty are calculated on the full purchase price, buyers sometimes assume a new build is automatically more expensive than a resale home once tax is added. That is not always the case: the comparison depends on the resale property's ITP rate and on the new build's stamp duty rate, both of which vary.

Beyond transfer tax or VAT and stamp duty, every purchase in Spain involves the same group of costs: notary fees for signing the deed, land registry fees for recording your ownership, gestoría fees for handling paperwork and filings, and a bank valuation if you are applying for a mortgage. None of these depend on whether the home is resale or new build, though the land registry can take longer to process at busy times.

For a non-resident buyer there is one more line to plan for: currency conversion. Since the United Kingdom uses the pound sterling rather than the euro, the exchange rate on the day you transfer funds can move the final amount you actually pay, so it is worth asking your bank or currency provider for a clear quote before completion.

Spanish banks usually ask non-resident buyers for a larger deposit than they would ask a resident, and the exact share depends on the bank, your country and your personal profile — it does not change because the property is resale rather than new build. Mortgage terms in Spain usually run until the borrower is around 70 to 75 years old, with fixed, variable (linked to Euribor) and mixed-rate options available.

At Colibrí Finances we compare more than 20 Spanish banks, prepare your file and translate what each one asks for, whether you are buying a resale home or reserving a new-build unit still under construction. The study is free and without obligation, and we only charge a fee if you go ahead with a signed mortgage, agreed in writing beforehand.

If you are weighing a resale home against a new build in Spain, ask for the exact regional transfer tax rate or the exact stamp duty rate in writing, since both affect your final budget more than most buyers expect. Also note that the Spanish Golden Visa route for property investors ended on 3 April 2025, so residence through a property purchase is no longer an option to plan around.

Spain and the United Kingdom have a double taxation agreement, and once you own property here you will need to file an annual non-resident income tax return (Modelo 210); a local tax adviser can confirm exactly how this interacts with what you report to HMRC.

Spain is a relatively short flight away from most UK airports, making regular visits to a Spanish property straightforward for owners based in Britain. Many British buyers are drawn to Spain for its climate, coastal lifestyle and established expatriate communities. One practical point to bear in mind is that Spanish inheritance law differs from UK rules, so it is worth taking specific advice on how it may affect the property and one's estate. Currency movements between sterling and the euro can also affect the overall cost of purchase and ongoing expenses.

Spain and the United Kingdom have a double taxation agreement in place, and a local tax adviser should confirm how rental income or gains from Spanish property must be declared and reported to HMRC.

As the United Kingdom is no longer an EU member state, British citizens may stay in Spain for up to 90 days in any 180-day period without a visa, and must apply for a visa or residence permit for longer stays.

Since the United Kingdom uses the pound sterling (GBP) rather than the euro, buyers should factor in exchange-rate movements and currency conversion costs when paying for a property or transferring funds to Spain.