Off-Plan vs Resale: The Core Differences
When buying property in Spain, one of the first decisions is whether to purchase off-plan (from a developer, before or during construction) or buy a resale property (an existing home from a private seller). Each route has distinct advantages, costs, and risks.
| Factor | Off-Plan | Resale |
|---|---|---|
| Purchase tax | 10% IVA + 1–1.5% AJD (stamp duty) | 6–10% ITP (transfer tax, varies by region) |
| Customisation | Often possible — finishes, layout, fixtures | Buy as-is; renovations at your cost |
| Move-in timeline | 12–30 months (depends on construction stage) | 4–12 weeks after signing |
| Price certainty | Price locked at contract signing | Negotiable; market-dependent |
| Deposit protection | Bank guarantee or insurance required by law | Contrato de arras (10% deposit with penalty clauses) |
| Condition | Brand new, modern energy standards | Varies — inspection advisable |
| Location flexibility | Limited to where developers are building | Wider choice including established neighbourhoods |
| Capital growth risk | Potential for appreciation during construction | Value depends on market at time of purchase |
Buying Off-Plan: What You Need to Know
How the payment works
Off-plan purchases typically follow a staged payment structure. A common schedule looks like this:
- Reservation deposit: €3,000–10,000 to hold the unit (usually within 7–14 days of reservation)
- Contract signing: 20–30% of the purchase price minus the reservation deposit
- During construction: some developers request further staged payments (e.g., at foundations, structure completion)
- Completion (entrega de llaves): the remaining 60–70% is paid at the notary when the property is delivered
If you're financing with a mortgage, the bank loan is arranged to be available at completion. The pre-completion payments must come from your own funds.
Buyer protection under Spanish law
Spain's Ley de Ordenación de la Edificación (LOE) — the building regulation law (Ley 38/1999) — requires developers to protect buyers' deposits through either a bank guarantee (aval bancario) or an insurance policy. This means that if the developer fails to complete the project or goes bankrupt, your payments are protected and must be returned.
Always verify that the developer has provided a bank guarantee or insurance certificate covering your deposit payments. Your lawyer should confirm this before you sign the contract and make any payment beyond the initial reservation.
Additionally, the LOE establishes warranty periods for new construction:
- 1 year for finishing defects (paint, minor fittings)
- 3 years for habitability issues (insulation, plumbing, waterproofing)
- 10 years for structural defects (foundations, load-bearing elements)
The snagging process
Before accepting the property at completion, you (or a professional surveyor) should conduct a snagging inspection — known as the repaso de obra. Walk through the property and note any defects: scratches, misaligned doors, plumbing issues, incomplete finishes. Present the list to the developer; they are obligated to fix defects before or shortly after handover.
Buying Resale: What You Need to Know
The process
Resale purchases follow the standard Spanish buying process: legal checks (nota simple, debt verification), reservation contract, private purchase agreement (contrato de arras with 10% deposit), and completion at the notary. The entire process can be completed in 4–12 weeks.
For a full walkthrough, see our step-by-step buying guide.
What to check
Resale properties require more due diligence than new-builds because you're inheriting the property's history:
- Structural condition — older properties may need roof repairs, updated wiring, or plumbing work. Budget for a professional survey if the property is more than 20 years old.
- Legal compliance — verify that any extensions, terraces, or pools have building permits. Unlicensed construction is common in some areas, particularly rural properties and older coastal developments.
- Debts attached to the property — unpaid IBI (property tax), community fees, or utility bills transfer to the new owner. Your lawyer should obtain certificates confirming all debts are clear.
- Energy efficiency — older properties often have poor energy ratings (E, F, or G). This affects both utility costs and potential future regulations.
Negotiation
Unlike off-plan prices (which are set by the developer and rarely negotiable), resale prices are open to negotiation. The scope depends on market conditions, how long the property has been listed, and the seller's motivation. In a buyer's market, discounts of 5–15% from the asking price are not unusual. In high-demand areas like Marbella's Golden Mile, properties may sell at or above asking price.
Which Option Suits You?
The right choice depends on your circumstances. Off-plan works well if you have time before you need the property, want modern construction with energy efficiency, and are comfortable with staged payments. Resale is better if you need to move quickly, want to see exactly what you're buying, or prefer established neighbourhoods with mature gardens and community infrastructure.
In either case, engage an independent lawyer, understand the full tax and fee structure, and budget for all costs — not just the headline price.