Off Plan vs Resale Spain: Which Is Right for You

This guide is for foreign buyers choosing between off-plan and resale on the Costa del Sol. You will learn the real costs, the risks, and which option fits your goals. By the end, you will know which path is right for you, with honest pros and cons for both.

Quick summary: Off-plan means buying a new home from a developer before it is built: lower launch price, a 10-year warranty, and a payment plan of a reservation fee plus staged instalments (about 20% to 40% before completion, often around 30%) with a 60% to 80% balance at the keys, all protected by a mandatory bank guarantee - but you wait. Resale means buying a home that has had an owner before: you pay about 10% at the arras and 90% on completion, see exactly what you get, can move in fast and often negotiate, but you do more checks. On a 500.000 euros home, expect about 12% to 14% extra costs for off-plan and 9% to 12% for resale.

The numbers that matter:

• 12% to 14% extra costs, off-plan.
• 9% to 12% extra costs, resale.
• 10 years warranty on new-build.
• 4 to 12 weeks resale purchase speed.

What you will learn

• Off-plan vs resale: the quick difference
• Off-plan: pros, cons and how you pay
• Resale: pros, cons and how you pay
• The real cost difference (with numbers)
• Side-by-side comparison
• Which one is right for you?
• Risks and how to stay safe

Off-plan vs resale: the quick difference

The choice is simple to define:

Off-plan

A type of new-build. You buy from a developer before the home is finished. You buy from the plans, and you wait for it to be built.

New-build, ready

The developer's home is built but never lived in. Move-in ready, from a developer.

Resale

The home has had at least one owner before. You buy it on the second-hand market, from a private owner.

All three are common on the Costa del Sol. Off-plan and new-build come from a developer. Resale comes from a private owner. Each has clear pros and cons.

Off-plan: pros, cons and how you pay

Off-plan suits buyers who want a modern home and can wait. You often pay a lower "launch" price, and the home may rise in value before it is finished.

The pros:

• Lower launch price. Early buyers often pay less than the final price.
• Value growth. Prices can rise during the build, in good areas.
• Modern and efficient. New homes meet current rules for insulation and energy. Lower bills, more comfort.
• You can choose finishes. Often you pick tiles, kitchens and layouts.
• Move-in ready when done. No renovation, with pools, gyms and gardens.
• A 10-year warranty. By law, the developer must cover structural defects for 10 years.

The cons:

• You wait. Building takes time, and delays can happen.
• You buy partly unseen. You judge the view and quality from plans and a show home.
• No rental income yet. The home earns nothing until it is finished.

How you pay off-plan. You pay in stages, not all at once:

• A fixed reservation fee to hold the home, usually about 6.000 to 10.000 euros.
• Staged instalments during the build. In total these come to about 20% to 40% of the price before completion (often around 30%).
• The rest (about 60% to 80%) at completion, when the Licence of First Occupation is granted and you get the keys.

The big safety rule: every euro you pay before completion must be protected by a bank guarantee or insurance (Law 57/1968, Ley 20/2015). This is Spanish law. If the developer fails to finish, you get your money back.

Real example. You buy an off-plan flat at 500.000 euros. A typical staged plan looks like this, with each payment before the keys covered by a bank guarantee:

• 8.000 euros - reservation fee (counts toward the price)
• 150.000 euros - staged during the build (about 30%)
• 350.000 euros - balance at completion (about 70%)

Without that guarantee, your money is at risk.

Danger: Never pay a developer without a bank guarantee. This is the single biggest off-plan risk. If a developer cannot show one, walk away. Also check the developer's track record - ask to see homes they finished before.

Resale: pros, cons and how you pay

Resale suits buyers who want certainty and speed. You can stand in the home, see the view, and feel the area before you buy.

The pros:

• What you see is what you get. Real layout, real view, real light, real neighbours.
• Faster. The whole purchase can take about 4 to 12 weeks.
• Room to negotiate. Resale prices are often open to an offer. Discounts of 5% to 15% are common in a buyer's market.
• Prime locations. Many beachfront and town-centre spots have no new-build land left.
• Income now. You can rent it out or move in straight away.
• Character. Some buyers love older, traditional homes.

The cons:

• Older condition. It may need a new kitchen, roof or wiring.
• Lower energy rating. Older homes can cost more to heat and cool.
• No 10-year warranty. You buy it as it is.
• More checks needed. You inherit the home's history, so due diligence matters more.

How you pay resale. The structure is lighter:

• About 10% at the private purchase contract (the contrato de arras, the deposit contract).
• The remaining 90% at completion, at the notary.

Real example. You buy a resale flat listed at 500.000 euros. You offer and agree 470.000 euros (a common saving):

• 500.000 euros - listed price
• 470.000 euros - agreed after negotiation
• 47.000 euros - 10% at the contract
• 423.000 euros - balance at completion

You could have the keys in about 4 to 8 weeks, far faster than waiting for an off-plan build.

Bonus tip: For any resale home over about 20 years old, pay for an independent survey. A few hundred euros now can reveal damp, old wiring or roof problems that would cost thousands later. The seller does not have to tell you everything - a survey protects you.

The real cost difference (with numbers)

This is where many buyers get a surprise. The two options are taxed differently. On the Costa del Sol (Andalucía region) in 2026:

• Off-plan / new-build: 10% IVA (VAT) plus about 1.2% AJD (stamp duty).
• Resale: 7% ITP (transfer tax). No VAT, no AJD.

Then both add notary, Land Registry and legal fees. So your all-in extra cost is about 12% to 14% for off-plan or new-build, and about 9% to 12% for resale. Here is the same 500.000 euros home, both ways.

Off-plan / new-build

• 50.000 euros - 10% IVA
• 6.000 euros - 1.2% AJD (stamp duty)
• About 1.500 euros - notary plus Land Registry
• About 6.050 euros - lawyer (1% plus VAT)
• Total extra: about 64.000 euros

Resale

• 35.000 euros - 7% ITP
• None - stamp duty (AJD)
• About 1.500 euros - notary plus Land Registry
• About 6.050 euros - lawyer (1% plus VAT)
• Total extra: about 43.000 euros

So on tax alone, resale is lighter - about 21.000 euros less on a 500.000 euros home. But remember: off-plan often starts at a lower price and can grow in value before completion. So the cheaper tax does not always mean the cheaper deal overall.

Bonus tip: Whichever you choose, budget the full extra cost from the start. A 500.000 euros home is really a 543.000 to 564.000 euros purchase once tax and fees are in. This is the hidden-cost trap that catches foreign buyers most often.

Side-by-side comparison

Here is the whole picture.

Off-plan

• Move in: after the build
• Speed: months to years
• How you pay: reservation fee, then 20% to 40% staged during the build, then 60% to 80% at completion
• Negotiation: limited (set by developer)
• Main tax (Andalucía): 10% IVA plus 1.2% AJD
• All-in extra: about 12% to 14%
• Energy: high (modern)
• Warranty: 10-year structural
• See before you buy: no (plans only)
• Deposit protection: bank guarantee (by law)
• Rental income: only after completion

Resale

• Move in: straight away
• Speed: about 4 to 8 weeks
• How you pay: about 10% at the arras, then 90% at completion
• Negotiation: often 5% to 15% off
• Main tax (Andalucía): 7% ITP
• All-in extra: about 9% to 12%
• Energy: often lower (older)
• Warranty: none
• See before you buy: yes
• Deposit protection: standard arras deposit
• Rental income: immediate possible

Which one is right for you?

Both can be a smart choice. It depends on your goal.

Choose off-plan if

You want a modern, low-maintenance home, you can wait, and you like the chance of value growth before completion. Good for buyers focused on a brand-new home or long-term gain.

Choose resale if

You want to see the exact home, move in or rent fast, buy in a prime spot, or negotiate the price. Good for buyers who value certainty and location.

There is no single "better." There is only what fits your timeline, budget and plans.

At Spain Developments, we focus on new-build and off-plan homes on the Costa del Sol, and we only work with developers who give a proper bank guarantee. We are an independent buyer's agent - the developer pays our fee, so you pay no buyer fee. We check the licences, the guarantee and the contract for you. Feel free to contact us to compare real options side by side.

Risks and how to stay safe

Be honest about the risks of each path:

• Off-plan: no bank guarantee. The top risk. Never pay without one.
• Off-plan: weak developer. Check their finished projects and reputation.
• Off-plan: delays. Build a buffer into your plans, and read the delivery date in the contract.
• Resale: hidden debts. Unpaid taxes or community fees can pass to you. Your lawyer checks the nota simple (the Land Registry extract).
• Resale: hidden faults. Get a survey on older homes.
• Both: illegal builds. Confirm the licence and, for new-build, the first occupation licence.
• Both: dishonest agents. Ask for the full price and all costs in writing.
• Both: currency risk. If you pay in pounds, krona or zloty, lock your rate with a broker so the cost does not move.
• Both: okupas (squatters). A real fear for foreign owners. Gated, alarmed estates and a watched home are the best defence.

Warning: Always use your own independent lawyer, never the seller's or developer's. This one step protects you against almost every trap above, for both off-plan and resale.

Still not sure which suits you? We help you compare safe off-plan and new-build options side by side, with the licences, guarantees and contracts checked for you, and no buyer fee. Feel free to talk to Spain Developments.

Conclusion

Off-plan and resale are both good ways to buy on the Costa del Sol - the right one depends on you. Off-plan gives a modern home, staged payments and possible growth, but you wait and must have a bank guarantee. Resale gives certainty, speed and a chance to negotiate, but needs careful checks. On a 500.000 euros home, expect about 12% to 14% extra for off-plan and 9% to 12% for resale. At Spain Developments, we help you compare safe options with no buyer fee. When you are ready, feel free to contact us.