Off-plan vs resale apartments on the Costa del Sol — which path for which buyer

Off-plan and resale are the two paths to apartment ownership on the Costa del Sol. The portal listings make them look similar — same kind of photos, similar price ranges, similar locations. The actual differences are substantial: tax treatment, timeline, risk profile, what you get on completion. This guide walks through them honestly.

The definitions

Off-plan — buying directly from the developer before (or during) construction, typically with a staged payment schedule. You don't move into a finished apartment; you move into an apartment that will be built to specification by a future date.

Resale — buying an existing finished apartment from its current owner. The standard transaction most buyers picture when they think "buying an apartment".

(There's also a third path: "new-build resale" — buying a recently-completed apartment that the developer or first owner is reselling. Tax-wise this can be either ITP or IVA+AJD depending on whether it's first or second transmission. Confirm with your lawyer.)

Tax difference — the headline

Item	Off-plan / new-build (first transmission)	Resale (Andalucía 2026)
Main tax	10% IVA (Spanish VAT)	7% ITP (flat rate)
Stamp duty	1.2% AJD	Not applicable
Sub-total tax	11.2% of purchase price	7% of purchase price
Plus notary/registry/lawyer	~1.5–2%	~1.5–2%
Total typical closing costs	~12–14%	~9–10%

The tax gap is real. On a €500,000 apartment, off-plan/new-build closing costs are typically €60,000–€70,000; resale closing costs are typically €45,000–€50,000. A roughly €15,000–€20,000 difference on a half-million purchase, all else equal.

This doesn't necessarily mean resale is "better value" — it depends on what you're getting for the price. New-build often comes with warranties, energy-efficiency, modern layouts, and amenities that older resale doesn't. But the tax difference should be in your spreadsheet before you compare the headline prices.

Payment schedule

Off-plan typically uses a staged payment schedule. A representative example:

Reservation: €5,000–€20,000 to take the apartment off the market
Contract signing (10–30% of price): on signing the purchase contract
Construction milestones (20–40% over the build period): often tied to specific construction stages
Completion (balance): on receipt of the licence of first occupation and keys

Resale, by contrast, is typically a single reservation fee + 10% deposit (arras) + balance at completion — concentrated over a 6-to-14-week window.

Practical impact: off-plan ties up your money for longer. If the project takes 24 months, you'll have funds deployed for 24 months without owning the asset. The opportunity cost of that money matters.

Timeline reality

The thing that bites foreign buyers most is off-plan completion-date slippage. Spanish off-plan developments regularly run 6 to 18 months behind their contracted completion date. This is not exceptional; it's the norm.

Reasons vary — supply-chain delays, licence-of-first-occupation processing, regulatory inspections, contractor disputes. The developer's contract typically has soft penalty clauses for late delivery, but in practice they rarely yield meaningful compensation.

If you have a hard deadline — UK home sale, kids starting school, job relocation — off-plan is high-risk for that use case. Plan a 12-month buffer between expected and required handover date. If you can't afford that buffer, buy resale.

Quality, warranties, and what you actually get

New-build apartments come with a structural warranty regime under Spanish law (Ley de Ordenación de la Edificación):

10 years on structural defects
3 years on habitability defects (waterproofing, insulation, installations)
1 year on finishing defects

These warranties are backed by mandatory insurance the developer must hold. Real, enforceable, useful.

Resale apartments have whatever warranties have been transferred from the previous purchase, which after 10 years is typically nothing. You're buying as-is. Pre-purchase inspection (which your lawyer's due diligence should include) matters more for resale than for new-build.

Energy efficiency and EPC

New-build apartments completed in the last few years are typically built to EPC ratings of B or A. Older Costa del Sol stock — especially 1990s and 2000s buildings — is commonly C, D, or E. The gap matters for running costs (less air-con load) and for resale (the Spanish government is increasingly pricing in energy efficiency).

If you're optimising for ten-year holding cost, new-build's energy advantage is real. If you're optimising for purchase price and you don't mind running an older A/C system harder, resale wins on cost.

What you're committing to with off-plan

Practical risks specific to off-plan:

Developer insolvency. Rare but not zero. The 1968 Bank Guarantee Law requires developers to hold buyer payments in escrow or under bank guarantee — but only if buyers explicitly request the guarantee in writing. Your lawyer must make sure this is in place.
Change of specification. Developers reserve the right to make minor changes to materials and finishes. Read the contract.
Snagging and handover defects. First-occupant apartments commonly have a snagging list of 20–50 items at handover. Plan for the 3–6 month period after taking keys to get them resolved.
Licence of first occupation (LFO). Required before the apartment can be legally occupied and registered. Some developments have completed the building but haven't yet received LFO from the municipality. Don't pay the final tranche until LFO is in hand.

Where each path makes more sense

Off-plan / new-build typically suits:

Buyers who have time (12+ months) and budget flexibility
Buyers who specifically value modern construction, energy efficiency, and warranty cover
Buyers who want a custom-spec apartment (off-plan typically offers material and layout choices)
Investment-led buyers betting on appreciation over the build period
Buyers willing to absorb timeline slippage

Resale typically suits:

Buyers with a near-term move date
Buyers in established neighbourhoods (Old Town, Sierra Blanca, Puerto Banús — most stock here is resale by definition)
Buyers prioritising character, mature gardens, and proven communities
Buyers optimising on closing-cost percentage
Buyers who want to see exactly what they're buying before they commit

What we'd recommend asking

Whichever path you're leaning toward, the next questions are:

What's your actual move date? If less than 18 months out, off-plan is risky. If 24+ months and you're flexible, off-plan is feasible.
How much of the budget is going on closing costs? The 3–5 percentage-point tax gap matters more on smaller budgets.
Do you want to see the finished thing before you buy? Honest answer matters. Some buyers genuinely can; many cannot.
What does your lawyer say about the specific development? For off-plan especially, the specific developer's track record matters enormously. Some are reliable; some are not.

Off-plan vs resale.

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