New Build Property
Definition
A new build property is a residential property that has been recently constructed and has not been previously owned or occupied. In Spain new builds are typically sold with a 10-year structural guarantee (garantia decenal), full energy certification, and all modern building standard compliance. New build purchases are subject to VAT (10%) rather than Transfer Tax (ITP) which applies to resale properties.
Why It Matters
New build properties offer modern construction quality, energy efficiency, warranties and the ability to customise finishes. They attract VAT rather than ITP which affects the total purchase cost calculation.
Where It Appears in the Buying Process
New build is the context for the majority of off-plan purchases. Understanding the difference between new build and resale is important for tax calculation and buying cost budgeting.
Related Questions
What Is Off-Plan Property?
Off-plan property means buying a home before or during its construction, based on architectural plans and show units rather than the finished building.
What Are the Buying Costs for a New Build in Spain?
Buying costs for a new build in Spain typically add 12% to 15% on top of the purchase price, including 10% VAT, 1.5% AJD stamp duty, legal fees, notary and Land Registry costs.
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