Beyond the obvious differences in condition and age, buying a new-build or a resale home involves different taxation, with a direct and sometimes significant impact on the total budget you need for the purchase.
The applicable tax depends on the type of home
- New-build home (first transfer, normally bought directly from the developer): taxed under VAT, at the reduced rate of 10% on the purchase price, plus stamp duty (Actos Jurídicos Documentados, AJD), whose rate varies by region.
- Resale home (a transfer following the first sale): taxed under Property Transfer Tax (Impuesto de Transmisiones Patrimoniales, ITP), a regional tax whose rate varies considerably depending on the autonomous community where the property is located.
Why this can amount to a meaningful difference
Although the total (VAT plus stamp duty on new-builds) sometimes comes out similar to the resale ITP in some regions, in others the difference can be substantial, especially where reduced ITP rates exist for certain groups (young people, large families, subsidized housing) that don't always have an equally favorable equivalent under the new-build regime.
Rough guide to applicable rates
| Type of home | Main tax | Approximate rate |
|---|---|---|
| New-build | VAT | 10% (4% for subsidized housing in certain cases) |
| New-build | Stamp duty (additional) | Between 0.5% and 1.5% depending on region |
| Resale | Transfer tax | Between 6% and 10% depending on region, with possible discounts |
These percentages are only a guide and can vary depending on the autonomous community and the specific discounts in force at any given time, so it's always worth confirming the exact rate that applies in your particular region before budgeting for the purchase.
Other differences beyond taxation
Beyond tax treatment, there are other relevant differences between the two types of home when deciding: new-build homes usually come with legal construction warranties for the first few years (covering possible structural or finishing defects), while resale homes don't have that protection, though they usually have a more affordable starting price per square meter in many areas.
How this affects the total savings you need
When calculating how much you need to save to buy, it's essential to use the actual tax rate for your specific autonomous community and the specific type of home you're considering, rather than a generic figure, since the difference between regions can amount to several thousand euros on a mid-range purchase.
Compare the total cost of both options
Our mortgage calculator lets you simulate the resulting installment based on the final amount you need to finance, once these taxes have been factored into the total budget for the transaction.