New-Build vs Resale on the Costa del Sol: Which Gives the Better ROI in 2026?
A British client put this question to me recently: she had €380,000 to spend and had found two properties she liked equally. One was a brand-new two-bedroom apartment near Estepona, completed last year and never lived in. The other was a 2014 resale in the same urbanisation, slightly larger, asking €60,000 less.
Same street. Same pool. Very different financial profiles.
The answer to “which one is better” is not obvious, and anyone who tells you otherwise is either selling you a new-build or a resale. This guide walks through the real numbers on tax, yields, running costs, and capital growth so you can make the call for your own situation.
What “new-build” means in practice
In Spain, “new-build” covers three different purchase scenarios, and they carry different risk profiles:
- Off-plan: you buy from plans before the building exists, typically paying a reservation deposit (around 1% of the price), then 20-30% during construction in staged payments, with the balance on completion. Completion is usually 18-36 months away.
- Under construction: the building is part-built. You sign now, with completion a few months out. Lower risk than pure off-plan; you can see the quality of construction.
- Newly completed, never occupied: the building is finished. You pay in full at signing, same as a resale. The main difference is tax treatment.
This guide covers all three, but the ROI maths is most relevant to off-plan and newly completed.
The tax gap: where new-builds cost you more upfront
This is the biggest financial difference most buyers miss. In Andalucía:
- Resale property: ITP (Impuesto de Transmisiones Patrimoniales) at 7% of the purchase price.
- New-build property: IVA (VAT) at 10% plus AJD (stamp duty / Actos Jurídicos Documentados) at 1.2% = 11.2% total.
On a €380,000 purchase, that difference is significant:
| Resale | New-Build | |
|---|---|---|
| Purchase price | €380,000 | €380,000 |
| Tax | €26,600 (7%) | €42,560 (11.2%) |
| Tax gap | +€15,960 |
That extra €15,960 needs to come back from somewhere for a new-build to match a comparable resale on ROI. Some buyers recoup it through capital growth; others never fully do.
The other fees (notary, land registry, mortgage arrangement if applicable) are broadly the same for both.
Off-plan: the capital growth argument
The bull case for off-plan is real and has played out consistently on the Costa del Sol over the past decade. Buy at today’s prices, wait 18-24 months, collect completion at a higher market valuation.
The numbers behind it: between 2021 and 2025, new-build prices on the Costa del Sol rose by an average of 38% according to Spain’s Ministry of Housing (Ministerio de Vivienda). Buyers who contracted off-plan in late 2021 in areas like the New Golden Mile (between Estepona and Puerto Banús) or the hills above Marbella saw their paper gains materially outstrip the 11.2% tax hit.
A worked example that reflects what we saw in practice:
- Contract signed: October 2022, €350,000
- Completion and handover: April 2024
- Market valuation at completion: ~€430,000
- Capital gain before costs: ~€80,000 (roughly 23%)
- Net of the tax disadvantage over resale (roughly €15,000): still ~€65,000 ahead
That is the best-case scenario. The risks on the other side:
- Developer insolvency. If the developer goes bust mid-construction, you need a bank guarantee (aval bancario) to get your money back. Since the 2007 Law on Housing (updated under the Ley 20/2022), developers must hold funds in a designated account per development, and stage payments must be covered by insurance or a bank guarantee. Verify this yourself before paying any stage payment.
- Completion delays. 6-12 month overruns are common. If you have a mortgage offer, you may need to renew it. If the market shifts, your original valuation may no longer hold.
- Quality snagging. A good snagging survey before signing on completion is non-negotiable. Budget €400-700 for a professional snagging inspector; the list they produce is leverage with the developer.
We covered off-plan in more detail in our guide to buying a new build in Spain.
What resale gets you that new-build can’t
Immediate rental income. If your plan is to let the property while you’re not using it, resale wins on timing. You buy, you furnish (or it may come furnished), you list it. There’s no 18-month wait during which your capital is earning nothing.
On a €380,000 resale apartment in a popular area like Mijas Costa or Estepona town, a reasonable gross short-let yield is 5-6.5% per year based on 20-24 weeks of occupation at current Airbnb market rates. That is €19,000-€24,700 gross per year. Over the 18 months you might have waited for off-plan completion, that is €28,500-€37,000 in rental income you would have missed.
Price negotiation. New-build developers rarely negotiate on headline price; they will offer extras (furniture packs, parking, storage, upgraded appliances) but the price per square metre is usually fixed to protect comparable sales in the same development. Resale vendors negotiate. In the current market (mid-2026), motivated resale sellers are accepting 5-8% below asking in areas with good supply. On €380,000, that is a real-world saving of €19,000-€30,000.
What you see is what you get. Energy certificates, community fee history, any outstanding charges on the community, actual room dimensions vs the plan. With resale you can inspect the building’s maintenance standard before signing anything.
Property size. On the Costa del Sol, resale properties of the same stated square meterage often feel larger because they were built under older planning standards with bigger terraces, thicker walls, and higher ceilings. Many buyers find a 2014 resale at 110m2 feels more spacious than a 2024 new-build at 115m2.
Running costs: where new-builds have a genuine edge
Energy efficiency is where new-builds consistently outperform. Post-2020 construction in Spain must meet much stricter energy standards. Most new apartments carry an A or B energy rating.
A resale from 2010 or earlier is typically rated E or F. The practical difference in utility bills:
- New-build A-rated apartment: electricity bills of roughly €60-90/month in winter (solar thermal hot water, better insulation, heat pump system).
- 2010 resale D-rated apartment: electricity bills of €130-180/month in winter with traditional electric water heater and older air conditioning units.
Over a decade, that is a saving of roughly €700-1,080 per year for the new-build. Discounted at a 5% rate, the present value of that saving over 10 years is around €5,400-€8,300. Not life-changing, but real.
Community fees can go either way. New developments with full spa, concierge, padel courts and resort-style grounds often carry higher community fees (€350-600/month on premium developments) than a simpler resale urbanisation (€100-250/month). Check both before comparing prices.
Rental yield: which type earns more?
Both types can perform well as short-term lets, but new-builds command a premium:
- Short-let platforms (Airbnb, VRBO) show that modern, newly furnished apartments in A-rated buildings consistently achieve 10-15% higher nightly rates and better occupancy than equivalent older properties, simply on presentation and reviews.
- Long-let market: less difference. A tenant paying €1,200/month does not particularly care whether the building went up in 2012 or 2024, provided the property is well maintained.
If your primary goal is short-let yield, the new-build’s premium finish can justify the higher upfront tax cost, especially in high-demand markets like Puerto Banús, central Marbella and Estepona’s New Golden Mile.
For long-let or holiday self-use with occasional rental, the resale’s lower acquisition cost and immediate availability typically makes it a better fit.
The ROI comparison: pulling it together
Here is a simplified 5-year comparison for two comparable apartments in the same Estepona area:
| Resale (2014 build) | New-Build (2024 build) | |
|---|---|---|
| Purchase price | €320,000 | €380,000 |
| Purchase taxes | €22,400 (7% ITP) | €42,560 (11.2%) |
| Total acquisition cost | €342,400 | €422,560 |
| Annual gross rental income (short-let, 20 wks) | €17,600 (~5.5% on price) | €20,000 (~5.3% on price) |
| Annual running cost saving (energy) | n/a | +€900 |
| Year 1 rental income available | €17,600 | €0 (off-plan, waiting) |
| 5-year gross rental income | €88,000 | €75,000 (4 full years) |
| Assumed 20% capital appreciation (5 yr) | +€64,000 | +€76,000 |
| 5-year total gain | ~€152,000 | ~€151,000 |
On these assumptions, the two options come out almost even over five years. The new-build’s higher capital appreciation roughly offsets the higher tax cost and the lost year of rental income.
Change any one variable significantly and the outcome shifts. A stronger market (30% appreciation) swings it toward new-build. A weaker market (10% appreciation) swings it firmly toward resale. A buyer who can’t absorb a year of no rental income should always lean toward resale.
Always verify current rates and your personal tax position with a qualified Spanish tax adviser before making any investment decision. Figures in this guide are illustrative and based on 2026 mid-market data.
Which type suits which buyer
New-build off-plan is right for you if:
– You are not in a rush and have a 18-36 month investment horizon before you need the property
– You have sufficient liquid capital to cover stage payments without borrowing
– You want modern energy ratings and the lowest possible running costs
– You are targeting the top end of the short-let market where finish matters
– You have verified the developer’s credentials and the bank guarantee is in place
Resale is right for you if:
– You want to move in or start earning rental income quickly
– You want to negotiate on price (easier with a motivated private seller)
– You want to inspect what you are buying before committing
– You are working with a tighter budget and the 4% tax saving matters
– You prefer a larger-feeling property with mature landscaping and an established community
Most British buyers we work with end up somewhere in between: they start looking at off-plan because the marketing is slick, then come around to a well-maintained resale once they see the full numbers.
Ready to find the right one?
Whether you’re comparing off-plan developments or shortlisting resales, the search process is the same: you need honest numbers, honest comparisons, and someone who is not financially incentivised to push you toward one option over the other.
If you’re working out which direction makes more sense for your budget and timeline, tell us what you’re looking for and we’ll pull together a shortlist of both types so you can compare them side by side. No obligation, no sales pressure.
You might also find our guide to buying property in Spain as a UK citizen useful as a starting point for the full process.
