Buying new-build and off-plan property on the Costa Blanca

Buying off-plan means paying in stages while a home is built — protected by mandatory bank guarantees on every payment. New-build is taxed at 10% IVA + ~1.5% AJD (not the resale transfer tax), comes with warranties and energy efficiency, but you wait for completion. Here’s how it works and what to check.

By Noël Picou and the team at Team Picou · RE/MAX Inmomás II, Finestrat. We guide buyers through new-build developments in 6 languages.

How off-plan payments work

You don’t pay it all upfront. A typical schedule:

1. Reservation — a deposit takes the unit off the market.
2. Private purchase contract — usually around 10–20% on signing.
3. Stage payments during construction — further instalments tied to build milestones (commonly 20–40% of the price in total during the build).
4. Completion — the remaining balance at the notary when the home is finished and legal.

Your money is protected — verify it

This is the key safeguard: under Spanish law, the developer must guarantee every payment you make during construction with a bank guarantee (aval) or insurance policy, refundable if the project isn’t delivered. Never pay a stage without that guarantee in writing. Your lawyer (and we) confirm it before any transfer.

Taxes on new-build

• 10% IVA (VAT) on the price.
• ~1.5% AJD (stamp duty).
• Notary + registry + lawyer: ~1–2%.

Note: new-build uses IVA + AJD, not the 10% ITP that applies to resale homes.

Completion: the licence of first occupation

Before completion, the development needs its licencia de primera ocupación (LPO) — the certificate that the home is legal and habitable and that utilities can be connected. Tie completion to the LPO; your lawyer verifies it.

At handover

• Snagging: inspect and list defects; the developer fixes them.
• Warranties: new-builds carry warranties — typically 1 year (finishes), 3 years (installations) and 10 years (structural).
• Utilities & community: we handle the connections and the community of owners set-up.

New-build vs resale — quick steer

• Choose new-build for: modern design, low running costs, warranties, a spread payment plan, and the chance to pick finishes.
• Choose resale for: seeing exactly what you buy, mature gardens/areas, and moving in now.

We work both the new-build pipeline and the resale market, so we’ll show you the right option — and check every guarantee and licence along the way. Browse new-build · Browse all properties · About us.