New build or resale on the Costa del Sol: what suits your goal?

It is the first choice almost every buyer makes. And often the choice that is thought about the least.

New build or existing property. Both can be an excellent investment. But they work differently, cost differently, and suit different goals.

In this article, we compare the differences. So that you choose based on the figures, not just a nice viewing.

Start with your goal, not the property

In every initial meeting, we ask the same question: what do you want this property to do for you?

• Enjoy it yourself and live there for a few months a year
• Rent it out and build up a steady income
• Grow your capital in the long term
• Or a combination of all three

The answer determines more than just the region or the budget. It determines which type of property suits you.

New build: get in early, get the keys later

With new builds, you usually buy off-plan, often one to three years before completion. You pay in instalments and the remainder at the notary.

That has clear advantages:

• Staged payments. You don't have to pay the full amount upfront.
• Entry price. Buying at launch often means a lower price than buying upon completion. While not a guarantee, it is a pattern we frequently see in strong regions.
• Modern and energy-efficient. New builds typically have an A energy rating, modern installations, and facilities such as a swimming pool, gym, and parking garage.
• Legal warranties. The developer provides a one-year warranty on finishes, three years on installations and habitability, and ten years on the structure.

There is a trade-off, however. During construction, you have no rental income. You are dependent on the schedule and the quality of the developer. And the tax is higher: you pay 10% VAT (IVA) plus 1.2% stamp duty (AJD) in Andalusia.

Resale properties: get the keys, get an immediate return

With a resale property, you see exactly what you are buying. No drawings, no renders. The property is already there.

• Immediately available. You get the keys after the notary appointment and can start renting it out.
• Established location. Many of the best spots, such as the old town of Estepona, are already fully developed. You can only buy existing properties there.
• Room for negotiation. There is often more flexibility in the price when dealing with a private seller.

The downside: older installations, potential deferred maintenance, and a less favourable energy rating. You also need to take a closer look at the homeowners' association, as costs can be hidden there. For resale properties in Andalusia, you pay 7% transfer tax (ITP).

Comparing the costs

On top of the purchase price, both routes involve costs for the notary, land registry, lawyer, and potentially a mortgage. Roughly speaking:

• New build: approximately 12 to 13% in additional costs
• Existing property: approximately 9 to 10% in additional costs

Would you like to know the exact figures for your situation? Use our buyer's cost calculator.

A third route: renovated and ready to move in

There is a category that is often overlooked: an existing property that has been completely renovated. You get the location of a resale property with the finish of a new build, and you can live in it or rent it out immediately.

That is precisely why Cooiman Capital renovates townhouses in the old town of Estepona itself.

Our conclusion

There is no single best choice. There is only the choice that fits your goal, your timeline, and your budget.

Are you looking for a quick return and certainty about what you are buying? Then resale or renovated property is the obvious choice. Do you have time and want to get in early on a growing region? Then a new build is often the stronger move.

Unsure which route is right for you? Schedule a consultation with our team. We will run the numbers for both scenarios for you.