Perini Finance & Property §34i GewO · Mortgages in Spain & Portugal
New-build Spain · Comparison

New-build or resale? What actually differs

The question is usually debated as a matter of taste — pristine versus established. Financially it is something else: two entirely different payment profiles.

Legal notice

Author & regulatory separation. Content author: Siegfried Perini. Mortgage brokerage in Spain and Portugal is carried out under the §34i GewO licence held by Olga Nikushkina (BAFA-notified). This information does not replace legal or tax advice.

Tax

IVA + AJD versus ITP

On a first transfer from a developer, Spanish VAT (IVA) and stamp duty (AJD) apply. On a resale purchase, transfer tax (ITP) applies instead, at a rate set by the autonomous community.

For the financing, one thing matters above all: these taxes are purchase costs and are not financed. They add to the equity requirement in both cases, merely composed differently. The tax treatment of an individual case belongs with a qualified tax adviser; we do not give tax advice.

Payment profile

The real difference

Resale: deposit on the preliminary contract, balance at the notary. The mortgage is created at the same moment as the transfer of ownership. The equity is due on one day — predictable, contained.

New-build: reservation, private contract, several milestone instalments across 18 to 36 months — all from your own funds. The mortgage only arises at the end. The equity requirement is stretched over years and higher in total before the bank engages at all.

For anyone with liquidity, that is no problem. For anyone whose capital is tied up in a German property, the construction phase must be engineered — before signing. How that works.

And the bank?

Sees both alike — at the end

On the day of the escritura the bank makes little distinction: it looks at the lower of price and tasación, and at your credit profile. Lending limits for non-residents are the same.

The difference lies entirely in the road there. Which is why new-build projects rarely fail at the bank — they fail in the construction phase.

FAQ

Frequently asked questions

Is new-build more expensive?
Not necessarily in price. But the equity required before bank financing is markedly higher, because the whole construction phase is self-funded.
Can purchase costs be financed?
As a rule, no. For non-residents, lending is measured against the value of the property; taxes and fees sit on top as equity.
Do I get a higher loan-to-value on a new-build?
No. The limits for non-residents do not depend on the type of purchase. New does not mean better secured.
What about parking spaces and storerooms?
Sold as separate legal units, they can be treated differently for tax. Clarify this before the contract — and only a tax adviser may advise you on it.
New-build & construction phase

More on the construction phase

New-build

Subrogación: take over the developer's mortgage, or redeem it?

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Zur Seite → New-build

Hipoteca de autopromotor: self-building in Spain

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Zur Seite → New-build

Timing: mortgage approval after 24 months of construction

Go to page.

Zur Seite → New-build

New-build on income outside the euro

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Zur Seite → New-build

Checklist: what must be checked before the first instalment

Go to page.

Zur Seite → New-build

Why Spanish banks do not finance the construction phase

Go to page.

Zur Seite →

New-build in Spain — let us work through the construction phase together

I check which part of the price has to come from your own funds, what a German bank can raise against existing property, and what the Spanish bank takes on at completion — free of charge, no upfront cost.