New build vs second-hand: pros and risks

For the same budget, new build and second-hand offer very different homes. There's no superior option: there's the right option for your case.

Taxes

• New build: VAT 10% + AJD 0.5-1.5%. Total ~11%.
• Second-hand: ITP 6-10% depending on region.

In Madrid, second-hand wins clearly (6% vs 11%). In Catalonia with ITP 10% and new build 11%, it's almost tied.

Timelines

• Second-hand: 45-75 days from offer to keys.
• New build off-plan: 12-36 months.
• New build turn-key: 30-60 days.

Buying off-plan in 2026 means handing over keys in 2027-2028. Consider whether you can wait (continuing to rent adds cost) and whether you can absorb the typical 3-6 month delay.

Warranties

In new builds you have by law:

• 1 year for finishing defects.
• 3 years for habitability defects (damp, insulation).
• 10 years for structural defects.

In second-hand there are only 6 months for hidden defects (Civil Code art. 1490) and proving them is very hard.

Negotiation power

• Second-hand: a lot. Discounts of 5-12% are common on flats with >3 months on Idealista.
• New build: minimal. Developers have fixed price lists. You can only negotiate on remaining stock or on extras (kitchen, bathrooms).

Risks

• Second-hand: liens, pending special levies, real condition of installations, poor energy certificate.
• New build: delays, developer bankruptcy (mitigated by the bank guarantee mandatory since 1968), final finishes different from the sample.

Typical cases

• Young couple, 35, average income, 80% mortgage → second-hand in established area. Better tax rate + room to negotiate.
• Family with two children that can wait 2 years → new build in periphery. Better energy efficiency, warranties, parking included.
• Investor for renting → renovated second-hand. Lower taxes, immediate rental liquidity.

Our recommendation: don't fall in love with the category, fall in love with the specific flat after comparing real numbers.