New build or resale on Costa Blanca: taxes, timing and guarantees
VAT and AJD on new build, TPO on resale, plus key differences in delivery, advance payments and guarantees for foreign buyers.
Adel PropertiesBased on Adel Properties
In the Valencian Community, the main tax difference is the type of transaction. A new home bought from the developer on its first delivery generally carries 10% VAT plus AJD. As of 02/11/2026, the general AJD rate in force is 1.4%; deeds for a habitual residence can qualify for 0.1% if the conditions are met. Resale property generally carries 9% TPO, rising to 11% when the property value exceeds €1 million.
For off-plan or under-construction homes, Valencian rules require information on expected completion and delivery. Advance payments must be protected by insurance or a bank guarantee, and the contract must provide for repayment if construction does not start or finish by the agreed date or the document allowing occupation is not obtained.
Spanish building law sets liability periods of one year for finishing defects, three years for habitability defects and ten years for structural defects, counted from reception of the works. A resale home can still benefit from any remaining period; separately, Civil Code actions for hidden defects expire six months after delivery.
Anyone comparing a new build Costa Blanca option can also browse our new-build catalogue. General information as of 02/11/2026; rules may change, so it is advisable to consult an adviser.
Source: Adel Properties. Text prepared by Adel Properties from the information published by the original outlet.
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