New-Build Investment on the Costa Blanca

Why new build, for investors

• ✦10-year structural guarantee (Ley de Ordenación de la Edificación, LOE) on the building envelope.
• ✦3-year guarantee on finishes (kitchen, bathrooms, electrical) and 1-year on cosmetic snagging.
• ✦Energy ratings of A or B as standard — lower running costs, easier to let, better resale.
• ✦Modern open-plan layouts and large terraces — what current rental and end-buyer markets want.
• ✦Lower maintenance and surprise-repair risk in the first decade.
• ✦Strong rental appeal — long-let tenants increasingly demand modern energy efficiency; holiday guests filter Airbnb listings by 'air-con' and 'pool'.

Where the new-build belts are

Buying timeline — key-ready vs off-plan

Developer due diligence — non-negotiable

• ✦Check developer's previous 3 completed projects on the Land Registry — were they delivered on time, to spec?
• ✦Verify the building licence (licencia de obras) is in place and current at the town hall.
• ✦Confirm urbanistic classification of the plot (urbano, not urbanizable or rústico).
• ✦Verify the bank guarantee policy covers your stage payments.
• ✦Confirm community statutes — does the developer have post-completion influence over the community?
• ✦Read the 'memoria de calidades' (specification of materials and finishes) word by word — anything not in writing won't be delivered.
• ✦Check the location of communal facilities (pool, gym) versus your unit; new-build sales offices often understate noise from a pool deck below.

The tax structure

New builds are subject to IVA (Spanish VAT) at 10% plus AJD (stamp duty) at 1.5% in the Valencian Community — total 11.5%. Resale property pays ITP (transfer tax) at 10% with no AJD — total 10%. So new builds carry a 1.5% tax premium versus resale.

On the upside, you can claim the IVA back if you invest via a Spanish SL company and the property is held as a business asset — sometimes worth the SL setup cost on its own for high-value purchases.

Snagging and the 12-month window

On handover, you have a one-year period to log cosmetic defects (paint, doors, tile alignment, kitchen drawer closers) that the developer must fix at no cost. Most experienced investors hire an independent snagging surveyor (€250–€450) to inspect within the first month — paying for itself in remedial works the developer would otherwise dismiss.

Structural defects (water ingress, settlement cracks) fall under the 10-year guarantee. Issues with the energy certificate, fire safety or accessibility are reportable to the regional housing inspector.