Does the type of property I want to buy (new build or resale) impact how much I can borrow in Spain?

Whether a property is a new build or resale will not affect how much you can borrow, but taxes and fees will differ

While the nature of new build properties is self-explanatory, most homes for sale in Spain are termed 'resale' if they are not being bought from a developer. Such properties have been previously owned and occupied. A resale property could be a modern house that has had only one or two owners or an old residential building that is hundreds of years old.

Whether a property is a new build or resale will not affect how much you can borrow. Taxes and fees will differ for new build and resale properties in Spain. On a new build, you will pay VAT and stamp duty. On a resale property, you will be subject to transfer tax. Costs and taxes on resale properties tend to be slightly lower. How much tax you pay can also depend on the municipality in which the property is located. To illustrate this, a property in Andalucia valued at €250,000 will have a tax rate of 8% if resale, while if it was a new build purchased from a developer, it would be 10%.