Property News & Expat Guide for Spain

Deciding which type of property to buy in Spain is one of the first steps you should take in your search process. Choosing between a new build and a second-hand property is a common confusion among buyers. Is it better to buy a new build property or a second-hand one? In reality, there is no definitive answer. Both options have their advantages and disadvantages, so the decision will depend solely on your needs and desires.

According to data from the INE (Spanish National Statistics Institute), in Spain in 2024, 134,338 new build properties and 506,063 second-hand properties were purchased. This means that, of the total properties bought in the last year in Spain, almost 80 % were second-hand and 20% were new build properties. There are a variety of factors that can influence this decision. That’s why, in this article, we want to give you the information you need to help you to make the right decision for you.

What is considered to be a new build and what are second-hand properties?

In general terms:

• Second-hand properties: those that have had at least one previous owner.
• New build properties: those that are handed over for the first time and, therefore, have not had a previous owner.

However, the legal and tax classification of a property as “new” can vary depending on specific circumstances. A property is generally considered a new-build when:

• It is a recently built property bought directly from the construction company or developer.
• It is an off plan property, in other words, a property that hasn't been built yet.
• It has been rented out by the developer for less than two years after completion, provided the tenant is the buyer. In this case, Spain’s Tax Agency (Agencia Tributaria) treats it as a first delivery for tax purposes. If the property has been used for two years or more by someone other than the buyer, it will no longer be treated as a first delivery.
• It has undergone major structural renovations, for example, the addition of a new floor. In such cases, a declaration of new construction due to rehabilitation may be formalised in order to register the changes in the Land Registry. However, this does not necessarily affect its tax treatment.

Buying a new build or second-hand property in Spain: Differences, advantages and disadvantages

When talking about the advantages and disadvantages of buying a new build or second-hand property, it is important to bear in mind that each buyer has different needs. What may be considered a benefit by one buyer, may be seen as a drawback by another. For that reason, we want to present you with different factors that may be decisive when it comes to choosing one property over another.

Location of the property

If you want to live in a city centre or a specific neighbourhood, the best option for you is likely to be buying a second-hand property, since you will find more available in these areas. This is because in Spain new build properties are usually located on the outskirts of cities, where there is more land available for building. However, if you would prefer to live in a residential area, away from the hustle and bustle and noise of the city, you will find many more options for buying a new build property.

Waiting time before moving in

Do you need to move house immediately or are you happy to wait a while? The time you have available or can wait to move into your new property will also be crucial in making your decision. In general, second-hand properties are ready to move into. However, in the case of new build properties, it is likely that they are still under construction or they may even only exist in plan form. This means you will have to wait for a few months, or even years, for the property to be ready. Therefore, if you are in a rush to move into your new property, second-hand properties will be the best option for you.

Design and potential renovations

For some people, a renovation is the ideal opportunity to design your home to suit your own taste. If you are one of these people and you enjoy the process, second-hand properties will be perfect for you. However, if you prefer to avoid any renovations, the best option for you would be to buy a new build property. These properties are brand new, with new materials and are more modern, and with no defects caused by use. However, if you buy a second-hand property, there is an increased likelihood of having to carry out some type of renovations, no matter how small they may be.

Read more at thinkSPAIN.com

Paying off your mortgage is a major financial milestone, marking the end of your loan commitments and the start of full homeownership. However, in Spain, paying off a mortgage is not just about making the final payment. There are several important legal and administrative steps to complete before your property is entirely free from financial obligations.

This guide outlines the essential steps you need to take after your mortgage in Spain has been paid off, ensuring a smooth and straightforward process. Whether you've completed your mortgage term or repaid it early, these steps will help you secure your home, navigate legal requirements, and understand any tax implications.

1. Confirm the mortgage is paid off

Your first priority is to confirm that your mortgage is fully repaid. While it might seem obvious, it's essential to obtain official documentation from your lender to avoid misunderstandings or issues down the line. Financial institutions can sometimes make errors in processing, especially with early repayments, and you want to ensure that your records are accurate and up to date.

How to apply for a zero-debt certificate

After making the final payment, request a certificado de deuda cero (zero-debt certificate) from your bank. This document serves as official proof that the mortgage has been fully repaid and no outstanding balance remains. It is a crucial document for cancelling the mortgage in the Land Registry (“Registro de la Propiedad”) and for ensuring there are no lingering financial obligations connected to your property. Ensure that the certificate includes all necessary details, including the loan amount, dates, and confirmation that no penalties or interests are due.

What to do if you've repaid early

If you’ve paid off the mortgage early, it’s important to check your original mortgage contract for any early repayment conditions. Some Spanish banks charge penalties for early repayment, typically a percentage of the outstanding balance. Even though you've repaid early, you must still obtain the zero-debt certificate to formalise the completion of the mortgage. This process helps avoid potential issues that could arise from discrepancies between your expectations and the lender’s records.

2. Cancel the mortgage at the Land Registry

Even after you’ve repaid your mortgage, the mortgage still remains registered against your property at the Land Registry. This step is critical because failure to officially cancel the mortgage can lead to legal complications when selling or transferring the property in the future. The mortgage, although repaid, is still legally considered as an encumbrance until it is removed from the registry.

Steps to cancel the mortgage...