Buying New Build Property on the Costa del Sol in 2025: The Complete Guide
By George Nayda
19 August 2025
10 min read
SMART BUYING
Buying New Build Property on the Costa del Sol in 2025: The Complete Guide
Thinking about buying a new build home on the Costa del Sol? In this 2025 step-by-step guide, we break down the full process in simple terms from reservation to keys in hand. Learn about real costs, mortgages, legal checks, and what to expect after completion, so you can buy with confidence and avoid costly mistakes.
Why Buy a New Build in 2025?
Buying a new build home in Spain is very different from buying resale. In 2025, the Costa del Sol market has many projects under construction and more in planning. Families, retirees, and investors all see the appeal of new developments.
Why people choose new builds:
Modern style: open kitchens, bright living rooms, big terraces, floor-to-ceiling windows.
Energy savings: better insulation, smart systems, and electricity-saving heat pumps for air conditioning.
Low maintenance: everythingg is new, covered by warranty.
Safe communities: gated complexes with pools, gyms, gardens, and kids’ areas.
Where are they?
Estepona & New Golden Mile: fastest growth, many projects from €300K+.
Marbella East (Cabopino, Elviria, La Mairena): villas and apartments from mid-range to €1.5M+.
Mijas Costa & Fuengirola: more affordable, strong rental demand.
Benahavís: luxury hillside projects, many €1M+.
For €300K to €1.5M buyers, there is a wide choice. The key is to know the process and prepare before signing anything.
Step One How the Process Works
Buying a new build in Spain follows a step-by-step legal system. It protects you if done correctly.
The 4 stages:
1. Reservation Contract
You transfer a small deposit (€6K to €10K) (never send money to a real estate agent).
The property is taken off the market
2. Private Purchase Contract (PPC)
Sign after your lawyer checks the documents.
You pay 20 to 30% of the property price in stages while construction moves forward, plus 10% IVA with every payment.
3. During Construction
Payments go into a secure bank account.
By law, the developer must give you a bank guarantee or insurance for every euro you pay.
4. Completion & Title Deed
Final payment (70 - 80%).
You sign at the notary, register the property, and receive your keys.
PRO Tip: When you finance your property, you start applying for a mortgage 4 to 3 months before the project completion. Please don't get any loans before your mortgage application (depending on your income and outgoings).
Key trust point: Since 2015, Spanish law forces developers to guarantee all advance payments. If the project fails, your money is safe.
Step Two The Real Costs
The property price is not the final cost. In 2025, you must plan 12 - 14% extra.
10% VAT (IVA): applied to all new homes.
1.2% Stamp Duty (AJD): rate in Andalucía.
Lawyer fees: 1% + IVA
Notary & registry: generally between €800 - €2,400.
Bank costs: around 1% if you need a mortgage.
💡 Example: An Off Plan / New Build €500K apartment real cost closer to €560K - €570K after extras.
Tip: Always keep a buffer of 5% more for safety.
Step Three Checks Before You Sign
Trust starts before you pay. Here’s what to review:
Developer reputation: choose companies with a strong track record.
Bank guarantees: make sure they are written in your contract.
Payment plan: Confirm the payment amounts and when they need to be paid
Completion date: Confirm timeline
Location: test drive to schools, shops, beaches, and at rush hour.
Many families skip the commute check. In reality, 40 minutes in traffic each way can change daily life more than a rooftop pool.
Step Four Financing in 2025
Non-residents can still get mortgages in Spain.
Loan to Value: usually 60 - 70% for non-residents
Rates: around 3 - 4% in 2025
Approval time: 4 - 6 weeks.
Pro Tip:
If you get a 60% mortgage in Spain, you’ll need to pay around 40% of the property price yourself, plus about 14% extra for buying costs (lawyer, stamp duty, notary, land registry, and mortgage setup). For a €500,000 home, this means you should plan on having roughly €270,000 in savings available.
Step Five Handover & Aftercare
When construction is finished, you enter the last stage:
Snagging list: you check for faults (paint, windows, fittings). The developer must fix them.
10-year structural warranty: required by law.
1 to 3-year minor defects guarantee: covers smaller problems.
Community handover: once owners move in, they vote on rules, services, and budgets.
Bring a professional inspector if you can. It may cost €400 - €600, but it saves endless stress later.
Your Working Plan for 2025
Here’s a simple path:
Set your budget, including 13 to 14% costs for a New Build property.
Choose the area first, then the project. Location is everything.
Hire a lawyer early. Independent, English-speaking or your native language, not tied to the developer.
Reserve only once you’re sure. Deposits are non-refundable.
Check timelines honestly. Add 3 to 6 months to whatever the brochure says.
Plan your financing. Make sure you have sufficient money for the payments during construction.
Inspect before final payment. Protect yourself with a snagging check.
Conclusion: Build Trust, Then Build Your Home
Buying a new build in Spain in 2025 can feel complex. But when you break it into steps, it becomes safe and clear:
The law protects your payments.
The real buying cost is 12 to 14% more than the base price.
The biggest mistakes come from rushing or skipping checks.
With the right process, you move in stress-free to a modern home, in the right area, with the right guarantees.
Over 1,597 families have trusted me to help them buy on the Costa del Sol. If you want clarity and confidence before you commit, let’s talk.
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