When the time comes to purchase a property, one of the most important factors to take into account—in addition to price, the location or condition of the property—are the tax benefits associates. In Spain, buy one new home entails different tax implications than those of a used housing, which can have a significant impact on your budget and long-term planning.
In this article we explain in detail what the tax advantages of buying a new home versus a used one, especially if you are looking to invest in areas such as Alicante and Murcia, where the real estate market is in constant movement.
What is considered new housing and used housing?
Before getting into the matter, It is worth clarifying what distinguishes a new home from a used one.:
- New home: properties that are purchased directly from the developer and that have not been previously inhabited. They are also considered new if they have been leased for a period of less than two years..
- Used or second-hand housing: properties that have had at least one previous owner or have been continuously inhabited.
This difference directly affects the taxes you will pay at the time of purchase..
Taxes on purchase: IVA vs ITP
One of the main tax factors differentiating between new and used housing is the type of applicable tax.:
- New home: is subject to IVA (Value Added Tax). In most cases, this is from 10% of the purchase price. In the case of protected housing or special regime, can be from 4%.
- Used housing: is paid ITP (Property Transfer Tax), which varies according to the autonomous community. In the Valencian Community and Murcia, is located between the 8% and the 10%, although there may be reductions depending on age, disability, number of children or if it is a first home.
👉 If you are considering a property of new construction, It is essential to calculate this 10% of VAT in your total budget.
Deductions and bonuses for purchasing a new home
Buying a new home can give rise to various tax advantages:
1. Reduction in VAT for large families or those with disabilities
In certain cases, VAT drops from 10% al 4% If the buyer meets specific conditions such as:
- large family.
- Person with a disability equal to or greater than 33%.
- Older than 65 years in cases of adapted housing.
2. Savings on notary and registration expenses
Being a first transmission, Notary and registration expenses may be slightly lower, in addition to having greater legal certainty in the documentation.
3. Possibility of deduction for investment in habitual residence (limited cases)
Those who purchased their home before 2013 and reinvest in a new one, could benefit from a deduction for reinvestment in habitual residence. Although limited, still active in some cases.
Indirect advantages: energy efficiency and less maintenance
Although they are not strictly fiscal, Other economic advantages when buying a new home are:
- Better energy efficiency ratings, what it means savings on supplies.
- Homes adapted to the latest insulation regulations, ventilation and consumption.
- Lower maintenance or renovation expenses during the first years.
- Greater ease of contracting insurance at a competitive price.
All these factors impact positively in your annual budget and the profitability of your investment if you decide to sell later.
Cases where it is more convenient to buy new construction
The purchase of a new home is especially recommended in the following scenarios:
- If you are purchasing your first home as a resident in Spain, since you can opt for deductions and reduced rates.
- If you are looking for a home with low energy consumption and construction guarantees.
- If you are a large family or have some recognized degree of disability.
- If you plan to rent the home and want to take advantage of tax depreciation as an investment.
In these cases, Acquiring a new property not only offers you tax benefits, but also greater profitability in the medium and long term.
Recommendations for foreign buyers
Many of our international clients, especially from northern Europe, They are not familiar with the tax differences between new and used housing in Spain. That's why, from Mayrasa We offer a complete service real estate consultancy to explain clearly:
- What taxes apply depending on your residence situation.
- How to declare your investment in your home country.
- What deductible expenses can you take advantage of if the purchase is for rent?.
- How to simplify procedures with our service after -sales.
If you are thinking of investing from abroad, We help you in your language and with the legal support you need to invest with complete peace of mind..
What if you are between both options??
If you have doubts between a new home or second hand, The ideal is to analyze the total costs associated with each option: taxes, reform, energy efficiency, additional expenses… and not just the purchase price.
Besides, We have a wide portfolio of new and second-hand homes ready to move into.: attics, chalets, apartments y bungalows in the most demanded areas of Alicante and Murcia.
Conclusion
Buy one new home in front of one usada implies important tax differences that should not be overlooked. VAT, bonuses and indirect benefits make, in many cases, purchasing new construction is a more attractive option, especially if you are looking for efficiency, long-term guarantee and stability.
Do you want to know which option best suits your case?? Our team of advisors is prepared to offer you the best solution. Contact us here and take the first step towards your next property on the Costa Blanca.
