Have you decided to buy a property in Andalusia or another region of Spain? Great, this unique country will definitely not disappoint you. But first you must answer a basic question: should it be a house in which no one has lived before you or do you prefer to buy a premises previously used by other owners? Both solutions have their advantages and disadvantages. So, let’s analyze where it is better to look for real estate: in the primary or secondary market.
Primary market
The main benefit of purchasing such a property is obtaining long-term guarantees from both the developer and the general contractor. In addition, it is tempting due to its modern design and high standard. In Spain it is common practice to offer clients not only finished houses and apartments, but also fully furnished ones, which is a great convenience for foreigners who have not yet had time to get to know the local area. It often happens that a developer equips a property with expensive equipment, the cost of which is usually much lower for him than for an individual client due to wholesale purchasing. Aesthetics also play an important role. The differences between old and new buildings are visible to the naked eye. So if we want a modern design, a property in the primary market is the target. The developer will also ensure that the choice of interior design suits the tastes and preferences of the buyer. The architects and decorators he employs agree with the buyer what he expects from each room in terms of functionality and appearance and what budget he can allocate to it. Speaking of budget, the advantage of buying a new construction home, which not everyone realizes, is… the savings. Although at first glance it may seem absurd, as a buyer we can save, especially on property maintenance costs, which in the primary market are much lower. The new developments are built with more modern materials and are equipped with higher quality windows, insulation and installations. As new quality standards have been in force in Spain for several years, houses and apartments are built with energy-saving technology.
Aftermarket
One of the main advantages of purchasing real estate on the secondary market is location. Many attractive locations are inaccessible to new investments. Suffice it to mention the Costa del Sol, whose coastline has been urbanized in such a way that it makes it difficult for developers to create new houses or developments. Therefore, if we have very specific needs in this regard, it is worth looking for an apartment previously used by another owner. It should be added that the Spanish market is exceptionally dynamic: residents often move and exchange properties for larger or cheaper ones. Therefore, the rotation of offers is enormous. Another advantage of real estate on the secondary market is the developed infrastructure. This is not surprising: residents of older housing estates often have at their disposal numerous shops, restaurants, pharmacies and schools that have been built in the area over the years. An important convenience is also the faster transaction completion time. We can move into the purchased house immediately after signing the contract.
Cost differences
As we know, additional costs must be added to the price of real estate: we have to pay a lawyer and a notary, in addition to paying taxes. The difference appears precisely in the context of tax issues. The ITP (the property transfer tax), that is, the tax on the transfer of ownership of premises acquired on the secondary market, was progressive until recently. However, in spring 2020 it was standardized and reduced to 7%. home value. The authorities decided to encourage potential investors to acquire properties on the Costa del Sol and other areas of Andalusia.
If we decide to buy an apartment from a developer, we must bear in mind that we will have to pay VAT, which is 10%. real estate values. In addition, we have to pay taxes on civil law transactions, the so-called AJD (tax on Documented Legal Acts) in the amount of 1.5 percent. real estate values.
