Off-Plan vs Resale Property
in Marbella.
Which Investment Is Better?
2025 ROI Analysis
for the Costa del Sol properties
for the Costa del Sol properties
The Investment Question Every Costa del Sol Buyer Should Ask
Is it better to buy off-plan or ready? 👇
Is it better to buy off-plan or ready? 👇
💬 Last week, a client asked me a question that many international buyers struggle with when considering property investment on the Costa del Sol.
He'd been seeing advertisements for new developments near Estepona and is seriously considering buying an apartment on the Costa del Sol as an investment property.
His budget: up to €700K.
He'd visited the area several times for holidays and loved it, but when it came to making the investment decision, he was stuck.
His question: "What gives better ROI—buying off-plan property or purchasing a resale apartment on the Costa del Sol?"
Here's the thing: there are only a few new developments on the Costa del Sol that I would personally invest in.
So my answer was clear from the start.
But instead of relying solely on experience, I decided to prove it with real data.
I took two comparable examples: an average off-plan apartment in the New Golden Mile area and an average resale apartment in the same zone.
I calculated everything—purchase costs, taxes, rental income, and appreciation—projected over five years.
The results might surprise you.
Here's my complete Costa del Sol property investment analysis for 2025 ⏬
He'd been seeing advertisements for new developments near Estepona and is seriously considering buying an apartment on the Costa del Sol as an investment property.
His budget: up to €700K.
He'd visited the area several times for holidays and loved it, but when it came to making the investment decision, he was stuck.
His question: "What gives better ROI—buying off-plan property or purchasing a resale apartment on the Costa del Sol?"
Here's the thing: there are only a few new developments on the Costa del Sol that I would personally invest in.
So my answer was clear from the start.
But instead of relying solely on experience, I decided to prove it with real data.
I took two comparable examples: an average off-plan apartment in the New Golden Mile area and an average resale apartment in the same zone.
I calculated everything—purchase costs, taxes, rental income, and appreciation—projected over five years.
The results might surprise you.
Here's my complete Costa del Sol property investment analysis for 2025 ⏬
🏠 The example:
A Fair Comparison
Property Specifications (Both)
A Fair Comparison
Property Specifications (Both)
Type:
2-bedroom, 2-bathroom apartment
Size:
100-115 m² built + 20-25 m² terrace
Floor:
Middle floor
Complex:
Gated community with pools, gardens, parking
Location:
New Golden Mile area, Estepona East
Distance to beach:
Within 1-2 km
2-bedroom, 2-bathroom apartment
Size:
100-115 m² built + 20-25 m² terrace
Floor:
Middle floor
Complex:
Gated community with pools, gardens, parking
Location:
New Golden Mile area, Estepona East
Distance to beach:
Within 1-2 km
The New Construction
Purchase Price: €640,000
Purchase Price: €640,000
- Price range in development: €625,000 - €1,500,000
- Price per m²: €6,000 - €6,500/m² (used in our example)
- Energy rating: A or A+
- Construction period: 24 months
- Completion: 2027
- Features: Smart home, underfloor heating, premium appliances, modern architecture
The Resale Property
Purchase Price: €480,000
Purchase Price: €480,000
- Price range in market: €420,000 - €850,000
- Price per m²: €4,000 - €4,600/m² (used in our example)
- Energy rating: C-D (built 2005-2015)
- Available: Immediately
- Condition: Well-maintained
- Features: Established community, mature landscaping, proven rental history
Price Gap: New builds cost 33% more (€160,000 difference).
Part 1: The Real Cost of Entry In Spain
⚠️Listed prices are NET—all taxes and costs come on top.
These costs vary dramatically between new builds and resale properties ⤵️
⚠️Listed prices are NET—all taxes and costs come on top.
These costs vary dramatically between new builds and resale properties ⤵️
New Build Acquisition Costs
Cost Item | Amount |
Property Price | €640,000 |
VAT (IVA) - 10% | €64,000 |
Stamp Duty (AJD) - 1.2% | €7,680 |
Lawyer Fees - 1% | €6,400 |
Other Costs - 0.5% | €3,200 |
TOTAL COSTS | €81,280 (12.7%) |
WHAT YOU ACTUALLY PAY | €721,280 |
Resale Acquisition Costs (Standard Rate)
Cost Item | Amount |
Property Price | €480,000 |
Transfer Tax (ITP) - 7% | €33,600 |
Lawyer Fees - 1% | €4,800 |
Other Costs - 0.5% | €2,400 |
TOTAL COSTS | €40,800 (8.5%) |
WHAT YOU ACTUALLY PAY | €520,800 |
*The Special Investment Tax Rate (2% ITP)
Important: If you're buying resale as an investment and plan to resell within 5 years, you qualify for just 2% transfer tax instead of 7%. Applied only for corporations.
This saves you €24,000 upfront.
Key Finding #1: The resale property requires €200,480 less capital.
Part 2: Rental Income Reality
New Build Rental
Resale Rental
New Build Rental
- Monthly rent: €2,200
- Annual gross rent: €26,400
- But: Construction takes 2 years (2025-2027)
- Rental starts: Year 3 (2027)
- Rental period: 3 years only
- Total 5-year income: €79,200
Resale Rental
- Monthly rent: €1,600
- Annual gross rent: €19,200
- Rental starts: Day 1
- Rental period: Full 5 years
- Total 5-year income: €96,000
Key Finding #2: Despite 37% lower monthly rent, resale generates €16,800 MORE total income over 5 years due to immediate cash flow.
Part 3: Property Appreciation Market Context (2025-2030)
New Build Appreciation
Resale Appreciation
- Strong growth expected: 3-7% annually
- Marbella, Estepona & Sotogrande leading: 5-8% per year
New Build Appreciation
- 5-year growth: +25% (~5% annually)
- Purchase price: €640,000
- Sale price 2030: €800,000
- Capital gain: €160,000
Resale Appreciation
- 5-year growth: +20% (~4% annually)
- Purchase price: €480,000
- Sale price 2030: €576,000
- Capital gain: €96,000
Key Finding #3: New builds appreciate faster (+€64,000 more capital gain over 5 years).
But what decreases property investment value the most?
The 2-year construction period costs you €38,400 in lost rent, higher acquisition costs eat another €40,680, and exit fees take €27,720 more.
These factors significantly erode the appreciation advantage.
But what decreases property investment value the most?
The 2-year construction period costs you €38,400 in lost rent, higher acquisition costs eat another €40,680, and exit fees take €27,720 more.
These factors significantly erode the appreciation advantage.
Part 4: Exit Costs (Selling in 2030) and The Final ROI Comparison
Request your FREE copy of Exit Costs calculation and The Final ROI Comparison by contacting me via whats app 👇
Request your FREE copy of Exit Costs calculation and The Final ROI Comparison by contacting me via whats app 👇
Why Resale Wins
for 5-Year Investments
for 5-Year Investments
1. Immediate Cash Flow
Two years of rental income (€38,400) while new build sits under construction creates massive advantage.
2. Lower Entry Cost
€200,480 less capital required means better return on invested money.
3. Lower Exit Costs
Agency commission on €576k vs €800k saves €11,200.
Lower capital gains tax saves €12,160.
4. Lower Risk
17.8% ROI vs 9.9% ROI—that's 80% better performance.
Two years of rental income (€38,400) while new build sits under construction creates massive advantage.
2. Lower Entry Cost
€200,480 less capital required means better return on invested money.
3. Lower Exit Costs
Agency commission on €576k vs €800k saves €11,200.
Lower capital gains tax saves €12,160.
4. Lower Risk
- No construction delays
- No developer bankruptcy risk
- Proven rental demand
- Easier to sell if needed
17.8% ROI vs 9.9% ROI—that's 80% better performance.
When New Builds Make Sense
- Plan to Live There YourselfModern amenities, warranty coverage, low maintenance make sense for personal use.
- Have 10-15 Year Investment HorizonLong-term appreciation (4-7% annually after year 3) eventually overtakes resale performance.
- Can Absorb 2 Years Without IncomeHave reserves to cover the construction period with zero returns.
- Want Zero MaintenanceFirst 5-10 years typically maintenance-free with warranty coverage.
- Target Premium Rental Market35-40% higher rents attract quality tenants and luxury travelers.
- Deliver Energy Efficiency PremiumA-ratings will command 15-25% premium per m² long-term.
⚠️ Important Warning
About New Developments
About New Developments
👉 Not every new home in Spain means high quality.
I've seen many poorly-built new properties on Costa del Sol.
When buying off-plan home in Marbella, you take significant risk—you don't know what it comes out at the end.
Construction quality, finishing standards, and community setup can vary dramatically between developers.
Due diligence is critical:
I've seen many poorly-built new properties on Costa del Sol.
When buying off-plan home in Marbella, you take significant risk—you don't know what it comes out at the end.
Construction quality, finishing standards, and community setup can vary dramatically between developers.
Due diligence is critical:
- Research developer's track record
- Visit their completed projects
- Check reviews from previous buyers
- Verify all warranties and guarantees
- Use experienced lawyers
When Resale Makes Sense
- Have 5-7 Year Investment TimelinePerfect for this strategy as our analysis shows.
- Are Risk-AverseNo construction or developer risk, established track record.
- Need Immediate Cash FlowRental income from Day 1 provides flexibility and liquidity.
- Prefer Proven CommunitiesEstablished infrastructure and known rental demand.
- Want Lower Entry Cost€200,480 less capital required.
- Want Easier Exit StrategyFaster to sell in mature areas with larger buyer pool.
📌 Common Costa del Sol Property Investment Mistakes to Avoid
Mistake #1: Comparing Only List Prices
Don't forget acquisition costs add 12.7% for new builds vs 8.5% for resale.
Mistake #2: Ignoring Construction Period
Two years of zero income is a massive opportunity cost—€38,400 in lost rent.
Mistake #3: Overestimating New Build Appreciation
25% over 5 years is realistic, not the 30-40% some developers claim.
Mistake #4: Underestimating Capital Gains Tax and Exit Costs on Costa del Sol Property
When you sell off-plan property on Costa del Sol, exit costs average €51,600 compared to €36,400 for resale properties. That €15,200 difference equals losing an entire year of rental income.
You spend five years building equity in your Spanish investment property, only to forfeit 12 months of profit to capital gains tax and selling costs.
Understanding these hidden exit costs is essential for calculating true ROI on Costa del Sol real estate.
Mistake #5: Buying Off-Plan Property on Costa del Sol Without a 10-Year Investment Plan
Off-plan properties on Costa del Sol require at least 10 years to maximize investment returns.
High upfront costs, construction delays, and significant capital gains tax mean short-term investors rarely profit from new developments.
If your investment timeline is 5-7 years, resale properties on Costa del Sol deliver better ROI with immediate rental income, proven appreciation rates, and lower selling costs.
👉 Key takeaway: Off-plan = long-term hold. Resale = flexible timeline.
Don't forget acquisition costs add 12.7% for new builds vs 8.5% for resale.
Mistake #2: Ignoring Construction Period
Two years of zero income is a massive opportunity cost—€38,400 in lost rent.
Mistake #3: Overestimating New Build Appreciation
25% over 5 years is realistic, not the 30-40% some developers claim.
Mistake #4: Underestimating Capital Gains Tax and Exit Costs on Costa del Sol Property
When you sell off-plan property on Costa del Sol, exit costs average €51,600 compared to €36,400 for resale properties. That €15,200 difference equals losing an entire year of rental income.
You spend five years building equity in your Spanish investment property, only to forfeit 12 months of profit to capital gains tax and selling costs.
Understanding these hidden exit costs is essential for calculating true ROI on Costa del Sol real estate.
Mistake #5: Buying Off-Plan Property on Costa del Sol Without a 10-Year Investment Plan
Off-plan properties on Costa del Sol require at least 10 years to maximize investment returns.
High upfront costs, construction delays, and significant capital gains tax mean short-term investors rarely profit from new developments.
If your investment timeline is 5-7 years, resale properties on Costa del Sol deliver better ROI with immediate rental income, proven appreciation rates, and lower selling costs.
👉 Key takeaway: Off-plan = long-term hold. Resale = flexible timeline.
💡 Tax Considerations
Annual Obligations While Owning
- IBI (Property Tax): 0.4-1.1% of cadastral value
- Rental Income Tax: 19-24% on net profit (non-residents)
- Wealth Tax: On worldwide assets >€700,000 (Andalucia grants a 100% exemption)
- Solidarity Tax on Large Fortunes: On net assets > €3 million
- Mortgage interest
- Community fees
- IBI, insurance, utilities
- Property management fees
- Repairs and maintenance
- Capital Gains Tax: 19% (EU/EEA) or 24% (others) on net profit
- Plusvalía Municipal: ~1.5% of sale price
- 3% Withholding: Held by buyer, credited against CGT
My Personal Recommendation
After analyzing these numbers,
here's my honest advice ⬇️
here's my honest advice ⬇️
- For 5-Year Investment: Choose ResaleThe math is clear:
- 80% better ROI (17.8% vs 9.9%)
- €21,000 more profit (€92,520 vs €71,520)
- €200,480 less capital required
- Immediate cash flow from Day 1
- Lower risk profile
- Easier exit strategy
- For 10+ Year Investment: Consider New BuildIf you have long horizon:
- Higher long-term appreciation (4-7% annually)
- Rental premium compounds over time
- Energy efficiency gap widens
- Still under warranty for first decade
- For Personal Use:Choose Resale if you're like me:
- Appreciate established communities
- You love mature gardens and old trees
- You don't mind investing in rebuilding
- You want more space for your money
- You enjoy putting your personal touch on the property
- Modern amenities and smart technology
- Low maintenance and warranty coverage
- Latest energy efficiency standards from day one
- Contemporary design and finishes
"New homes on the Costa del Sol command premium prices—and for personal use or luxury second homes, that premium can make sense.
But resale properties offer lifestyle advantages that new developments simply can't replicate: established neighbourhoods, mature landscaping, character, and immediate community integration.
As a Costa del Sol property advisor, I personally prefer resale properties for their authenticity, proven track record, and better value for lifestyle-focused buyers.
But resale properties offer lifestyle advantages that new developments simply can't replicate: established neighbourhoods, mature landscaping, character, and immediate community integration.
As a Costa del Sol property advisor, I personally prefer resale properties for their authenticity, proven track record, and better value for lifestyle-focused buyers.
Yana
Marbella & Sotogrande Property Advisor
Marbella & Sotogrande Property Advisor
Helping
international investors navigate
Costa del Sol market
international investors navigate
Costa del Sol market
The less glamorous resale property is the smarter investment.
Costa del Sol Investment Verdict
Resale Properties Deliver Nearly Double the Returns.
Resale apartments on Costa del Sol generate almost double the investment returns compared to off-plan properties over a 5-year period.
The complete ROI analysis reveals:
✔️80% higher ROI (17.8% vs 9.9%)
✔️€21,000 more profit in your pocket
✔️ €200,000+ less capital required
✔️ Immediate cash flow from Day 1
✔️ Lower risk with proven communities
✔️ Easier exit strategy
Don't let new construction marketing overshadow Costa del Sol investment fundamentals.
Developer marketing sells lifestyle; actual numbers tell a different story.
📌Always run comparative ROI calculations for your specific properties and situation. But in most Costa del Sol scenarios, the less glamorous resale property is the significantly smarter investment choice for return-focused buyers.
Resale Properties Deliver Nearly Double the Returns.
Resale apartments on Costa del Sol generate almost double the investment returns compared to off-plan properties over a 5-year period.
The complete ROI analysis reveals:
✔️80% higher ROI (17.8% vs 9.9%)
✔️€21,000 more profit in your pocket
✔️ €200,000+ less capital required
✔️ Immediate cash flow from Day 1
✔️ Lower risk with proven communities
✔️ Easier exit strategy
Don't let new construction marketing overshadow Costa del Sol investment fundamentals.
Developer marketing sells lifestyle; actual numbers tell a different story.
📌Always run comparative ROI calculations for your specific properties and situation. But in most Costa del Sol scenarios, the less glamorous resale property is the significantly smarter investment choice for return-focused buyers.
Every investor's situation is unique.
👉 If you're considering Costa del Sol property investment,
I can help with:
👉 If you're considering Costa del Sol property investment,
I can help with:
✔️ Personalized ROI analysis for your situation
✔️Property evaluation and investment review
✔️Connections with specialized tax lawyers
✔️Access to off-market opportunities
💬 Contact me to discuss your investment goals.
✔️Property evaluation and investment review
✔️Connections with specialized tax lawyers
✔️Access to off-market opportunities
💬 Contact me to discuss your investment goals.
Disclaimer:
This analysis uses 2025 market data for the New Golden Mile area.
Results vary by location, property quality, and market timing.
Consult qualified Spanish tax and legal professionals before investing.
This article is not financial or legal advice, just for informational purposes.
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