Advantages of new construction
Buying a house logically entails costs. Unfortunately, this is no different on Ibiza than it is here in the Netherlands. We dive into all the costs, with indications of what you should roughly take into account. When you buy a new-build property from a developer on a turn-key basis, you save quite a bit of money than when you buy an existing property.
When you decide to buy a new house, there are many advantages. You will save on energy costs, you will not have any maintenance costs for the next few years and you will not have to deal with backlogs of maintenance. After all, everything is brand new. You will not inherit any defects from the previous owners and you will be the first to use the kitchen and the infinity pool. Even an extensive cleaning or refreshment is unnecessary.
Tax benefits of a newly built home
Whether you have to pay transfer tax and how much it is depends entirely on the type of purchase or sale. As a buyer, you will have to pay these costs. Whether you have to pay IVA (Spanish Sales Tax) or ITP (Impuesto Sobre Transmisiones Patrimoniales) depends entirely on whether it is a new build, a resale or a plot. So in this case, it is a new-build property and we are talking about IVA.
When buying an existing house with major renovation, you usually pay 21% IVA for the renovation costs. In the case of new build properties purchased from a developer, this is only 10% due to a government incentive scheme. This is therefore even 1% cheaper than the 11% transfer tax (ITP) that has to be paid when you buy an existing house of similar value.
Sustainable living
A newly built house must comply with the current technical regulations. These are described in the building regulations. This means that the floor, walls, doors and the roof must achieve certain insulation values. Also, for example, windows must have at least HR++ glass. So heating costs will remain low and the house will have a pleasant temperature in winter as well.
Besides the insulation values, there are other advantages of a newly built house. Because the villa is built with the latest materials and is approved according to current requirements, you are assured of a green, sustainable and environmentally friendly residence. Everything is built and checked according to the (technical) construction drawings. So you can count on a faster increase in value after completion and you have a guarantee on several components.
Disadvantages of new construction
In Spain, it is difficult to determine with whom you can do business best. Communication is often not as it is in the Netherlands and construction plans are often uncertain. Also, you often have limited choice when it comes to newly built houses on Ibiza. Because we don’t want you to be unpleasantly surprised after the purchase, we would also like to inform you about some of the disadvantages.
One of the main disadvantages of buying a new-build home in Ibiza is that they do not have a Home Warranty in Spain. So you always run the risk of not being able to finish your property or the developer going bankrupt. However, this great risk does not apply when you do business with us. Because the transport (transfer) of the villa takes place at the notary and the notary retains 10% deposit, we as a developer have to keep the agreements. Also, in this case there is no construction interest applicable and the completion is already in the short term (spring 2023). Even after completion, you can count on our Dutch aftercare. In short: “well taken care of in the Netherlands”.
