It’s one of the first questions many buyers ask when they start seriously considering property in Mallorca: do I buy something that already exists, or do I invest in something being built? Both routes can lead to your dream home. But they involve different experiences, different tax treatments, different timelines — and, ultimately, different kinds of value.
There’s no universal right answer. What matters is understanding the genuine trade-offs, so you can make the choice that suits your circumstances. This guide sets out the honest case for each.
What We Mean by ‘Off-Plan’ and ‘Resale’
Off-plan (or new build) means buying a property from a developer before or during construction. You’re purchasing based on architectural plans, specification sheets, and rendered images. You pay in stages as the build progresses, and you receive the finished property — typically 12 to 24 months after signing.
Resale means buying an existing property from a private seller. What you see is largely what you get: you can walk through every room, examine the walls, look at the pool, and make an informed assessment of condition before committing.
Both exist in good supply in Mallorca, though the balance has shifted in recent years as new build supply has tightened significantly.
The Financial Case: Off-Plan Can Offer Early-Mover Value
One of the strongest arguments for buying off-plan is price. Developers often price properties at launch below what they expect the completed property to command on the market — sometimes 10–20% below comparable finished homes in the same area. If the market moves in the right direction during the build period (and in Mallorca’s luxury segment it typically has, rising 5–8% annually in recent years), a buyer can see meaningful capital appreciation before they’ve even received the keys.
This is not guaranteed, of course. Markets can soften. But in a supply-constrained environment like Mallorca — where very little new buildable land exists in prime areas and planning permissions are increasingly difficult to obtain — the structural case for capital appreciation in quality new builds remains strong.
Payment flexibility is another financial advantage. Off-plan purchases typically spread payments over the build programme — a deposit at reservation, staged payments at construction milestones, and the balance at handover. This means you’re not required to produce the full purchase price immediately, giving you time to arrange finances.
The Tax Difference: IVA vs ITP
This is a practical distinction that matters for your budget planning.
New builds are subject to VAT (IVA) at 10% of the purchase price, plus Actos Jurídicos Documentados (AJD) stamp duty at 1.5% (or 2% for properties over €1 million).
Resale properties are subject to Impuesto sobre Transmisiones Patrimoniales (ITP) — a progressive transfer tax that ranges from 8% to 13% depending on the purchase price band.
For properties in the €500,000–€1,000,000 range, the tax burden is broadly comparable between new and resale. But for higher-value properties — particularly luxury villas above €2 million — the ITP rates (12–13%) can be significantly higher than the 11.5% (IVA + AJD) that applies to new builds. This is worth factoring in for premium purchases.
Customisation: The Undeniable Advantage of Off-Plan
If there’s one area where off-plan genuinely wins outright, it’s customisation. Buying at the design or early construction stage means you can make meaningful choices about your home:
- Floor plans and room layouts (within the structure)
- Internal finishes — flooring, tiles, wall treatments
- Kitchen specification — units, worktops, appliances
- Bathroom design
- Pool size, shape, and finish
- Landscaping and terracing
- Smart home integration, solar systems, energy features
- External render colours, shutters, gates
This isn’t just an aesthetic luxury. A home designed around how you actually live, with the kitchen where you want it and the terrace facing the view you want, is functionally different from adapting yourself to someone else’s choices.
For buyers working with a developer like Coertze & Clacher, the collaboration between client and design team is central to the process — an iterative conversation rather than a catalogue selection.
Quality Assurance: New Builds Have Clear Legal Protections
When you buy a brand-new property in Mallorca, you benefit from mandatory warranties under Spanish law:
- 1-year warranty on finishes and fittings (superficial defects)
- 3-year warranty on mechanical and installation systems (plumbing, electrics, HVAC)
- 10-year structural warranty (seguro decenal) — required by law for new residential buildings, covering major structural defects
All advance payments made during construction must also be protected by a bank guarantee or insurance policy. If the developer fails to complete the project, you can reclaim every euro paid.
New builds must also comply with current Spanish building codes and energy efficiency standards — which are considerably more stringent than those that applied to properties built 20 or 30 years ago.
The Case for Resale: Certainty, Character, and Immediate Occupation
Resale properties have their own compelling advantages.
What you see is what you get. You can walk into the property, feel the quality of the materials, assess the views from every room, check the condition of the pool, test the water pressure, inspect the roof. There’s no uncertainty about the finished product.
Immediate occupation. If your timeline requires moving in within six months, off-plan is unlikely to work for you. Resale lets you complete and move in on a schedule that suits your life.
Established character. The great traditional Mallorcan properties — stone fincas with century-old olive trees, houses with Moorish arched courtyards, townhouses with vaulted cellers — are simply not replicable. They exist, or they don’t. If the soul of an old house matters to you, resale is your route.
Price negotiation. The private market allows for negotiation in ways that developer pricing typically doesn’t. In a market where sellers have been holding properties for some time, there can be genuine room to negotiate.
Established neighbourhoods. With resale, you know exactly what surrounds the property — the neighbours, the access road, the seasonal character of the area. With off-plan in a new development, some of that context can only be guessed at.
The Risks: Being Honest About Both Routes
Off-Plan Risks
Construction delays are the most common frustration in off-plan purchases. Building projects in Mallorca — and across Spain — frequently run beyond their projected completion dates, sometimes by months. Most well-drafted contracts include grace periods and compensation clauses, but you should have a realistic expectation that your timeline may shift.
Market changes. You’re committing based on today’s prices in a market that may look different in 18 months. In Mallorca’s luxury segment, the structural conditions (limited supply, sustained international demand) have meant this risk has generally played in buyers’ favour — but it’s not a guarantee.
Developer risk. Less of a concern with established developers with a track record, but critical to check. Ask to see completed projects, speak to previous clients, and confirm the bank guarantees are in place.
Resale Risks
Hidden defects. Older properties can conceal problems — structural issues, damp, outdated wiring, poorly documented extensions. A professional survey and thorough legal due diligence are essential.
Legal status of older buildings. Many rural properties in Mallorca have ancillary structures — a pool house, a guest cottage, an extra garage — that were added over the years without planning permission. If these aren’t legalised, they represent a liability. Your lawyer must verify the legal status of every structure on the property.
Renovation costs. If you’re buying a resale property that needs updating, the cost and timeline of renovation in Mallorca can surprise buyers unfamiliar with the local building market.
Which Is Right for You?
The honest answer is that neither is universally better. The right choice depends on your timeline, your attachment to customisation, your appetite for uncertainty, and what kind of home you’re looking for.
What we’d say is this: the best off-plan projects in Mallorca are produced by developers with deep local roots, genuine craftsmanship, and a commitment to using the island’s own materials and building traditions. When those ingredients come together, you can end up with something more beautiful and more you than anything available on the resale market.
At Coertze & Clacher, that’s exactly what we try to build. If you’d like to see what’s currently under way — or discuss what’s possible — explore our projects at coertzeclacher.com.
See our current projects → Explore Coertze & Clacher developments in Mallorca