One of the most common moves in today's market in Torrevieja and the Costa Blanca involves owners selling their long-time homes — the downtown apartment or twenty-year-old bungalow — to upgrade to a new build with a pool, garage, and energy efficiency. The strategy is sound; the risk lies in the timing. Here is the complete guide to selling to buy new build without surprises.
The new build schedule works in your favour (if you use it)
Unlike buying a second-hand home — where between deposit and deed typically two or three months pass — new builds are bought in stages: reservation, private contract with deferred payments during construction, and final deed at handover, usually 12 to 24 months later. This lengthy window is your big advantage: it gives you time to sell your current home well, without rushing and underselling. The right strategy almost always is: reserve the new build first and put your house on the market immediately afterwards.
The three ways to finance the move
1. Sell before handover (the ideal). Sell during construction, rent for a few months if needed or arrange with your buyer a flexible handover date, and arrive at the new build deed with the money in hand.
2. Bridge mortgage. The bank combines your current loan and the new one while you sell, with a term (usually up to 5 years) to complete the sale. It brings peace of mind but requires financial capacity and increases costs.
3. Mortgage the new build and sell afterwards. Possible, but exposes you to paying for two homes simultaneously: only advisable if the sale is very advanced.
Tax considerations to keep on your radar
When selling your primary residence and reinvesting in another primary residence, you can apply the capital gains reinvestment exemption for IRPF with a two-year deadline, fitting well with new build timelines. If you are over 65 years old and sell your primary residence, the gain is exempt without the need to reinvest.
Purchasing a new build involves paying VAT (10%) + AJD, while your second-hand buyer will pay ITP: different costs to have calculated from day one. Don’t forget the municipal capital gains tax (plusvalía municipal) on your sale: it is calculated on your current property and paid to the town hall.
Common mistakes we see repeated
Signing the reservation without assessing your current home. If you don’t know what you will get, you won’t know what new build you can afford.
Setting the price “with room to negotiate” and losing construction months with the house lingering on listings.
Failing to coordinate handover dates: agreeing to vacate your current home without a buffer against developer delays (which often occur).
Handling the two processes separately: one agency to sell and separately the developer, without anyone aligning the whole picture.
How we do it at Mayrasa
We are the piece that aligns both clocks: we value your current home based on real sales in your area, sell it at the pace your delivery schedule requires — with a portfolio of national and international buyers — and advise you in selecting the development: here you can see the new builds available in Torrevieja and the Costa Blanca we work with. A single point of contact to sell your home and move into your new one without timing surprises.
Thinking of making the jump to a new build? Tell us about your situation and we’ll put together your complete schedule, free of charge.
