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The Mistakes That Cost the Most
Most problems foreign buyers encounter in Spain come down to three things: not doing proper legal checks, underestimating costs, and assuming the process works the same as in their home country. Here are the mistakes we see most often, and how to avoid them.
1. Skipping independent legal representation
This is the single most important piece of advice for any foreign buyer in Spain: hire your own lawyer. Not the seller's lawyer, not the estate agent's recommended lawyer — your own independent abogado who works exclusively in your interest.
A good property lawyer will check the land registry records (nota simple), verify that the property has no outstanding debts or legal issues, confirm urban planning compliance, and review all contracts before you sign. Their fee — typically 1% of the purchase price or €1,500–3,000 fixed — is trivial compared to the problems they can prevent.
2. Not checking for debts on the property
In Spain, certain debts are attached to the property, not the person. If the previous owner has unpaid property tax (IBI), outstanding community fees, or a lingering mortgage, those liabilities can transfer to you as the new owner.
Your lawyer should obtain:
- A nota simple from the Land Registry — shows mortgages and charges
- An IBI payment certificate from the town hall — confirms property tax is current
- A community fee certificate from the building administrator — confirms no outstanding community charges
- Utility bills — request copies of recent electricity, water, and gas bills
Community fee debts from the current and previous three years transfer to the new owner under Spanish property law. On a typical community with €200/month fees, that could mean up to €9,600 in inherited debt if four years of fees are unpaid.
3. Underestimating the total cost
The purchase price is only part of the expense. Additional costs — taxes, notary, registry, and legal fees — typically add 10–13% on top. A property listed at €300,000 will actually cost €330,000–340,000 once everything is paid.
For a full breakdown, see our articles on taxes and fees and hidden costs when buying.
4. Not having an NIE before you start
The NIE (Número de Identificación de Extranjero) is required for virtually everything: signing the purchase deed, paying taxes, opening a bank account, setting up utilities. Without it, the process stalls.
Apply early. In Spain, processing takes 1–3 weeks at a police station. Via a Spanish consulate abroad, it can take 4–8 weeks. A lawyer or gestoría can apply on your behalf for around €100–150.
5. Assuming mortgage terms match your home country
Spanish banks lend differently to foreign buyers. Non-residents typically receive a maximum of 60–70% loan-to-value — meaning you need 30–40% as a cash deposit, plus another 10–12% for taxes and fees. That's 40–50% of the purchase price in cash.
Get a mortgage pre-approval before you start searching. This clarifies your budget and shows sellers you're a serious buyer. For more detail, see our mortgage guide for foreign buyers.
6. Skipping the Contrato de Arras
The contrato de arras (private purchase agreement) secures the property with a 10% deposit and creates binding obligations for both parties. If the buyer pulls out, they lose the deposit. If the seller pulls out, they must return double the deposit.
Some buyers skip this step to save time or money, leaving them vulnerable to the seller accepting a higher offer from someone else. Always have your lawyer review and sign a contrato de arras before you've invested significant money in surveys, mortgage applications, or legal checks.
7. Assuming short-term rentals are always allowed
Many buyers purchase with the intention of renting on Airbnb, only to discover that tourist-rental rules are regional and sometimes local. A property that works as a short-stay let in one municipality or building may face extra restrictions in another.
Before buying a property as a rental investment, verify that a tourist rental licence is available in that specific location. Your lawyer should check with the local town hall and regional tourism authority.
8. Not planning for ongoing tax obligations
Buying the property is not the end of your financial obligations. Even if you use the property only as a holiday home and never rent it out, you'll owe:
- IBI (annual property tax) — 0.4–1.1% of cadastral value
- Non-resident imputed income tax — Spain taxes non-residents on a notional income from their property (1.1–2% of cadastral value, taxed at 19% for EU residents or 24% for non-EU)
- Wealth tax — may apply depending on property value and your region (thresholds and rates vary)
If you rent the property out, you must also declare and pay tax on that rental income. A Spanish tax advisor (asesor fiscal) can set up your annual filings and ensure compliance.