12 Common Mistakes When Buying Property in Spain

This is the single most expensive mistake a UK buyer can make in Spain, and it happens with alarming regularity. The seller's agent recommends "a good lawyer who speaks English," the buyer accepts without question, and that lawyer turns out to work primarily for the developer or the agency.

An independent lawyer's sole duty is to you. They should have no financial relationship with the estate agent, the developer, or the seller. If your lawyer was recommended by the selling party, ask yourself: whose interests are they really protecting?

What can go wrong:

• The lawyer fails to flag planning issues because it would kill the deal (and their referral fee)
• Unfavourable contract terms are glossed over or not explained
• Due diligence is superficial — checks that should take days are completed in hours
• The lawyer does not negotiate on your behalf because they do not want to upset the agent

How to avoid it: Find your own lawyer independently. Ask for recommendations from other UK buyers, check the Colegio de Abogados (bar association) register, and ensure they have professional indemnity insurance. Budget 1% of the purchase price plus IVA for legal fees — it is the best money you will spend. See our guide to choosing a Spanish property lawyer.

In the UK, your solicitor runs title searches, local authority checks, and environmental reports as standard. In Spain, these checks happen too — but only if your lawyer is competent and proactive. There is no automated conveyancing system, and no one will chase you if a check is missed.

Essential checks your lawyer must perform:

• Nota simple from the Land Registry — confirms ownership, mortgage charges, and any encumbrances (see our nota simple guide)
• Catastro check — verifies the property's registered size, boundaries, and tax value
• Town hall (ayuntamiento) check — confirms planning permission, first-occupation licence, and any pending enforcement actions
• Community fees certificate — confirms the seller is up to date with community payments
• Utility check — ensures electricity, water, and gas contracts are in order and transferable
• Physical inspection vs registered area — compares what is actually built with what is in the official records

Skipping any of these can result in buying a property with undeclared debts, illegal extensions, or no legal right to connect to the water supply. Every one of these problems has happened to UK buyers on the Costa del Sol. Insist on written confirmation from your lawyer that all checks are complete before you sign the contrato de arras.

The purchase price is just the starting point. UK buyers routinely underbudget because they do not account for the 10–14% in additional costs that apply to every Spanish property purchase.

A quick breakdown on a €300,000 resale property in Andalucía:

• Transfer tax (ITP at 7%): €21,000
• Lawyer fees (~1% + IVA): €3,630
• Notary fees (~0.4%): €1,200
• Land Registry (~0.5%): €1,500
• Gestor, bank, and admin: €1,000–€2,000
• Total additional costs: approximately €28,000–€29,000 (9.5%+)

For new-build properties, the tax burden is even higher: IVA at 10% plus AJD at 1.2% = 11.2%, compared to 7% ITP on resale.

How to avoid it: Use our buying costs calculator to model your total outlay. Request a written cost estimate from your lawyer before signing anything. And keep a contingency of at least €2,000–€3,000 for unexpected extras.

This mistake alone can cost you £3,000–£7,000 on a typical property purchase. UK high-street banks apply exchange rate margins of 2–4% on international transfers. Specialist currency brokers operate on margins of 0.3–0.7% — saving you thousands on a single transaction.

On a €300,000 transfer, the difference between your bank's rate and a specialist broker's rate can be £5,000+. That is money you could spend on furnishing your new home, not padding your bank's profits.

How to avoid it: Open accounts with two or three specialist brokers (Currencies Direct, OFX, Wise) before you start your property search. Compare rates, ask about forward contracts to lock in a rate for your completion date, and never use your bank for the main transfer. See our currency exchange guide for a detailed comparison.

"You need to sign today or you will lose it." This line — or variations of it — has pressured countless UK buyers into commitments they were not ready for. While the Spanish property market can move quickly, especially in popular areas like Marbella and Estepona, no legitimate purchase should require you to skip due diligence or sign without legal review.

Warning signs of unhealthy pressure:

• The agent insists you sign a reservation agreement and pay a deposit immediately, before your lawyer has seen any documentation
• You are told that "another buyer is interested" and there is no time to wait — the oldest trick in the sales book
• The seller or developer refuses to give your lawyer time to complete standard checks
• You are discouraged from appointing your own lawyer ("our lawyer can handle everything")

How to avoid it: A reasonable seller will allow 7–14 days for your lawyer to conduct due diligence after a reservation agreement is signed. If someone will not wait, walk away. There will always be another property — there may not be another chance to avoid a costly mistake.

Spain's construction boom of the 2000s left a legacy of properties built without proper planning permission. Extensions, swimming pools, garages, and even entire houses were constructed without licences — and many are still on the market today. Buying one can mean you inherit a demolition order, face mortgage refusal, or discover the property is uninsurable.

How to avoid it: Your lawyer must check the property's first-occupation licence, compare the physical structure with the Catastro and Registro de la Propiedad records, and verify the land classification at the town hall. Any discrepancies must be resolved before you commit. See our illegal builds guide for a detailed checklist.

Community fees are an ongoing, non-negotiable cost of owning property in a Spanish development. They can range from €50 to €500+ per month depending on the facilities, and they can increase annually. A derrama — a one-off special levy for major repairs — can add thousands of euros on top.

What catches people out:

• The estate agent quotes the community fee but does not mention the derrama that was approved last month
• The community has been undercharging for years and a large fee increase is imminent
• The previous owner has unpaid community fees — and under Spanish law, the debt follows the property, not the person

How to avoid it: Before signing anything, request the community's annual budget, recent meeting minutes (actas), and a certificate of debt from the administrator. Your lawyer should review all of these. See our community fees guide.

If you own property in Spain and die without a Spanish will, your heirs face a lengthy, expensive, and bureaucratic process to inherit the property. Spanish inheritance procedures for foreign nationals without a local will can take 12–18 months and cost thousands in legal and translation fees.

A Spanish will covering your Spanish assets costs under €200 at a notary and takes 30 minutes to prepare. It does not replace your UK will — it supplements it, dealing only with your Spanish property and assets.

How to avoid it: Make a Spanish will at the same time as completing your property purchase. Your lawyer can draft it and you sign at the notary, often on the same day as the escritura. It is the simplest and cheapest piece of legal admin in the entire process, yet many buyers skip it.

Post-Brexit, UK citizens are subject to the Schengen 90/180-day rule. You can spend a maximum of 90 days in any rolling 180-day period in the Schengen area. Many new property owners discover this the hard way — planning an extended summer stay and then realising they cannot return for Christmas.

Key misunderstandings:

• The 90 days apply to the entire Schengen zone, not just Spain — a week in Portugal or France counts
• The 180-day window is rolling, not calendar-based — there is no annual reset
• Owning property gives you no extra immigration rights whatsoever

How to avoid it: Count your days carefully using the European Commission's official calculator. If 90 days is not enough, apply for a visa before you need it. See our 90-day rule guide.

You are on the Costa del Sol, the sun is shining, you have just had a wonderful lunch overlooking the sea, and the apartment the agent is showing you feels perfect. You put down a deposit that afternoon. Three months later, back in grey England, you realise the apartment is 40 minutes from the nearest supermarket, the community pool is shared with 200 units, and the "sea view" is only visible if you lean over the balcony at a 45-degree angle.

How to avoid it: Visit the property at least twice, ideally at different times of day and different times of year. Walk around the neighbourhood. Check the commute to the airport, the nearest medical centre, and the grocery shops. Talk to other residents in the development. Make your decision with a clear head, not a sunburnt one.

The buying costs are one thing; the annual running costs are another. Many UK buyers budget meticulously for the purchase and then are caught off guard by the ongoing expenses:

• IBI (property tax): €300–€2,000/year depending on location and catastral value
• Community fees: €600–€6,000/year
• Non-resident income tax (IRNR): Even if you never rent the property out, you must file and pay — typically €200–€500/year
• Home insurance: €200–€500/year
• Utilities (even when empty): Standing charges on electricity, water, and internet can cost €100–€150/month
• Maintenance and upkeep: Budget at least €1,000/year for a property you visit occasionally

How to avoid it: Budget €3,000–€8,000 per year for ongoing costs on a typical Costa del Sol property, depending on the size and community. Factor this into your financial planning from the start.

Spain and the UK have different tax systems, and owning property in Spain creates tax obligations in both countries. Many UK buyers assume that because they are paying tax in Spain, they do not need to worry about the UK — or vice versa. This is wrong and can result in penalties from both HMRC and the Agencia Tributaria.

Key tax obligations many buyers overlook:

• Annual non-resident tax return (Modelo 210): Must be filed even if the property sits empty all year
• Rental income reporting: Rental income must be declared in Spain and may need to be reported in the UK (with double taxation relief)
• Capital gains tax on sale: Spain retains 3% of the sale price from non-resident sellers as a withholding against CGT — you must file a return to reclaim any overpayment
• Wealth tax: Applies to net Spanish assets above €700,000 in Andalucía

How to avoid it: Appoint a Spanish tax adviser (asesor fiscal) or gestor to handle your annual filings. Costs are modest — typically €150–€300 per year for non-resident returns. Also inform your UK accountant about your Spanish property. The UK–Spain double taxation treaty will prevent most double taxation, but only if you claim the relief.