10 Hard Truths About Buying Property in Spain That Nobody Warns You About

Property brochures for Spain sell a dream. And the dream is real — the climate, the lifestyle, the value compared to the UK. But the process of getting there has friction points that nobody mentions until you're already committed. Here are ten things I wish every UK buyer knew before they signed anything.

1. The Purchase Costs Are Much Higher Than You Think

In England, stamp duty on a £400,000 property is £10,000. In Spain, total purchase costs on a €400,000 resale property in Andalusia run to roughly €40,000–52,000 — that's 10–13% of the purchase price, including Transfer Tax, notary fees, registry fees, and legal fees. On a new-build, it's even higher because you pay 10% VAT plus stamp duty instead of Transfer Tax.

Budget for 12–15% on top of the purchase price. If a property is at the top of your budget, you can't afford it.

2. Your UK Mortgage Means Nothing Here

A perfect credit score in the UK doesn't translate. Spanish banks assess non-residents separately, and the terms are significantly worse: maximum 60–70% LTV (you need a 30–40% cash deposit), fixed rates of 2.9–4.9% versus sub-1% for residents, and maximum terms of 20 years. If you're buying at €500,000, expect to need €150,000–200,000 in cash — the deposit plus purchase costs.

3. The NIE System Is Dysfunctional

The NIE (foreign identification number) is required for everything — buying, opening a bank account, signing utility contracts. The system for getting one ranges from same-day in some cities to 2–3 month waits in others. Málaga and Barcelona are consistently backlogged. The Spanish consulates in the UK (London, Manchester, Edinburgh) offer a more predictable timeline of 2–4 weeks, but you'll need to plan ahead. Don't leave this until you've already found a property.

4. Off-Plan Doesn't Mean "Off-Risk"

Off-plan purchases on the Costa del Sol commonly appreciate 5–10% from launch to completion, which sounds great. But construction delays are routine. A "2026 delivery" often means late 2026 or early 2027. Specifications can change. And while Spanish law requires developers to hold a bank guarantee on your stage payments, verifying this guarantee exists and is valid is your lawyer's most important job.

If a developer pressures you to skip the bank guarantee verification, walk away. Full stop.

5. Community Fees Are a Second Mortgage

If you buy in a complex or urbanisation, you'll pay monthly community fees (gastos de comunidad) that cover shared pools, gardens, lifts, security, and building maintenance. These range from €50/month for a basic apartment to €500+/month for a luxury resort-style complex. At the extreme end, La Zagaleta's community fees run about €1,000/month, plus the €11,000 annual club membership.

Always check the community's financial accounts before buying. Underfunded communities with deferred maintenance will hit you with special assessments (derramas) that can run into thousands.

6. Non-Resident Tax Is Annual — Even If Nobody Lives There

If you own property in Spain but aren't a Spanish tax resident, you owe Imputed Income Tax (IRNR) every year. The tax assumes your property generates income even if it's sitting empty. The calculation: 24% of 2% of the catastral value for non-EU residents (that's you, post-Brexit) or 1.1% if the catastral value was revised in the last 10 years. This typically works out to a few hundred euros a year, but it catches people off guard because there's no equivalent in the UK.

If you do rent the property out, you pay 24% on gross rental income with no deductions for expenses. EU residents pay 19% and can deduct expenses. This is one of the tangible post-Brexit penalties.

7. Spanish Inheritance Tax Can Be Brutal

Spanish inheritance tax (Impuesto sobre Sucesiones) applies to all assets located in Spain, regardless of the owner's nationality or residence. Rates vary by region — Andalusia has been generous with allowances in recent years, but other regions have not. Without proper planning, your heirs could face a tax bill of 7.65% to 34% of the property value, depending on the relationship, the region, and existing allowances.

Get a Spanish tax adviser to review your ownership structure before you buy. Not after. Before.

8. The Energy Certificate Is Often Meaningless

Spanish law requires an energy performance certificate for all property sales. In practice, many certificates are issued by assessors who never set foot inside the property. Most resale properties on the Costa del Sol score E, F, or G — the lowest possible ratings. This tells you almost nothing about actual energy costs but everything about how seriously the system is enforced.

If energy efficiency matters to you (and your utility bills suggest it should), commission your own independent assessment rather than relying on the one provided.

9. The 90-Day Rule Is Real and Enforced

Post-Brexit, UK citizens can spend a maximum of 90 days within any rolling 180-day period across the entire Schengen zone. Not per country — across all 27 Schengen countries combined. Spain introduced biometric tracking (the EES system) in October 2025. Overstaying results in fines, potential entry bans, and problems with future visa applications.

If you want to spend more than 90 days, you need a Spanish visa — either the Non-Lucrative Visa (€2,400/month income) or the Digital Nomad Visa (€2,849/month). There's no grey area here.

10. "Bargain" Prices Usually Have a Reason

If a property is priced significantly below the market average for its area, there's a reason. Common ones: illegal builds or extensions without a licence (distressingly common on the Costa del Sol, particularly in rural areas), community debts attached to the property, upcoming special assessments, noise issues from a nearby motorway or nightclub, or a title problem that will prevent clean registration.

Your lawyer's due diligence should catch all of these. But they can only catch what they're asked to look for. Hire an experienced conveyancing lawyer with local knowledge, not a generalist in Madrid.