Common Mistakes When Buying Property in Spain (and How to Avoid Them)

Buying a home in Spain is a dream for many foreigners, but the process can quickly become a nightmare if you’re not aware of the risks. At Paramount Homes, we’ve identified the most common mistakes international buyers make—and, most importantly, how to avoid them so you can enjoy a safe and hassle-free purchase.

Mistake 1. Not Reviewing the Legal Documentation

Many buyers rely on what the agent or seller says without verifying the key documents.

Risk: hidden debts, mortgages, or even properties not properly registered.
Solution: always request the land registry extract (nota simple), community statutes, and debt certificates before signing.

Mistake 2. Signing Contracts Without Independent Legal Advice

In Spain, some agencies draft contracts that favor the seller rather than the buyer.

Risk: abusive clauses in the deposit contract (arras) or unclear conditions.
Solution: hire an independent lawyer who works exclusively for you.

Mistake 3. Underestimating the Real Costs of Purchase

The listing price is not the final price. Taxes, notary, registry, and lawyer’s fees can increase the cost by 10–15%.

Risk: running out of funds or having to adjust your budget at the last minute.
Solution: always calculate an additional 15% on top of the purchase price.

Mistake 4. Not Understanding Tax Obligations as a Foreigner

Taxes in Spain differ depending on whether you are a resident and whether you rent out your property.

Risk: tax penalties for not declaring correctly.
Solution: learn about ITP, VAT, stamp duty (AJD), plusvalía municipal, and non-resident tax before buying.

Mistake 5. Trusting Unrealistic Asking Prices

Many Spanish sellers set prices based on personal expectations, not market data.

Risk: overpaying for a property.
Solution: request a comparative market analysis to support your offer.

Mistake 6. Not Planning Financing in Advance

Mortgages for foreigners have specific conditions and require time to process.

Risk: losing the property because financing isn’t ready.
Solution: obtain a mortgage pre-approval before starting your search.

Mistake 7. Ignoring Community Rules

In many developments, there are restrictions on renovations, short-term rentals, or use of common areas.

Risk: buying a property only to find out you can’t use it as planned.
Solution: always review the community statutes before buying.

Mistake 8. Not Having Local Support

Language, bureaucracy, and cultural differences can create misunderstandings and delays.

Risk: unnecessary stress and poor decisions.
Solution: rely on a trusted local advisor who speaks your language and knows the system.

Frequently Asked Questions (FAQs)

Can a foreigner buy in Spain without a lawyer?
Yes, but it’s not recommended. Most legal issues arise when buyers skip independent legal advice.

How long does the purchase process take in Spain?
Between 1 and 3 months, depending on the property’s legal situation and whether a mortgage is required.

How much extra should I budget beyond the purchase price?
Between 10% and 15% of the property price, including taxes and legal fees.

Buying a property in Spain is a fantastic opportunity, but avoiding common mistakes is the key to making it a positive experience. With the right preparation and expert guidance, you can invest on the Costa del Sol with complete confidence.