Top 10 dangerous mistakes when buying real estate in Spain.

Buying property abroad is an important decision associated with large financial investments. Spain is one of the most popular destinations for such investments: a favorable climate, developed infrastructure, and a large housing market attract many. However, the inexperienced buyer often encounters pitfalls that lead to additional expenses, legal complications, and other unpleasant surprises. In this article, we will look at the ten most common mistakes when buying property in Spain and how to avoid them.

Main mistakes and how to avoid them

1. Underestimating the need for professional help

Often, buyers decide to carry out the transaction on their own, relying on their own knowledge. However, the Spanish market has its own specifics: different tax regimes, legal aspects, and a complex registration system. Without the advice of an experienced realtor or lawyer, you may face risks:

• Incorrectly drawn up documents.
• Hidden encumbrances on the property.
• Technical and legal nuances (for example, the lack of a building permit).

Solution: find a trusted agency and a lawyer who specialize in the Spanish real estate market. The cost of their services will pay off with the savings in time and worries.

2. Lack of a clear plan and purchase goals

Many buyers do not specify for what purpose they are buying the property. The goals can be different:

• Permanent residence or family holidays.
• Renting out and receiving regular income.
• Investment for the purpose of future resale.

Solution: before buying, decide which parameters are important to you: proximity to the sea, heating, infrastructure, potential for price appreciation, etc. Then discuss these requirements with a realtor or consultant.

3. Ignoring the real costs

The amount indicated in the advertisement is far from the complete list of future expenses. In addition to the cost of the housing itself, in Spain there are taxes and additional costs:

• Property Transfer Tax or VAT (Value Added Tax) - depending on the type of property (second-hand or new).
• Notary (notary fees) and registry (property registration).
• Real estate agent fees.
• Property insurance, if you take out a mortgage (mortgage loan).
• Property tax and potential contributions to the community of owners.

Solution: draw up a detailed financial plan and clarify all taxes and fees in advance. It is useful to ask a consultant to approximately calculate the total amount so as not to exceed the budget.

4. Lack of understanding of the mortgage and its conditions

Buyers sometimes overestimate the benefits or their own solvency when applying for a mortgage. In Spain, in addition to the interest rate, you will have additional expenses:

• Life insurance (may be required for the granting of a mortgage loan).
• One-time expenses when opening a mortgage.
• Mandatory valuation of the housing by the bank.

Solution: compare offers from different banks and do not hesitate to ask about all associated charges. If this is your first purchase, or you find it difficult to understand the details, contact a mortgage broker.

5. Incomplete verification of the legal status of the property

The Spanish market is very diverse: there are apartments with illegal renovations, houses with unregistered extensions, and properties with debts of previous owners. To protect yourself:

• Request a nota simple (extract from the property register): it shows the owners, the existence of mortgages, and encumbrances.
• Ask the seller or the management company if there are any debts for utilities or taxes.
• Check if the building permit is up to date (when buying a house or a villa).

Solution: all documents, including the purchase agreement (escritura), should be checked by a lawyer. Also pay attention to the license of second occupation if you are buying a second-hand property.

6. Neglecting a thorough inspection of the housing

Inspecting a property "by photos" is risky. Photos sometimes hide defects, design flaws, or a view of a busy highway. In addition, in reality, some of the furniture or appliances listed in the advertisement may be missing.

Solution: be sure to visit the property in person or send a trusted person (for example, a realtor). Check the operation of the utilities, the quality of the repairs, and the location in relation to the infrastructure.

7. Insufficient verification of maintenance costs

In Spain, the monthly costs of maintaining housing can be considerable:

• Utility bills in urbanizations with a swimming pool, garden, and security.
• Heating or air conditioning costs.
• Garbage collection and elevator fees.

Solution: request the calculation of the community fees before signing the contract. Make sure you can pay these bills without affecting your budget.

8. Completely ignoring the issue of tax residence

If you plan to reside permanently or spend more than 183 days a year in Spain, you become a tax resident. This means that:

• Many incomes from around the world (not only from Spain) are subject to declaration.
• Model 720 (declaration of foreign assets) may be required.

Solution: consult with a tax specialist in advance. This is especially important if you have assets in other countries or plan to receive rental income.

9. Lack of planning for inheritance

Spanish inheritance law may differ from that of your home country. Inheritance costs and taxes in some autonomous communities are quite high, especially if the value of the property exceeds a certain threshold. In addition, not everyone knows in advance that, to simplify the inheritance process, it is sometimes more convenient to remain a non-resident.

Solution: discuss inheritance issues with a lawyer before closing the deal. In some cases, it is more advantageous to register the property in the name of a company or include future heirs in the purchase agreement.

10. Underestimating the factor of neighbors and seasonality

A common situation on the coast: in summer there are many tourists, the housing is filled with noisy vacationers, and in winter there is practically no one in the house. If you want to live permanently, this can create discomfort (closed shops, empty neighborhoods). On the other hand, if you buy to rent, the absence of neighbors out of season is not always critical.

Solution: visit the chosen area at different times of the year to understand the specifics of the place. Ask about the demand for the property in winter and summer if your goal is to rent it out.

Conclusions

Spain offers a huge selection of properties: from modest studios to luxurious villas on the coast. However, to make the purchase safe and the investment worthwhile, it is important to approach the issue comprehensively. Check the documents (Nota simple, inheritance certificate, purchase agreement), take into account the costs (taxes, community fees, mortgage), inspect the housing in person, and consult with professionals.

Remember that each of these mistakes can lead to significant financial losses and, sometimes, years of litigation. A well-prepared transaction will not only save you money and time, but will also provide peace of mind and confidence in your new Spanish home.