7 Common Mistakes When Buying a Property in Spain — and How to Avoid Them

Buying a property in Spain is a dream for many international buyers — and for good reason. Marbella and the Costa del Sol consistently rank among Europe’s most desirable property destinations, offering warm climate, high quality of life, and strong long-term investment potential. Yet every year, international buyers make costly and avoidable mistakes — simply because the property purchase process in Spain differs significantly from their home country. This guide covers the 7 most common mistakes when buying a property in Spain and gives you practical steps to protect yourself at every stage.

In this article:

  1. Not hiring an independent lawyer
  2. Underestimating additional purchase costs
  3. Not verifying building permits
  4. Ignoring micro-location factors
  5. Not checking rental regulations
  6. Sorting out financing too late
  7. Not understanding the Spanish purchase process

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Mistake 1: Not Hiring an Independent Lawyer

One of the most dangerous mistakes international buyers make is relying on the seller’s agent or the developer’s recommended solicitor. In Spain, it is both common practice and strongly recommended to hire your own independent property lawyer — one who works exclusively in your interest. Your lawyer will conduct full legal due diligence before you commit to any purchase.

An independent lawyer checks:

  • Ownership status — who legally owns the property
  • Land Registry entries (Registro de la Propiedad) — all recorded charges, rights or restrictions
  • Outstanding debts or mortgages attached to the property
  • Building permits — whether the construction is fully licenced
  • Whether the property matches its cadastral description
  • Community of owners (Comunidad) charges and any outstanding fees

This legal review is not an optional luxury — it is the single most important step in protecting your purchase. Budget approximately €1,500–€3,000 for a qualified Spanish property solicitor. (depending on the property value)

Mistake 2: Underestimating Additional Purchase Costs

Many buyers focus entirely on the listed purchase price and overlook the significant additional costs of buying property in Spain. These taxes and fees are non-negotiable and must be factored into your budget from the outset.

When buying property in Spain, plan for additional costs of approximately 10–13% of the purchase price:

  • Property Transfer Tax (ITP) — 7–10% on resale properties (rate varies by region; Andalusia applies 7%)
  • VAT (IVA) — 10% on new-build properties instead of ITP
  • Stamp Duty (AJD) — 1.2% on new builds in Andalusia
  • Notary fees — approx. €600–€1,500 depending on the property value
  • Land Registry fees — approx. €400–€900
  • Legal fees — approx. €1,500–€3,000 for an independent lawyer
  • NIE number application — small fee but required for all foreign buyers

Example: A €500,000 property in Marbella could incur €50,000–€65,000 in additional costs. Plan your budget accordingly.

Mistake 3: Not Verifying Building Permits

This is a particularly critical issue with older or renovated properties in Spain. Extensions, terraces, pools and interior conversions may have been built without planning permission — meaning they are technically illegal structures. If you purchase such a property, you inherit the legal liability.

Your lawyer or an independent architect should verify:

  • Whether all existing structures are legally registered with the municipality
  • Whether any extensions, pools or outbuildings have approved building permits (licencia de obras)
  • Whether the property’s floor plan matches the cadastral certificate (catastro)
  • Whether there are any demolition orders or regularisation penalties outstanding

In Marbella and on the Costa del Sol, illegally extended properties are more common than buyers realise. A thorough building permit check before purchase can save you from inheriting a significant legal and financial problems.

Mistake 4: Not Analysing the Location Carefully

Many international buyers fall in love with a property during a single viewing on a sunny day — and make an emotional decision without conducting proper location due diligence. In Marbella and the Costa del Sol, micro-location has an enormous impact on both lifestyle and long-term property value.

Before committing, research:

  • Local infrastructure — road access, public transport, proximity to amenities and services
  • Planned future developments — check the local urban planning office (PGOU) for approved projects near the property
  • Proximity to beaches, golf courses, schools and international airports
  • Noise levels at different times — motorway proximity, flight paths, nightlife zones
  • Long-term resale potential — some micro-locations in Marbella consistently outperform others

At HOMEMADE Estate Marbella, our local expertise helps buyers understand exactly which areas of the Costa del Sol offer the strongest investment potential — and which ones to approach with caution.

Mistake 5: Not Checking Rental Regulations Before Buying

Many buyers in Marbella and the Costa del Sol purchase property with the intention of generating rental income. However, short-term holiday rentals are not automatically permitted — and failing to check this before buying can leave you with a property you cannot legally rent out.

Key factors to check before purchase:

  • Tourist licence (Vivienda con Fines Turísticos — VFT) — required for all short-term rentals in Andalusia, including Marbella
  • Community of owners (Comunidad de Propietarios) rules — many urbanisations prohibit or restrict holiday rentals by internal regulation
  • Local municipal restrictions — some areas of the Costa del Sol have introduced limits on new tourist licences
  • Long-term rental regulations — different rules apply to rentals over 31 days (LAU — Ley de Arrendamientos Urbanos)

Always instruct your lawyer to verify rental licence eligibility as part of the purchase due diligence — before you sign.

Mistake 6: Arranging Financing Too Late

If you require a mortgage to finance your property purchase in Spain, the time to arrange it is before you start viewing properties — not after you have found the one you want. Spanish banks have their own approval timelines, and delays in financing can cost you a desirable property.

“Spanish banks typically finance international buyers up to 60–70% of the property value. Secure your mortgage approval before you fall in love with a property.”

Key steps for international buyers seeking a Spanish mortgage:

  • Get a mortgage pre-approval or Agreement in Principle before beginning your property search
  • Open a Spanish bank account — required for all mortgage payments and property-related transactions
  • Obtain your NIE (Número de Identificación de Extranjero) — mandatory for all property purchases in Spain
  • Compare mortgage products from at least three Spanish lenders — rates and conditions vary significantly
  • Budget for mortgage arrangement fees, valuation fees and bank charges in addition to your 10–13% purchase costs

Mistake 7: Not Understanding the Spanish Property Purchase Process

Many international buyers are surprised by how the property purchase process in Spain works. It follows a structured legal sequence that differs from most northern European countries. Understanding each step eliminates anxiety and helps you make informed decisions at every stage.

Step 1: Reservation Agreement (Contrato de Reserva)

A reservation agreement is signed and a deposit of typically €5,000–€6,000 is paid to take the property off the market. This gives you a fixed period (usually 2–4 weeks) to complete legal due diligence before signing the private purchase contract.

Step 2: Private Purchase Contract (Contrato de Arras)

The Contrato de Arras is a legally binding commitment between buyer and seller. A deposit of typically 10% of the purchase price is paid. If the buyer withdraws, they forfeit the deposit. If the seller withdraws, they must return double the deposit.

Step 3: Notary Completion (Escritura Pública)

The final deed of sale is signed before a Spanish notary. At this stage, the remaining balance is paid, the keys are handed over, and legal ownership transfers to the buyer. The notary verifies all legal requirements are met.

Step 4: Land Registry Registration (Registro de la Propiedad)

After completion, your lawyer registers the property in your name at the Land Registry. This officially records your ownership and is the final step in the purchase process. Registration typically takes 4–8 weeks after completion.

Frequently Asked Questions: Buying Property in Spain

What are the most common mistakes when buying property in Spain?

The 7 most common mistakes are: (1) not hiring an independent lawyer, (2) underestimating additional costs of 10–13%, (3) not verifying building permits, (4) ignoring micro-location factors, (5) not checking rental regulations, (6) arranging financing too late, and (7) not understanding the 4-step purchase process. Each mistake is avoidable with the right preparation and professional guidance.

How much are the additional costs when buying property in Spain?

When buying property in Spain, buyers should budget for additional costs of approximately 10–13% of the purchase price. These include property transfer tax (ITP) at 7% in Andalusia (or 10% VAT on new builds), notary fees, Land Registry fees, and independent legal fees. On a €500,000 property, this means up to €65,000 in additional costs.

Do I need a lawyer to buy property in Spain?

While not legally mandatory, hiring an independent lawyer is strongly recommended for all property purchases in Spain. Your lawyer conducts full legal due diligence — checking ownership, Land Registry entries, outstanding debts, building permits, and community charges — all before you are committed to the purchase. Legal fees typically range from €1,500–€3,000.

Can I rent out my property in Marbella on a short-term basis?

Short-term rental of property in Marbella requires a tourist licence (VFT — Vivienda con Fines Turísticos) from the Junta de Andalucía. Additionally, your community of owners (Comunidad) may prohibit holiday rentals through its internal statutes. Always verify rental licence eligibility with your lawyer before purchasing a property with rental intentions.

How much will a Spanish bank lend to an international buyer?

Spanish banks typically finance international buyers up to 60–70% of the property value (compared to up to 80% for Spanish residents). This means a non-resident buyer needs a minimum deposit of 30–40% plus the 10–13% in taxes and fees. Pre-approval from a Spanish lender before beginning your property search is strongly recommended.

What are the steps in the Spanish property purchase process?

The property purchase process in Spain follows 4 clear legal steps: (1) Reservation agreement — pays a small deposit to secure the property, (2) Contrato de Arras — the binding private purchase contract with a 10% deposit, (3) Escritura Pública — notary completion and key handover, and (4) Land Registry registration — official recording of your ownership. The entire process typically takes 6–12 weeks.

What is a NIE number and do I need one to buy property in Spain?

A NIE (Número de Identificación de Extranjero) is a Spanish tax identification number that all foreign nationals must obtain before purchasing property in Spain. You will need your NIE to sign the purchase contract, pay property taxes, open a Spanish bank account, and register utilities. Apply early — processing times at Spanish consulates abroad can be 4–8 weeks.

Conclusion: Buying Property in Spain is Safe — If You Prepare Correctly

Buying property in Spain — and in Marbella and the Costa del Sol specifically — is a transparent, well-regulated process when approached correctly. The mistakes covered in this guide are entirely avoidable with proper preparation, the right professional team, and an experienced local agent by your side.

The Costa del Sol remains one of Europe’s most attractive long-term property investment destinations, with consistently strong demand from international buyers, a year-round warm climate, and excellent infrastructure. For buyers who do their due diligence, the rewards are significant.

Planning to Buy a Property in Marbella?
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