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Buying Property in Spain: Pitfalls British Expats Need to Avoid
Buying property in Spain is exciting. It is also one of the easiest ways for British people to lose money, face legal problems or end up with a property they cannot sell.
The Spanish property market is different from the UK. The legal system is different. The buying process is different. The risks are different. This article covers the biggest pitfalls and how to avoid them.
Pitfall 1: Buying Without an Independent Lawyer
This is the single biggest mistake.
Some buyers use the developer's lawyer, the estate agent's lawyer, or skip the lawyer entirely. This is dangerous.
Why you need your own lawyer (abogado):
- The seller's or developer's lawyer works for the seller, not you
- An independent lawyer checks the property's legal status, debts, licences and planning permissions
- A lawyer reviews the contract before you sign
- A lawyer ensures the deposit is protected
- A lawyer checks that the property matches what is registered at the land registry
What a lawyer does:
- Due diligence: Checks the property is legally built, has no debts, has correct planning permission
- Land registry search: Confirms the seller owns it, confirms the boundaries, checks for mortgages or charges
- Contract review: Ensures the purchase contract protects you
- Deposit protection: Ensures your deposit (typically 10%) is held safely
- Completion: Attends the notary signing, ensures everything is correct
- Tax advice: Advises on transfer tax, stamp duty, plusvalía and other costs
Cost: Typically €1,000–€3,000 plus VAT. For a €200,000 property, this is 0.5–1.5% of the purchase price. It is the best insurance you can buy.
Pitfall 2: Buying Off-Plan or from a Developer
Off-plan properties (buying before construction is finished) and new-build properties from developers carry specific risks:
The Risks
- Developer goes bust — your money is lost, the property is unfinished
- Planning permission issues — the development is not fully legal; you cannot get utilities connected
- Delays — the promised completion date slips by months or years
- Quality issues — the finished property does not match the brochure
- Missing licences — the developer has not obtained the final licence of first occupation (licencia de primera ocupación); you cannot legally move in
How to Protect Yourself
- Only buy from established developers with a track record
- Ensure the developer provides a bank guarantee (aval bancario) or insurance policy that protects your deposit if the developer fails
- Verify planning permission is final and full, not provisional
- Check the developer has the licencia de primera ocupación or a clear timeline for obtaining it
- Have your lawyer review the purchase contract thoroughly
- Do not pay large deposits (more than 10%) without a bank guarantee
Red flag: A developer who pressures you to pay a large deposit quickly, who does not offer a bank guarantee, or who says "the licence will come later."
Pitfall 3: Not Checking the Property Is Legal
Spain has a significant problem with illegal builds — properties constructed without proper planning permission, on protected land, or with extensions that were not authorised.
The Problem
- An illegal property cannot be connected to mains electricity or water
- An illegal property cannot be sold legally
- An illegal property may face demolition orders
- Banks will not mortgage illegal properties
- Your insurance may be invalid
How to Check
Your lawyer should obtain a nota simple from the land registry (registro de la propiedad). This document shows:
- Who owns the property
- Whether there are mortgages or charges
- The registered description and boundaries
- Whether there are any legal notices or restrictions
Your lawyer should also check the catastro (tax registry) to verify the property matches the description.
If the nota simple and catastro do not match, investigate before proceeding.
Pitfall 4: Underestimating Costs
The purchase price is not the total cost. Budget for:
| Cost | Approximate Amount |
|---|---|
| Property transfer tax (ITP) | 6–10% of purchase price (varies by region) |
| Notary and land registry fees | €500–€2,000 depending on property value |
| Lawyer's fees | €1,000–€3,000 plus VAT |
| Valuation/survey | €300–€800 |
| Mortgage arrangement fees | 1–2% of loan value (if mortgaging) |
| Stamp duty (AJD) | 0.5–1.5% (varies by region and property type) |
| Plusvalía (municipal tax on land value increase) | Variable — can be significant on older properties |
| Connection fees | Electricity, water, gas connection charges |
| Community fees | Annual fees for apartment buildings and urbanisations |
| Annual property tax (IBI) | 0.4–1.1% of cadastral value |
Rule of thumb: Add 10–15% to the purchase price for buying costs.
Pitfall 5: The "Bargain" in the Wrong Area
A €60,000 apartment in an inland village sounds appealing. But consider:
- Resale value: Will you ever sell it? Many cheap inland properties sit on the market for years
- Rentability: Can you rent it out? Remote areas have limited rental demand
- Access: Is there reliable transport? Healthcare? Shops?
- Community: Are there other residents, or is it a ghost development?
- Maintenance: Empty properties deteriorate. Damp, heat, dust, rodents — all problems in abandoned areas
The honest truth: Many of the cheapest properties in Spain are cheap for a reason. They are in areas with declining populations, poor services and no rental market.
Pitfall 6: Not Understanding Community Fees
If you buy an apartment or a house on an urbanisation (a shared development), you will pay community fees.
- These cover maintenance of shared areas: gardens, pools, lifts, roads, lighting, security
- Fees vary enormously: €50/month to €500+/month depending on facilities
- Unpaid community fees are a debt on the property. The previous owner's unpaid fees can become your problem if not settled at completion
- Some communities have debts — they borrowed money for repairs and the debt is shared by owners
Check before buying:
- Current monthly community fee
- Any outstanding debts of the community
- Recent or planned major works (roof repairs, lift replacement, pool refurbishment)
- Minutes of recent community meetings (juntas de propietarios)
Red flag: A community with high debts, frequent special levies or ongoing disputes between owners.
Pitfall 7: Buying with a UK Mortgage or Without Checking Spanish Mortgage Rules
Some British buyers assume they can get a UK mortgage for a Spanish property. This is usually not possible.
Spanish mortgages:
- Available from Spanish banks and some international lenders
- Typically require a minimum 30% deposit for non-residents (sometimes 40%)
- Interest rates may be higher than UK mortgages
- Arrangement fees are typically 1–2%
- Early repayment penalties are common
Do not sign a purchase contract assuming you will get a mortgage. Get a mortgage agreement in principle before committing.
Pitfall 8: Ignoring the Residency Question
Buying property in Spain does not give you the right to live in Spain. It does not give you a visa. It does not give you residency.
This is the single most dangerous misconception.
You can own property in Spain and visit for 90 days under the Schengen rules. To live there, you need a visa or residence permit.
Do not buy a property assuming you can "just move in." The property purchase and the visa application are completely separate processes.
Pitfall 9: Not Planning for Ongoing Costs
Owning property in Spain involves ongoing costs that some buyers underestimate:
| Cost | Annual Estimate |
|---|---|
| IBI (property tax) | €500–€2,000+ depending on value and region |
| Community fees | €600–€6,000+ |
| Utilities | €1,200–€2,500 (electricity, water, gas, internet) |
| Maintenance | €500–€2,000+ (repairs, painting, garden, pool) |
| Insurance | €300–€800 |
| Non-resident income tax | If you are not tax resident, you pay tax on deemed rental income even if you do not rent the property |
| Wealth tax | Some regions charge annual wealth tax on property value |
Rule of thumb: Budget 2–4% of the property value per year for ongoing costs.
Pitfall 10: Buying Without Visiting in Different Seasons
A property that looks idyllic in April may be unbearable in August or damp and cold in January.
Visit in:
- July or August — to experience the heat, the crowds, the tourist pressure
- January or February — to experience the winter reality (heating, damp, isolation)
- November — to see the off-season atmosphere
Stay locally, not in the property itself. Rent nearby for a week. Shop in local supermarkets. Try to get an appointment at the health centre. Drive the roads in the rain.
The Decision to Buy vs Rent
For many British people moving to Spain, renting first is the safer option:
| Buying | Renting | |
|---|---|---|
| Capital tied up | High | Low |
| Flexibility | Low — hard to sell quickly | High — leave with notice |
| Risk | High — market fluctuations, legal issues | Low |
| Learning curve | You own the problems | Landlord handles many issues |
| Cost | High upfront + ongoing | Monthly rent only |
| Residency | Property does not grant residency | Renting does not either — visa still needed |
Recommendation: Rent for 12 months before buying. Learn the area. Learn the market. Learn whether Spain suits you. Then buy with confidence.
Summary: Property Buying Checklist
- [ ] Appoint an independent Spanish lawyer (abogado)
- [ ] Obtain a nota simple from the land registry
- [ ] Verify the property is legal and has correct planning permission
- [ ] Check the catastro matches the physical property
- [ ] Verify community fees and any community debts
- [ ] Budget 10–15% extra for purchase costs
- [ ] Budget 2–4% of property value annually for ongoing costs
- [ ] Get a mortgage agreement in principle before committing
- [ ] Visit the property and area in different seasons
- [ ] Understand that property ownership does not grant residency
- [ ] Consider renting first for 12 months
- [ ] Never sign a contract you do not fully understand
What Costa Bridge Can Do
Costa Bridge is not a property adviser and does not handle property transactions. We do not sell property, find property or recommend specific developments.
However, our Move-to-Spain Readiness Review includes:
- Property-strategy discussion: buy vs rent, timing, area selection
- Cost-of-living reality check including property ownership costs
- Warning signs to discuss with your lawyer
- Referral to independent property lawyers in your target area
- Timeline planning: when to engage a lawyer relative to your visa and move dates
This article was last updated in July 2026. Property law, taxes and regulations vary by autonomous community and change over time. Always engage an independent property lawyer before buying property in Spain.
This is practical guidance and risk awareness, not property, legal or financial advice. Costa Bridge does not provide property, legal or financial advice.