Spain has plenty of legal protections for international property buyers – but that doesn’t mean it’s risk-free. From shifting exchange rates to legal hiccups and location regrets, it pays to know the common mistakes before you make your move.
Buying a home in Spain can be a smooth and rewarding experience – but only if you’re aware of the common pitfalls. Many buyers are caught out by fees, currency shifts or over-optimistic expectations about rural living. Others underestimate how different the buying process is from what they’re used to. With the right advice and forward planning, these pitfalls are easily avoidable.
Here’s how to sidestep the most common mistakes international buyers make when purchasing property in Spain.
Contents
- 1. Financial risk: underestimating the exchange rate
- 2. Legal issues: not using an independent solicitor
- 3. Tax and fee surprises on completion day
- 4. Skipping a structural survey
- 5. Picking the wrong location
- 6. Off-plan property: the hidden risks
- Plan ahead and avoid the pitfalls
1. Financial risk: underestimating the exchange rate
Buying in euros while budgeting in pounds? Then currency fluctuations are your biggest financial risk. Exchange rates can move significantly in the time it takes to complete your purchase. While the euro price of the property stays the same, what you end up paying in pounds could change dramatically. For example, if the pound falls by just 3% against the euro, your property will effectively cost you 3% more. On a large purchase, that difference could run into thousands – and potentially stretch your budget beyond what you planned.
Tip: Speak to a currency specialist early on. Tools like a forward contract allow you to lock in an exchange rate, shielding you from market swings. Our partners at Smart Currency Exchange can help you fix your rate and take the stress out of international transfers.
2. Legal issues: not using an independent solicitor
Your estate agent might suggest a lawyer, but that lawyer could be working in the seller’s interest, not yours. Always appoint your own independent solicitor, ideally one who specialises in Spanish property law and understands inheritance and taxes.
Connect with a trusted lawyer.
Discuss your situation with them early, especially if:
- You’re buying as an unmarried couple
- You plan to let the property out
- You’re considering renovations or extensions
Early advice could save you from costly surprises later. Need legal guidance? Contact our team at [email protected] or call 0808 252 7870 to speak to a trusted adviser.
3. Tax and fee surprises on completion day
Many buyers overlook the full cost of buying in Spain and only realise the actual amount they need to pay when it’s too late.
Allow for 10–15% of the property price to cover fees and taxes. Create a full breakdown with your lawyer or adviser before you make any offers. That way, you won’t be caught off guard at the notary’s office.
| Fee or tax | Typical cost (as % of price)* |
|---|---|
| Property transfer tax (resales) | 6–10% |
| VAT (new builds) | 10% |
| Notary fees | Up to €1,000 |
| Land registry | €500–€700 |
| Legal fees | 1–2% |
| Surveys, mortgage fees, utilities connection, insurance | Variable |
*Figures can vary slightly depending on the region and specific circumstances
4. Skipping a structural survey
It’s not standard practice in Spain to get a full survey – but that doesn’t mean you shouldn’t.
Poor-quality builds were common in the early 2000s. Even today, a survey can reveal hidden issues with the land or structure that could cost you thousands down the line.
Tip: If you want your offer to depend on the survey results, let your solicitor know before you sign anything.
You can find qualified surveyors via RICS Spain.
5. Picking the wrong location
It’s easy to get swept away by a beachfront view or a charming inland village. But the right location for a holiday isn’t always the right place to live or invest long-term.
Common location pitfalls include:
- Choosing somewhere too remote if you don’t speak Spanish
- Buying in seasonal towns that shut down in winter
- Overpaying to be directly on the coast
Work closely with your estate agent. In Spain, agents often take a more hands-on approach – they’ll suggest neighbourhoods that suit your lifestyle, help you understand the year-round vibe and steer you clear of under-served areas.
Search thousands of Spanish properties on Your Overseas Home.
6. Off-plan property: the hidden risks
The off-plan market in Spain has become much safer since the 2008 crisis. Today’s developments are backed by bank guarantees and strict legal requirements. However, issues can still arise.
Key risks with buying off-plan:
| Risk | What it means |
|---|---|
| Delays | Builds can take 12–24 months, with potential holdups |
| Living on a building site | Early buyers may face noise and dust for months |
| Financial commitment | A large deposit (10–30% of the property’s value) and other payments are required before completion |
| Market shifts | Falling prices could leave you in negative equity |
| Disappointment | Finished property may differ from what you expected |
To avoid disappointment:
- View past projects from the same developer
- Include snagging clauses in your contract
- Ensure legal guarantees are in place
Download our free guide to buying off-plan in Spain.
Plan ahead and avoid the pitfalls
Every one of these pitfalls can be avoided with the right preparation and local advice. Don’t try to navigate the Spanish property market alone – tap into local knowledge and ask lots of questions along the way.
- Download your free Spain Buying Guide
- Start your property search in Spain
- Connect with trusted professionals
- Email our friendly team at [email protected] or call for expert help on 0808 252 7870
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