Spain offers strong legal protections for overseas property buyers, but that doesn’t mean every purchase is risk-free. Some of the biggest mistakes buyers make include underestimating currency movements, cutting corners on legal advice and making lifestyle assumptions that don’t quite match reality once the keys are handed over.
Buying a home in Spain can be an enjoyable and well-structured process if you understand how it differs from buying back home. Problems tend to arise when buyers underestimate costs, rely on the wrong professionals or fall in love with a location without considering how it will suit their everyday life. With proper advice and a bit of forward planning, these issues are avoidable – and that’s exactly what this guide is designed to help you do.
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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
- FAQs about common mistakes when buying in Spain
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
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 some guidance?
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.
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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
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
- Speak to our friendly team
FAQs about common mistakes when buying in Spain
One of the biggest mistakes is not using an independent solicitor. Some buyers rely on a lawyer recommended by the seller or estate agent, which can lead to conflicts of interest. You should always appoint a qualified Spanish lawyer who works solely for you, checks the property’s legal status and explains your obligations clearly before you commit.
Buyers often underestimate the impact of exchange rate movements, fail to budget for the full 10–15% purchase costs or skip surveys on older properties. Others buy in locations that work well for holidays but feel isolated or inconvenient for longer stays. Off-plan purchases can also carry risks if timelines slip or market conditions change. The key to avoiding these pitfalls is independent advice, realistic budgeting and taking time to understand how the property will fit into your life year-round.
Yes, this is very common. The purchase price is only part of the picture. Taxes, notary fees, land registry costs, legal fees and currency transfer charges all add up. Many buyers only realise this close to completion, which can cause unnecessary stress. A good lawyer or adviser will give you a clear cost breakdown before you make an offer, so you know exactly what to expect.
It’s possible, and many overseas buyers do it successfully, but it requires extra care. Virtual viewings can work well if you have a trusted team on the ground. You should still arrange a survey, ensure all paperwork is checked independently and, ideally, have someone physically inspect the property on your behalf before contracts are signed.
Off-plan purchases are much safer than they were before the 2008 crisis, thanks to stricter regulations and bank guarantees. That said, delays, design changes and market shifts can still happen. You can reduce risk by choosing experienced developers, viewing previous projects, ensuring all payments are legally protected and having clear snagging and completion clauses in your contract.
