10 Pitfalls Buying Property in Spain — And How to Avoid Them

Buying property in Spain should be exciting — and for most people it is. But every year, buyers make avoidable mistakes that cost them money, time, and sometimes the property itself. At Mediter Real Estate, we help our clients avoid every one. Here are the 10 most common pitfalls.

1. Not Getting Your NIE/TIE Early Enough

The NIE is Spain's foreigner identification number. You need it for virtually every step. Many buyers leave the application until the last minute.

• Apply for your NIE as soon as you start seriously looking
• You can apply via the Spanish consulate or in Spain at the police station
• A gestoría can handle the application with a power of attorney

2. Underestimating the Additional Costs (The Hidden ~13%)

Additional costs typically add 10–15% on top of the purchase price.

Budget 13% on top as a safe working figure.

3. Not Using an Independent Lawyer

Some buyers rely on the seller's lawyer or skip legal representation. Always appoint your own independent lawyer who specialises in Spanish property law.

4. Skipping Due Diligence

Problems that can lurk beneath the surface:

• Outstanding debts on the property — these can transfer to you
• Illegal building works or extensions
• Planning issues — protected land or flood zone
• Title problems
• Mortgage charges still registered

Your lawyer should obtain a Nota Simple, verify the cadastral reference, check debts, and confirm building licences.

5. Not Understanding Contrato de Arras Obligations

Under arras penitenciales: buyer pulls out = lose deposit (10%). Seller pulls out = return double.

• Never sign without your lawyer reviewing it
• Negotiate conditional clauses (mortgage approval, survey)
• Understand the completion deadline

6. Currency Exchange Losses

Using your bank for transfers gives poor rates. Use a specialist FX service — the difference on €300,000 can be €3,000–€5,000. Consider a forward contract to lock in rates.

7. Ignoring Community Rules

Buying without checking the community bylaws. You might find:

• Tourist rentals prohibited
• Pets restricted
• Large special levy (derrama) planned
• Community has financial problems

Request bylaws and last three years of meeting minutes before purchasing.

8. Not Checking the First/Second Occupation Licence

Without this licence you may not be able to connect utilities, obtain a mortgage, apply for tourist rental licence, or sell easily in future.

9. Buying Without Visiting (Or Only in Summer)

Spain in August is very different from January. Issues that only appear with an off-season visit:

• Noise from nightlife
• Damp problems in winter
• Road access issues
• Neighbourhood feel when holiday atmosphere is gone

Visit at least twice, ideally in different seasons.

10. Rushing the Process

Do not let anyone pressure you into signing before due diligence is complete. Typical timeline: 6–12 weeks from arras to completion.

Summary: Your 10-Point Protection Plan