More and more foreigners are looking to buy property in Spain - they account for 13% of demand - but the majority of them fail to inform themselves about the specifics of the country's real estate market and buying process. As a result, they sometimes run into difficulties that can prove costly. 

Terreta Spain explains the 6 mistakes to avoid if you want to invest in real estate in Spain. 

MISTAKE n°1: ignoring the legal specifics of buying real estate in Spain

Spain is divided into 17 autonomous communities, each with its own tax and administrative regulations. The application of taxes and procedures therefore differs from one region to another. 

Nor is it uncommon to find buyers underestimating the time it takes to obtain the NIE(Número de Identidad de Extranjero, insert form). This administrative formality is the number 1 step in the process of buying property in Spain, and since the pandemic, the average time taken to obtain it has increased to 45 working days, compared with 15 days before Covid. 

It's also important to understand that the notary's role in the Spanish real estate process is minimal. It is limited to authenticating signatures, and does not guarantee the legality of construction, the absence of debts or the legal conformity of the property. In 1 sentence: it is the buyer's responsibility to ensure that the property is legally compliant and in good condition. To do so, he or she needs to enlist the help of a professional. We'll come back to this later.  

MISTAKE #2: Hidden costs and poor budgeting: the classic mistake made by foreign buyers

This is a very common and... costly mistake. Ancillary costs often exceed initial forecasts, which can compromise the financial equilibrium of the project. We recommend you read our fact sheet on purchase costs (to be inserted), but here's a list of the expenses you need to take into account: 

• The purchase price, of course. 
• ITP, the Impôt unique sur les Transmissions Patrimoniales. It varies greatly from one community to another.
• Notary fees.
• Registration fees.
• VAT on new goods. 
• Bank charges. 
• Fees for a lawyer, a specialized real estate consultant or both.  

And don't forget thatbuying real estate involves long-term financial constraints: 

• IBI, the property tax.
• Tax obligations in Spain and in your country of origin, depending on the type of rental you choose. 
• Management fees. 
• Renovations and other condominium expenses. 

Terreta Spain's experts are with you from the very first phase of your real estate project in Spain. Contact our team to find out more.

 

MISTAKE No. 3: Failing to check the actual condition of the property - a costly mistake 

Visiting a property and imagining what it will be like is very pleasant, but it's pointless, and even risky, if it isn't accompanied by a precise inspection of the property. It's essential before making an offer, yet it's often botched by over-hasty or over-confident owners. Unfortunately, properties threatened by infiltration, electrical or plumbing problems are not the exception, but rather the norm in Spain.

Older properties can also be subject to a number of major legal constraints, which you should be aware of before taking the plunge. 

• Properties under historic protection (BIC) account for 14% of the old building stock and impose drastic restrictions, such as a ban on alterations to facades, the obligation to use specific materials for renovations or extended administrative deadlines for any intervention.
• Properties that have been foreclosed on by banks are very attractive financially, but they can involve a degree of risk for the buyer: unpaid community debts, the need for extensive work, etc. 
• Property under official protection (VPO), i.e. social housing or housing subject to price controls, is also closely monitored by local authorities. Their acquisition and resale are subject to precise rules. 

Terreta Spain's experts share their checklist of essential checks

• Check that the property is not subject to any special regulations. 
• Check that the property complies with living standards and request a copy of the Cédula de habitabilidad. To find out more, read our practical information sheet (to be inserted).
• Obtain the Nota simple, a sort of property identification sheet. Our practical information sheet tells you all you need to know. (to be inserted)
• It's important to check the Certificado energetico, as it will tell you whether the property is energy-efficient or needs work. 
• Ask for receipts for local tax payments, utilities and bills, so you're clear about your financial situation. 
• Check the previous deed of sale. 
• Accurately check the physical condition of the property (plumbing, condition of walls, electricity, etc.).
• Walk around the neighborhood to make sure it matches your expectations. 
• Check that the property is not illegally occupied. Okupas = 100% danger.  

MISTAKE No. 4: Buying alone without a lawyer or advisor: a risky gamble 

We do not recommend entering the Spanish real estate market alone. 

• Traditional real estate agents are paid by the seller. They are not there to advise buyers. 
• There may be a misunderstanding of international standards.
• Conflicts of interest are common. 
• Refusal of an independent inspection is not uncommon.
• The purchase price may be grossly inflated.
• Preliminary contracts (such as the arras contract, link to insert) are often offered in Spanish without translation. 

Terreta Spain offers a made-to-measure support service, covering the whole of Spain and tailored to the needs of international buyers. A kind of "real estate coaching". Our experts: 

Help you define your project (budget, type of property, ideal location).
They'll explain all the steps to follow and help you avoid mistakes.
They'll advise you on price negotiation.
They'll direct you to the right professionals (lawyer, notary, bank, diagnostician, etc.).
They will check important documents for you(Nota Simple, certificates, encumbrances, etc.) and secure your purchase. 

They can visit properties for you if you're at a distance.
They will support you after the purchase: insurance, rental management, taxation.

Get in touch with them. 

MISTAKE No. 5: Misunderstanding the key stages in the process of buying property in Spain

The process of buying property in Spain follows a precise sequence that must be mastered to avoid disappointment. We have detailed it in our practical fact sheet: "The process of buying property in Spain" (link to be inserted). 

Here is a list of the most important points to pay close attention to during the purchasing process:

• Analyze the location carefully before taking the plunge (infrastructure, shops, transport, traffic, green areas, etc.). Your Terreta Spain real estate advisor can take you on a video tour of the property and its surroundings. This saves time, money and unnecessary travel.
• Negotiating the price and conditions of purchase is strategic. Here again, the experience of a professional familiar with the local market makes all the difference. 
• Certain negotiating levers are under-used by buyers: the financing suspensive clause, which covers the risk of loan refusal, or the delivery guarantee for off-plan purchases, for example.
• The signing of the reservation contract and the payment of the deposit constitute a significant commitment that deserves redoubled vigilance. We must insist that this contract includes specific protective clauses, such as clearly defined suspensive conditions, balanced penalties for failure to meet deadlines, and a detailed, exhaustive description of the property and the services included. A recently published study by the Registradores (Spain's notaries) points out that, in 2024, almost 30% of all legal disputes concerned earnest money.
• Signing the final deed before a notary also requires a final check of all the documents and the property itself.

The advice of Terreta Spain's experts 

If you like a property and all the checks have been carried out, don't wait to make an offer. In 2025, the market is saturated with demand, but stocks of available properties are collapsing (insert 2025 buying guide link).

MISTAKE n°6: buying without anticipating rental management and tax obligations

Once you've signed the deed of sale, the property is yours. You will need to : 

1. Insure it as quickly as possible. Terreta Spain can take care of it for you. To find out more, click here (insert FP insurance link). 
2. Choosing your rental management:  

• Manage it yourself, which is free but can be time-consuming and energy-consuming.
• Delegate rental management to a specialized agency like Terreta Spain. 

3. Plan your tax obligations in Spain and in your home country. Tax rules change regularly, so it's a good idea to take professional advice. Our experts can put you in touch with experienced professionals.

GOOD PRACTICES for a successful real estate purchase in Spain

Take the time to inform yourself

Before you even plan a visit, get to know the specifics of the Spanish real estate market:

• Regional differences (taxes, procedures, planning regulations).
• Limited role of the notary.
• Importance of NIE and legal verification.

Consult specialized guides and work with local professionals.

Build a realistic budget

Remember that the advertised price is only the visible part of your investment. Take into account :

• Ancillary costs (taxes, notary, lawyer, registration).
• Any work required.
• Recurring costs (IBI, condominium fees, maintenance).
• Local taxes and those of your home country

Carefully select the professionals who work with you

A lawyer specializing in Spanish real estate law is a must.
If you want to be guided every step of the way, using a real estate advisor dedicated to foreign buyers, such as Terreta Spain, is a real asset.

Check everything, without exception

Before you sign anything, make sure you have in your hands:
Nota Simple (ownership and debts)
Cédulade habitabilidad (suitability for habitation)
Energy certificate
Receipts for taxes and charges paid
Full technical diagnosis
History of deeds of sale

Take your time to visit and evaluate

Don't be pressured into buying. Take the time to visit several properties, analyze the neighborhood, and obtain a technical report.
If you can't travel, ask your property hunter to organize detailed video visits.

Anticipate the post-purchase period

As soon as you become a homeowner, remember to :

• Take out home insurance.
• Manage the rental (if required) with a reliable local agency.
• Set up tax monitoring with an advisor who is familiar with the tax treaties between Spain and your country

In a nutshell

1️ Be well informed
2️ Surround yourself with professionals
3️Check every document
4️ Remain vigilant throughout the process
5️Anticipate in post-purchase management

With this approach, you can turn your property purchase in Spain into a great success, rather than a source of stress.

Need customized support?
Contact the experts at Terreta Spain and take advantage of our turnkey service.

Conclusion

Spanish real estate is attracting more and more foreign investors: to be among those whose project is a success, the key is to be well informed and to surround yourself with the right people.

Sources : 

Terreta Spain

Registradores de Espana

Idealista

FAQ - Mistakes to avoid when buying real estate in Spain - 2025

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

• Neglect legal preparation (NIE, Nota Simple, legal checks).
• Underestimate the overall budget (ancillary costs, local taxes).
• Visiting too quickly without carrying out a complete technical check.
• Going it alone without a local expert.
• Misunderstand key steps such as signing the deposit.

2. What are the costs in addition to the purchase price in Spain?

In addition to the price of the property, you need to think ahead:

• Transfer tax (ITP) or VAT (for new property).
• Notary and registration fees.
• Lawyer 's or real estate consultant's fees.
• Bank charges for credit.
• IBI (equivalent to Spanish property tax).

3. Why is it risky to buy without a lawyer in Spain?

In Spain, the notary's role is not the same as in France. He or she authenticates the signatures, but does not verify the legal conformity of the property, nor the absence of debts.
Only a specialized lawyer can ensure a complete verification to secure your purchase.

4. What should I check before buying a property in Spain?

The main checks are :

• Obtain the Nota Simple (property and debts).
• Check the Cédula de habitabilidad.
• Check the energy certificate.
• Inspect the general condition of the property (plumbing, electricity, structure).
• Check financial situation (local taxes and utilities paid).
• Confirm that the property is not illegally occupied(okupas).

5. Why choose Terreta Spain for your property purchase in Spain?

Terreta Spain offers comprehensive support specially designed for international buyers.

• Personalized advice on choice of property and region.
• Legal and technical checks.
• Help with negotiation and administrative management.

Post-sale support (insurance, rental management, tax).
Our aim? To secure your investment and save you time and money.