Common Mistakes International Buyers Make When Purchasing Property in Spain — and How to Avoid Them
International buyers of Spanish property regularly make the same mistakes, despite the wealth of professional advice available. The mistakes range from procedural (failing to obtain the NIE early, accepting the seller’s lawyer instead of an independent one) to substantive (undervaluing the property in the deed, ignoring community restrictions on tourist rental, failing to make a Spanish will). Some mistakes are easily corrected; others have permanent consequences. This article identifies the ten most common mistakes that affect international buyers in our experience, explains the consequences of each, and provides the practical strategies to avoid them. A dedicated independent real estate lawyer is the single most important safeguard against the great majority of these mistakes.
Mistake 1: Not engaging an independent lawyer
The most common mistake is failing to engage an independent lawyer. Many buyers rely on the lawyer recommended by the seller, the developer, or the real estate agent — typically a lawyer who has a continuing professional relationship with the recommending party and whose loyalty may be divided. An independent lawyer is engaged by and acts exclusively for the buyer, with no conflict of interest.
The cost of an independent lawyer is modest (typically 1-1.5% of the purchase price) and the benefit is substantial. The independent lawyer conducts proper due diligence, identifies issues that an interested party might overlook, and represents the buyer’s interests in the negotiation. The buyer who saves on legal fees by using the seller’s lawyer typically pays many times more in subsequent problems. The detailed reasons are in our guide to why you need an independent lawyer.
Mistake 2: Starting the NIE application too late
Starting the NIE application late is the most common cause of delays in international purchases. The NIE is required for the public deed, but the application can take 8-12 weeks through consular routes. Buyers who start the application after signing the option contract may find that the NIE is not ready by the planned closing date.
The mitigation is to start the NIE application at the very beginning of the purchase process, typically through the lawyer-delegated route which is faster and more reliable. The 2-4 weeks for the lawyer-delegated route can be accommodated within most purchase timelines. The cost of the lawyer-delegated route is modest (€200-€400) and the certainty of the delivery date is well worth it.
Mistake 3: Skipping or rushing the due diligence
Some buyers, eager to secure a property in a competitive market, skip or rush the due diligence. The reservation deposit is paid, the option contract is signed, and the public deed is approached without a thorough review of the title, the urban-planning status, the community status, and the debts. Issues discovered after the purchase (undisclosed mortgages, urban-planning irregularities, restrictive community statutes) are then much harder and more expensive to address.
The mitigation is to insist on a proper due diligence period (typically 2-4 weeks) between the reservation contract and the option contract, with the lawyer’s written report identifying any issues. The buyer can then make an informed decision about whether to proceed and on what terms. The 2-4 weeks of due diligence is the buyer’s best insurance against post-purchase surprises.
Mistake 4: Undervaluing the property in the deed
The temptation to undervalue the property in the public deed (to reduce ITP) is significant but the strategy is largely ineffective and creates problems. The regional reference value system means that the tax cannot fall below a defined floor regardless of the declared price. The undervaluation also reduces the acquisition value for the future capital gain calculation, increasing the capital gains tax on a later sale.
The mitigation is to declare the actual price paid. The bank transfers from the buyer to the seller should match the declared price. Any discrepancy between the declared price and the actual price is a red flag that can attract tax authority scrutiny within 4 years. The professional advice is consistent: declare the real price.
Mistake 5: Ignoring community restrictions on tourist rental
Buyers planning to use the property as a tourist rental sometimes ignore the community statutes and the recent community decisions. A property with a tourist licence may still be subject to a community prohibition on tourist rental, particularly under the post-April 2025 regime that requires community authorisation. The buyer who proceeds without verifying the community position may find that the licence is unusable. The interaction between community and tourist licence is covered in our partner-site article on community prohibition of tourist licences.
The mitigation is to verify the community position before the purchase: review the statutes for any restriction, request the certification of recent acuerdos, and confirm whether community authorisation is required and available. If the community position is restrictive or uncertain, the buyer should reconsider whether the property is suitable for the intended use.
Mistake 6: Failing to make a Spanish will
Many international buyers do not make a Spanish will at the time of the purchase, leaving the disposition of the Spanish property to the default rules under EU Regulation 650/2012. For buyers who become habitually resident in Spain (typically those who eventually retire to their Spanish property), the default rule applies Spanish forced-heir rules to the entire estate, which is rarely what the testator would have wanted.
The mitigation is to make a Spanish will at the time of the purchase or shortly afterwards, choosing the law of the buyer’s nationality. The cost is modest (€60-€120 for a notarial fee) and the protection is substantial. The Spanish will only deals with Spanish assets and does not interfere with any existing will in the buyer’s home country. The detailed mechanics are in our partner-site article on making a Spanish will.
Mistake 7: Choosing the wrong ownership structure
The choice of ownership structure (personal ownership, company ownership in Spain, company ownership abroad) has significant tax and succession implications. Many buyers default to personal ownership without considering whether a company structure might be more efficient for their circumstances. The wrong choice can result in higher ongoing tax, more complex compliance, and difficulties at succession.
The mitigation is to discuss the ownership structure with a Spanish lawyer and a tax adviser at the start of the purchase planning, considering the buyer’s nationality, residence, expected use of the property, and long-term plans. For most personal-use buyers, personal ownership is the appropriate choice. For investment buyers with multiple properties or for high-net-worth buyers, a company structure may be preferable.
Mistake 8: Inadequate budgeting for closing costs
The total cost of a Spanish property purchase includes the price, the ITP (7-10% depending on the region), the notary fees, the registry fees, the lawyer fees, the mortgage-related costs (if any), and the various incidental costs. The total of all closing costs is typically 10-15% of the purchase price. Buyers who budget only for the purchase price find themselves short of funds at closing.
The mitigation is to budget for total closing costs of 12-15% of the purchase price (higher if mortgage finance is used). The lawyer provides a detailed estimate of all costs at the start of the engagement, and the buyer should ensure that the funds are available in the appropriate accounts (Spanish bank for ITP and notary; lawyer’s client account for the lawyer’s fees; bank account for the price).
Mistake 9: Not understanding ongoing ownership obligations
Spanish property ownership comes with ongoing obligations: annual IBI (municipal property tax); annual IRNR (non-resident income tax) for non-residents; community fees; utility costs; in some cases, wealth tax. Buyers who do not understand these obligations may fail to comply, accruing penalties and interest.
The mitigation is to have the lawyer or a Spanish accountant set up the ongoing administrative arrangements at the time of the purchase: bank account for direct debits, fiscal address for tax notifications, annual filing of IRNR. Many lawyers offer continuing administrative services for non-resident owners. The cost is modest and ensures that the owner remains in good standing with the Spanish administration.
Mistake 10: Buying without seeing the property in person
Some international buyers, particularly during the COVID era, made purchases based only on virtual tours and online viewings. The property may look very different in person, the neighbourhood may have characteristics not visible in photographs, the condition may be worse than expected. Buying without an in-person visit is a significant risk.
The mitigation is to visit the property in person before signing any binding contract. The reservation contract can be signed remotely with appropriate protection (refundable deposit if the buyer is dissatisfied after the in-person visit), but the option contract should only be signed after a thorough in-person inspection. The trip cost is modest in relation to the value of the purchase and is the best insurance against buying the wrong property.
Action steps to avoid these mistakes
First: engage an independent Spanish real estate lawyer at the very start of the purchase process. Second: start the NIE application early, ideally through the lawyer-delegated route. Third: insist on proper due diligence with a written report. Fourth: declare the actual price in the public deed. Fifth: verify community restrictions before any tourist-use purchase. Sixth: make a Spanish will at the time of the purchase. Seventh: discuss the ownership structure with professional advisers. Eighth: budget realistically for all closing costs. Ninth: arrange the ongoing administration through the lawyer. Tenth: visit the property in person before any binding commitment. For a full consultation, contact our team.
The common mistakes by international buyers are well-known and entirely avoidable with proper professional guidance. The investment in qualified independent advice is the best protection against the mistakes that can affect any buyer who proceeds without it. The cost of the lawyer is a small fraction of the cost of the mistakes the lawyer prevents.