The 5 most common mistakes when buying property in Spain (and how to avoid them)

Buying property in Spain, especially along the Costa del Sol, is an exciting opportunity — but it can also be a minefield for those unfamiliar with the local market. Whether you’re investing in Marbella, Estepona, or Benahavís, avoiding common mistakes is key to protecting your investment and ensuring a smooth purchase.

Property buying

1. Skipping Professional Legal Advice

Many buyers underestimate the importance of hiring a Spanish lawyer specialized in real estate. Without proper legal guidance:

• You might overlook property encumbrances or debts.

• Contracts could contain clauses unfavorable to foreign buyers.

• Understanding tax obligations becomes complicated.

  
  

How to avoid it: Always hire a trusted lawyer who can review contracts, check the property registry, and explain taxes and fees.

2. Not Checking the Property’s Licensing and Compliance

Especially for apartments in coastal areas, it’s crucial to verify:

• If the property has all necessary licenses (construction, habitation, tourist rental).

• Compliance with local urban planning and community rules.

• Any pending fines or debts with the community or town hall.

  
  

Tip: Ask your lawyer or agent to provide a full certificado de dominio y cargas before signing any agreement.

3. Ignoring Additional Costs

The purchase price is only the beginning. Buyers often forget about:

• Taxes: Property Transfer Tax (ITP), VAT if buying new, and AJD (Stamp Duty).

• Notary fees and registration costs.

• Community fees and ongoing maintenance.

  
  

Pro tip: Budget around 10–12% extra on top of the purchase price for all additional costs.

4. Focusing Only on Price and Location

While location is important, overlooking other factors can backfire:

• Condition of the building and apartment.

• Orientation, natural light, and privacy.

• Potential for future resale value and market demand.

  
  

Advice: Make a checklist of must-haves and nice-to-haves, and consider long-term value over just the lowest price.

5. Not Understanding Rental Potential (if Buying as an Investment)

For those purchasing properties for short-term rental, common mistakes include:

• Not checking local rental regulations and tourist license requirements.

• Overestimating rental income based on anecdotal listings.

• Ignoring seasonal demand fluctuations.

  
  

Solution: Research rental yields, occupancy rates, and legal requirements, or work with a property management agency that specializes in short-term rentals.

Buying property in Spain can be highly rewarding, but avoiding these five mistakes is essential to protect your investment and enjoy your new home or rental income.

If you’re planning to buy in Marbella, Estepona, or Benahavís, working with experienced agents and legal experts ensures a smooth process and maximum return.

Contact Ela Homes today for personalized guidance and exclusive property listings.