Common Legal Mistakes Foreigners Make When Buying in Spain
Buying property in Spain is a dream come true for many, but if you don’t understand the legal system, that dream can quickly turn into a costly nightmare. Many foreign buyers make avoidable mistakes, leading to legal headaches, unexpected costs, or even losing their investment.
At Clarante Concepts SL, we’ve seen it all—and we’re here to help you avoid the most common legal pitfalls when buying property in Spain. Let’s dive into the mistakes you must avoid and how to ensure a smooth, stress-free purchase.
Not Hiring an Independent Lawyer
Many buyers trust the seller’s lawyer or real estate agent’s legal team, which can lead to conflicts of interest.
Solution: Always hire an independent property lawyer who works for YOU and ensures the purchase is legally sound.
Tip: Your lawyer should verify ownership rights, property debts, permits, and legal compliance.
Not Checking for Outstanding Debts on the Property
In Spain, property debts (like unpaid mortgages, taxes, or utility bills) transfer to the new owner!
Solution: Request a Nota Simple (land registry report) to confirm the property is debt-free before buying.
Warning: If you skip this step, you might inherit the seller’s debts!
Signing a Contract Without Understanding It
Many contracts in Spain are only in Spanish, and some buyers sign without a proper translation.
Solution: Always get contracts translated into your native language and reviewed by your lawyer before signing.
Key Terms to Check: Deposit conditions, penalty clauses, and mortgage details.
Not Securing a NIE Number in Advance
A Número de Identificación de Extranjero (NIE) is mandatory for property purchases, but some buyers forget to get it early, delaying their purchase.
Solution: Apply for your NIE as soon as you decide to buy.
Where? At a Spanish police station, consulate, or through a legal representative.
Underestimating Additional Costs & Taxes
Buying in Spain isn’t just about the property price—you also have to budget for taxes, legal fees, and registration costs.
Typical Additional Costs:
10% VAT (for new properties) OR 6-10% Transfer Tax (for resales)
1-2% Notary & Land Registry Fees
Legal Fees (~1%)
Mortgage Setup Fees (if applicable)
Tip: Expect to pay 10-15% extra on top of the purchase price.
Buying Without Proper Planning Permission
Some buyers fall in love with rural fincas or coastal villas, only to discover later that part of the property was built without planning permission.
Solution: Your lawyer must check the property’s legal status and confirm that all extensions and renovations are properly registered.
Warning: Illegal structures can be fined or even demolished by Spanish authorities!
Rushing the Purchase Without Due Diligence
Excited buyers sometimes skip essential checks or feel pressured into buying too quickly.
Solution: Take your time, get all legal documents verified, and ensure everything is in order before making payments.
Remember: If a deal seems too good to be true, it probably is.
Ignoring the Importance of a Spanish Will
If you own property in Spain, your estate may be subject to Spanish inheritance laws, which include forced heirship rules.
Solution: Draft a Spanish will to ensure your property is passed on according to your wishes.
Tip: Without a Spanish will, your heirs may face legal complications and delays.
Not Declaring Rental Income to Spanish Authorities
If you rent out your Spanish property, you must declare the income—even if you’re a non-resident.
Solution: Register for non-resident tax and declare rental income correctly to avoid penalties.
Warning: The Spanish tax office actively monitors rental platforms like Airbnb and Booking.com.
Not Understanding Spanish Mortgage Rules
Foreign buyers can get mortgages in Spain, but many don’t understand the specific requirements and conditions.
Mortgage Basics:
Non-residents: Can borrow up to 70% of the property value.
Interest Rates: Fixed and variable rates available.
Bank Valuation Required: Determines how much the bank will lend.
Tip: Get mortgage pre-approval before house hunting to know your budget!
Final Thoughts: Buy in Spain the Right Way!
Buying a home in Spain should be an exciting and rewarding experience—not a legal nightmare. By avoiding these common mistakes and working with the right experts, you can ensure a smooth and secure purchase.
At Clarante Concepts SL, we guide foreign buyers through every step of the process, ensuring all legal aspects are handled correctly.
Thinking of buying in Spain? Let’s make your dream home a reality—safely and stress-free!
