Buyer Mistakes
Top Mistakes Buyers Make on the Costa Blanca
Avoid costly errors when buying property in Spain. Learn the common pitfalls international buyers face on the Costa Blanca and how to protect your investment.
The Costa Blanca offers everything buyers dream of—sunshine, beautiful properties, and a relaxed lifestyle. But the buying process works differently here than in the UK or northern Europe, and many international buyers learn expensive lessons the hard way.
Whether you're buying a holiday home, investment property, or permanent residence, the Spanish property market has unique rules and potential pitfalls. Understanding these before you start searching will save you money, stress, and serious legal headaches.
This guide covers the most common mistakes foreign buyers make on the Costa Blanca—and how to avoid every one of them.
Legal and Financial Pitfalls
Skipping Independent Legal Advice
The biggest mistake buyers make is not hiring their own independent lawyer. Some rely on the seller's legal team or skip professional help entirely to save money. This is false economy.
A good property lawyer checks the land registry, confirms the seller actually owns the property, verifies there are no debts attached, and ensures all planning permissions are in order. They work for you—not the seller or the estate agent.
Underestimating the True Costs
The advertised price is never the final cost. Budget an additional 10–15% for taxes and fees. Resale properties attract Property Transfer Tax (ITP) of around 10% in the Valencia region. New builds carry 10% VAT plus 1.5% stamp duty.
Add notary fees, land registry charges, and legal costs. Many buyers also forget ongoing obligations: annual property tax (IBI), non-resident income tax (even on empty properties), and potential wealth tax on higher-value homes.
Ignoring Currency Risk
Exchange rates fluctuate significantly. A €300,000 property can cost thousands more in pounds or dollars simply due to currency movements between offer and completion. Use a currency specialist and consider locking in rates early.
Property and Location Mistakes
Not Understanding Planning Issues
Spain has complex urban planning rules. Check that properties have the correct building licence, habitation certificate (Cédula de Habitabilidad), and any required tourist rental licences. Rural properties on rustic land face particularly strict regulations—some cannot legally be extended or may have illegally built structures.
Choosing the Wrong Location
Your ideal location depends on how you'll use the property. A remote hillside villa feels magical on holiday but becomes impractical for full-time retirement living. Coastal areas offer rental income potential but may feel too busy for peaceful living.
Consider seasonal differences too. Some areas become very quiet in winter while others maintain year-round activity. Visit at different times of year before committing.
Check These
Watch Out For
Overlooking Community Fees
Most apartments and many villas belong to a Community of Owners. Monthly fees can range from €50 to €500+ depending on shared amenities. More importantly, communities can impose rental restrictions, require approval for renovations, and levy special charges for major works. Always review community rules and financial accounts before buying.
Process and Investment Realities
Rushing the Purchase
Pressure tactics are common in hot markets. Buyers sign reservation contracts and pay deposits within days of viewing, then discover problems they could have avoided with proper checks.
Take time for thorough property viewings and due diligence. A genuine seller will allow reasonable time for legal checks. If someone pressures you to sign immediately, that's a warning sign.
Assuming Rental Income Is Easy
Rental income can help finance your property, but it's not automatic. Tourist rentals require a licence—and these are restricted or unavailable in many popular areas. Seasonal occupancy varies dramatically, management costs eat into profits, and regulations keep tightening.
Calculate realistic net yields after all expenses before relying on rental income to cover costs.
Forgetting the Exit Strategy
Think about selling before you buy. Some property types and locations are harder to resell than others. Unusual properties, rural locations, and areas with oversupply can sit on the market for years.
Non-residents pay 19% capital gains tax on profits when selling. The buyer also withholds 3% of the purchase price against potential tax liabilities—funds you may need to reclaim.
How to Avoid These Mistakes
Hire Independent Professionals
Engage your own lawyer and surveyor who work exclusively for you, not connected to the seller or agent.
Budget Realistically
Add 15% to the purchase price for taxes and fees, plus reserves for ongoing costs and unexpected expenses.
Do Proper Due Diligence
Verify all licences, certificates, debts, and planning compliance before signing anything.
Take Your Time
Never rush into deposits or contracts. Good properties come onto the market regularly.
Plan for the Long Term
Consider tax obligations, currency exposure, management needs, and eventual resale from the start.
Most mistakes happen because buyers don't know what they don't know. The Spanish property system isn't better or worse than others—it's simply different. With proper guidance and realistic expectations, buying on the Costa Blanca can be straightforward and rewarding.
The key is preparation. Surround yourself with trustworthy professionals, do your homework, and don't let excitement override common sense. The right property, bought correctly, will provide years of enjoyment and solid investment returns.
Ready to Buy with Confidence?
Understanding potential pitfalls is the first step to a successful purchase. Explore our comprehensive guides covering legal requirements, costs, and the complete buying process in Spain.
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