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Common Buying Mistakes

Buying property in Spain is straightforward when you know what to watch out for. These are the most common mistakes buyers make — and how to avoid them.

8 key mistakes to avoid Practical tips for each Protect your investment

Common Buying Mistakes to Avoid

Avoid costly mistakes when buying property in Spain. Learn about rushing decisions, skipping legal checks, underestimating costs, and more.

Rushing decisions
Skipping legal checks
Underestimating costs
Wrong location

Mistake #1: Rushing the Decision

The excitement of finding a property in sunny Spain can lead to hasty decisions. Many buyers fall in love with the first property they see and rush to make an offer without proper due diligence.

Why Rushing Hurts
You may miss better properties that come on the market
Emotional decisions often lead to buyer's remorse
You lose negotiating power when you appear desperate
Important issues get overlooked in the rush
You may pay more than market value

<strong>The solution:</strong> Take your time. Visit multiple properties, compare options, and sleep on major decisions. A good property will still be there tomorrow.

Mistake #2: Not Using an Independent Lawyer

Some buyers try to save money by not hiring a lawyer, or they use the seller's lawyer. This is one of the biggest mistakes you can make.

Why You Need Your Own Lawyer
The seller's lawyer represents the seller's interests, not yours
Legal checks can uncover hidden debts on the property
Building permits and planning issues need verification
Your lawyer ensures the contract protects your interests
They handle NIE applications and tax matters

<strong>The solution:</strong> Always hire an independent, English-speaking lawyer who specializes in Spanish property law. Budget €1,500-3,000 for legal fees — it's money well spent.

Legal Requirements Everything you need to know about legal checks

Mistake #3: Underestimating Total Costs

Many buyers focus only on the purchase price and are surprised by the additional costs involved in buying property in Spain.

Costs Beyond the Purchase Price
Transfer tax (ITP) or VAT: 8-10% for resale, 10% + 1.5% AJD for new builds
Notary fees: €800-1,500
Land registry: €400-800
Legal fees: €1,500-3,000
Mortgage arrangement fees if applicable
Connection fees for utilities

<strong>The solution:</strong> Budget 12-15% on top of the purchase price for all buying costs. Use our calculator to get an accurate estimate.

Costs & Taxes Complete breakdown of buying costs

Mistake #4: Choosing the Wrong Location

A property might look perfect online, but the location can make or break your investment. What seems like a quiet area might be noisy in summer, or a 'sea view' might disappear when new buildings go up.

Location Red Flags
Visiting only in low season (summer crowds can be overwhelming)
Not checking for nearby construction plans
Ignoring distance to amenities, airports, and hospitals
Not considering rental potential if that's your goal
Underestimating travel time from the airport

<strong>The solution:</strong> Visit at different times of year. Talk to locals and expats. Check the town hall for planned developments. Spend time in the area before committing.

Mistake #5: Leaving the NIE Too Late

The NIE (Número de Identificación de Extranjero) is required for almost everything in Spain — opening a bank account, signing contracts, paying taxes. Many buyers don't realize how long it can take to obtain.

NIE Timeline Issues
Processing can take 2-8 weeks depending on the region
Appointments at police stations are often booked weeks ahead
Without an NIE, you cannot complete the purchase
Bank accounts require an NIE to open
Delays can cause you to lose a property

<strong>The solution:</strong> Apply for your NIE as soon as you're serious about buying. Your lawyer can often handle this for you with a power of attorney.

Mistake #6: Skipping the Property Survey

Unlike in the UK, property surveys are not standard in Spain. Many buyers skip this step to save money, only to discover expensive problems after completion.

Issues a Survey Can Reveal
Structural problems and subsidence
Damp and humidity issues
Electrical and plumbing problems
Roof condition and potential leaks
Illegal extensions or modifications

<strong>The solution:</strong> Hire a qualified surveyor, especially for older properties. A survey costs €300-600 but can save you thousands in unexpected repairs.

Mistake #7: Ignoring Community Fees

If you're buying an apartment or property in an urbanization, community fees (gastos de comunidad) are a significant ongoing cost that many buyers overlook.

Community Fee Pitfalls
Fees can range from €50 to €500+ per month
Previous owners may have unpaid debts (which transfer to you)
Special assessments for major repairs can be costly
Some communities have strict rules about rentals
Poor management can lead to declining property values

<strong>The solution:</strong> Request the last 3 years of community accounts and minutes. Check for any planned major works or outstanding debts. Your lawyer should verify there are no unpaid fees.

Mistake #8: Poor Currency Exchange Planning

If you're buying in euros but earning in another currency, exchange rate fluctuations can significantly impact your purchase. Many buyers lose thousands by not planning their currency transfers properly.

Currency Mistakes
Using your bank's exchange rate (typically 3-4% worse than market)
Not locking in rates when favorable
Transferring all funds at once instead of averaging
Ignoring transfer fees
Leaving currency planning to the last minute

<strong>The solution:</strong> Use a specialist currency broker who can offer better rates and forward contracts. On a €300,000 purchase, this can save €5,000-10,000.

Ready to Buy the Right Way? First-Time Buyer Guide