Common Mistakes Foreign Buyers Make When Purchasing in Spain

Every year, buyers from the UK fall into the same traps when purchasing in Spain: a property reserved too quickly, a legal check skipped to save time, or a budget that only covers the price on the listing. None of these mistakes are inevitable, but they are common, and most are avoidable with the right preparation before you sign anything.

Sókerim works with buyers who live outside Spain, handling searches, viewings, negotiation and the checks on a property in English, alongside coordination with your lawyer, notary and bank. This article sets out the pitfalls most often reported by British buyers in Spain, and the practical steps that keep a purchase on track.

Many buyers from the UK fall in love with a property in Spain during a short visit and move to reserve it before any proper checks have been done. A Nota Simple from the Land Registry, confirmation that the building carries no outstanding debts, and a review of its planning status are basic steps that protect you from inheriting someone else's problem.

A lawyer is not compulsory in Spain, but is usual for foreign buyers, because contracts and deeds are written in Spanish. Skipping this step to save a fee is one of the costliest mistakes we see in Spain, since problems found after signing are far harder and more expensive to unwind than ones caught beforehand.

The purchase price is only the starting point. On a resale home in Spain you will also pay transfer tax (ITP), set by the regional government, plus notary, land registry and gestoría fees; new-build homes carry VAT at 10% instead, together with stamp duty. Buyers who budget only for the headline price are often surprised by how much is added on top.

A lawyer's fee, if you use one, sits on top of these costs too. Because every region sets its own ITP rate, the figure for a home in Spain will not match what a friend paid elsewhere in Spain, so it is worth asking for a written estimate before committing funds.

Many foreign buyers choose an older property in Spain because of its character or price, without pricing in the renovation it needs. Across the projects our group has bought, renovated and resold since 2022, 18 homes in total, the renovation budget required has had a median of 22% of the purchase price, a reminder that older stock in Spain is rarely a small cosmetic job.

If the plan is a full managed investment, where you buy the property in your own name and our own renovation team carries out the work before we sell or let it for you, remember these are past figures, not a promise: returns on any project vary and are never guaranteed.

Owning a home in Spain does not end at the notary's table. Non-resident owners must file an annual Modelo 210 tax return in Spain, and if the property is rented out, that income is taxed in Spain as well as being reportable to HMRC under the double taxation agreement between Spain and the United Kingdom. A local tax adviser can confirm exactly how rental income or any future gain should be declared on each side.

Yearly costs such as IBI, the municipal property tax, and community fees where the home is part of a development, are easy to forget when budgeting from abroad. When you eventually sell, the buyer will withhold 3% of the price on account of your Spanish tax, and a separate municipal capital-gains tax (plusvalía) on the increase in land value also applies.

Buying a property in Spain does not grant any right to live in Spain. Since the United Kingdom left the EU, British citizens can stay up to 90 days in any 180-day period without a visa; longer stays require a visa or residence permit applied for in advance. The Spanish Golden Visa route for property investors ended on 3 April 2025 and is no longer available, so it should not feature in anyone's planning.

Lenders and lawyers working with UK buyers typically ask for proof of income such as a P60 and payslips, your last filed Self Assessment return, recent bank statements, evidence of existing loans or mortgage commitments, and a valid passport. Gathering these before viewing properties in Spain saves weeks later on.

Because the United Kingdom uses the pound rather than the euro, the amount you actually transfer to Spain can shift with the exchange rate between the day you agree a price and the day you complete. Buyers who leave currency conversion to the last moment sometimes find the sum available on completion day is not quite what they budgeted weeks earlier.

If the plan is to let a property in Spain to holidaymakers, check before buying whether the area or the specific building restricts tourist rentals and what regional licence is required; many areas limit or ban short lets in certain zones, and obtaining a licence after purchase is never guaranteed.

Spain is a relatively short flight away from most UK airports, making regular visits to a Spanish property straightforward for owners based in Britain. Many British buyers are drawn to Spain for its climate, coastal lifestyle and established expatriate communities. One practical point to bear in mind is that Spanish inheritance law differs from UK rules, so it is worth taking specific advice on how it may affect the property and one's estate. Currency movements between sterling and the euro can also affect the overall cost of purchase and ongoing expenses.

Spain and the United Kingdom have a double taxation agreement in place, and a local tax adviser should confirm how rental income or gains from Spanish property must be declared and reported to HMRC.

As the United Kingdom is no longer an EU member state, British citizens may stay in Spain for up to 90 days in any 180-day period without a visa, and must apply for a visa or residence permit for longer stays.

Since the United Kingdom uses the pound sterling (GBP) rather than the euro, buyers should factor in exchange-rate movements and currency conversion costs when paying for a property or transferring funds to Spain.