Five Major Mistakes to Avoid When Buying Property in Spain
Buying a new home in Spain might be the best thing you ever do. Most buyers say the only regret they have is that they hadn’t done it sooner. But they also mention how much research they did beforehand, and that really is the key to a great experience. Here we pick out five key things to consider.
1. Not using a lawyer
From buying property that has illegal alterations (not unusual in rural Spain) to one that comes with restrictions you are not aware of, using a lawyer can save you costly mistakes, or even a complete disaster. Whatever you are told, the role of the notary is not the same as an independent lawyer who is representing your interests and should investigate all the potential issues of a property in their due diligence. This is especially key when you don’t speak the language and are buying in a country that is not your own.
2. Under-estimating costs
Spanish buying costs are higher than in many other countries so be aware that you need to budget 10-14 per cent of the purchase price for taxes, legal and admin costs. Don’t also buy without knowing your running costs, especially community fees which can vary a lot between developments. Finally, and this is especially key since construction and labour costs increased post pandemic, don’t under-estimate the cost of renovation if this is a key part of your plan.
3. Buying in the wrong location
Avid watchers of A Place in the Sun will note how often buyers think they know where they want to buy but end up pivoting to somewhere ‘with more life’ or closer to a town. The key to finding the right place is visiting it at different times of year – and ideally staying there to get a feel for it. Key things to consider are public transport, distance from airport(s), how Spanish (or Anglo-centric) it is, whether the local amenities stay open in winter.
4. Not keeping it legal
You may still be offered by a vendor the opportunity to pay for a portion of the sales price in cash (‘black money’) so you can under-declare it. This may save tax for both vendor and buyer, but it is illegal. It may lead to legal complications when selling and paying higher capital gains tax. If you are unaware of Spanish legal and tax obligations you may also unwittingly fail to stay within the law – another key reason to use a good lawyer and perhaps also a tax advisor/accountant.
5. Failing to future-proof
It’s expensive to buy and sell a home in Spain, so if you are planning on a holiday home that will eventually become a retirement property, make sure it will still suit. Does it have a downstairs bedroom/bathroom? Will it be large enough for full-time living? Thinking ahead also goes for the location: how far are those amenities that will become more important in a decade? Will it be a practical place to live if you stop driving?
search for properties IN SPAIN
Read more:
- Buying a Spanish Property - How Much Does It Actually Cost?
- Number of foreign buyers in Spain higher than before the pandemic
- The Pros and Cons of the Spanish Non-Lucrative Visa
