Pitfalls when buying a house in Spain: what to look out for?

Buying a house in Spain often starts with a feeling: sun, tranquility, a terrace with a view. That feeling is valuable, but it is not a purchase contract. The Spanish buying process works differently than in Belgium or the Netherlands, and that is precisely where things sometimes go wrong. We guide Belgians and Dutch people through their purchases on the Costa Blanca and see the same pitfalls recurring time and again. Below, we list them, along with concrete steps you can take to address them.

1. You only calculate with the asking price

The asking price is not what you ultimately pay. For an existing home, you pay property transfer tax (ITP). In the Comunitat Valenciana, which includes the Costa Blanca, this has been 9 percent since June 1, 2026, and 11 percent above €1 million ( Taxdown, 2026 ). For new builds, you pay 10 percent VAT (IVA) plus stamp duty (AJD). On top of that come the notary, land registry, lawyer, and possibly a gestor, an administrative service provider who handles your paperwork. Roughly count on 11 to 14 percent on top of the purchase price; your exact amount depends on the region, price, and mortgage.

And the costs do not stop with the handover of the keys. Consider the annual property tax (IBI), the contribution to the homeowners' association (comunidad), and the Spanish non-resident tax.

2. Debts that come with the home

In Spain, debts can be tied to the property rather than the seller. An outstanding mortgage, unpaid property tax (IBI), or arrears in community contributions could become your problem after the purchase. Therefore, have a current Nota Simple requested from the Land Registry (Registro de la Propiedad). This extract shows who the owner is and what encumbrances rest on the property. Additionally, request a statement from the community confirming that there are no arrears.

3. What you see is not always what is recorded

An enclosed terrace, an extra bedroom, or a swimming pool: not everything you view is legally documented. If the Land Registry (Catastro), the Property Register, and reality do not match, this can cause problems with your mortgage, your insurance, or a subsequent sale. Have your lawyer check whether extensions are permitted and whether the property has the correct habitability papers.

4. Signing too quickly after a pleasant viewing

After a great viewing, you don't want to part with the property. Yet, you only sign once you know the full terms. Usually, a reservation contract is followed by a purchase agreement (contrato de arras) with a down payment of around 10 percent. If you subsequently withdraw from the purchase, you generally lose that amount. If the seller backs out, they usually pay back double the amount. Have the terms checked beforehand, especially regarding what happens if your mortgage falls through.

5. Buying a new-build without checking warranties

With new construction, you often pay in installments during the construction phase. Ensure that every payment is covered by a bank guarantee or insurance in your name, so that you get your money back if the project is not completed. After completion, statutory warranties of 1, 3, and 10 years apply. The latter is the Seguro Decenal, insurance for structural defects. Ask about it before you sign, not afterwards.

6. No own, independent lawyer

The Spanish notary primarily checks whether the deed (escritura) is legally sound, not whether the purchase is favorable to you. Therefore, having your own lawyer who represents only your interests is not a luxury. Choose someone who speaks your language or works with a translator so that you know what you are signing. If you grant a power of attorney (poder notarial), have it explained exactly what that person is authorized to do on your behalf.

7. Shopping based on a holiday feeling

A complex in August is different from one in January. Visit the neighborhood outside the season as well, check the distance to shops and a hospital, and pay attention to the orientation of your terrace. Do you want to rent it out? Since April 3, 2025, for new tourist rentals in an apartment complex, you need the express permission of three-fifths of the owners ( OCU, 2025 ). In addition, regional and municipal regulations apply. Check this before your purchase, especially if renting out is necessary to make your investment financially viable.

This is how you shop without surprises

You can avoid almost every pitfall mentioned above with good preparation and the right people around you. Arrange your NIE (your Spanish tax identification number) and a Spanish bank account on time, request a customized cost overview in advance, and do not sign anything before your lawyer has reviewed it.

At Palmhouses, you have a single point of contact, from the first video call until after the key handover. Our Dutch-speaking team made the move to Spain themselves and knows where potential issues can arise. No fine print and no ambiguities. Are you already looking around? View apartments on the Costa Blanca, villas on the Costa Blanca, or houses in Torrevieja.

Unsure where to start? Schedule a no-obligation video call. We are happy to help you brainstorm.