Common mistakes when buying a property in Spain as a foreigner (and how to avoid them)

Avoiding surprises when buying your home on the Costa Blanca

Buying a property abroad is a major milestone, combining excitement with navigating a completely new administrative system. Every year, Torrevieja and the Costa Blanca draw buyers from across the globe, thanks to their wonderful climate and exceptional quality of life. In fact, more than half of Torrevieja's residents are expats representing over 100 different nationalities.

However, unfamiliarity with the Spanish administrative and legal systems can lead to costly mistakes. To avoid the typical pitfalls that foreign buyers encounter due to a lack of local experience, it is essential to understand local regulations and carefully plan every step.

Mistake 1: Failing to calculate the total acquisition costs

Many buyers focus solely on the advertised asking price of the property. However, in Spain, there are additional costs that must be budgeted for from the very beginning to avoid any last-minute financial strain.

As a general rule of thumb, you should allow for an additional 10-13% on top of the purchase price. This percentage covers the following:

• Property Transfer Tax (ITP) for resale properties, or VAT (IVA) for new builds.
• Notary fees for signing the title deed.
• Land Registry registration fees.
• Administrative and legal expenses associated with managing the purchase.

Mistake 2: Not understanding the timeline and purpose of preliminary contracts

The buying process in Spain is typically structured into several stages before reaching the final signing before a notary. Skipping steps or signing documents without fully understanding them is an unnecessary risk.

• The reservation contract: This temporarily takes the property off the market and usually requires a deposit of between 3,000 and 6,000 €.
• The earnest money contract (contrato de arras): This is a legally binding document that sets out the final terms and penalties for breach of contract. At this stage, a deposit of 10% of the purchase price is typically paid.

To ensure these contracts fully protect your interests and to resolve any legal or tax queries, we always refer our clients to our trusted partner law firm, who specialise in Spanish property law.

Mistake 3: Failing to secure essential documents in advance

To complete any property transaction or set up basic utility services in Spain, international buyers must obtain a Foreigner Identification Number (NIE). Delaying this administrative step can put your entire purchase on hold.

There are several ways to obtain your NIE:

• Applying in person while in Spain.
• Applying through the Spanish consulate in your home country.
• Authorising a representative in Spain to handle the process on your behalf via a power of attorney.

The official form required is the EX-15, and it requires paying a fee using form 790, which costs around 10 €.

Mistake 4: Arranging finance without comparing local options

If you require a mortgage to purchase your home in Torrevieja, the terms and conditions for non-resident buyers often differ from those applied to tax residents. Failing to research Spanish banking alternatives in advance is a very common pitfall.

At Embassy My Home, our role is to guide you through this phase, offering objective advice and helping you compare different offers from Spanish financial institutions so you can make an informed decision with complete clarity.

Mistake 5: Going it alone without an established local professional team

Trying to coordinate viewings, check the property registry for outstanding debts, and negotiate with sellers without speaking the language or knowing local regulations often leads to immense stress and delays.

At Embassy My Home, we have over 25 years of experience on the Costa Blanca. Our multilingual team fully understands the unique needs of international buyers and knows every corner of Torrevieja in detail. We take care of verifying each property and coordinating the entire process, ensuring your buying experience is safe, smooth, and transparent.

If you are planning your next property purchase in Torrevieja or have any questions about the buying process, please feel free to message us directly on WhatsApp. We would be delighted to chat about your plans and provide the peace of mind you deserve.