Buying a property in Spain could be one of the best investments of your life… or a constant source of legal, tax and financial problems, if you do not carry out thorough research before signing on the dotted line.
At Fuster & Associates, we have been helping domestic and international buyers purchase property in Spain for over 25 years, offering legal certainty, transparency and peace of mind. Our multidisciplinary team, specialising in property law, tax and immigration, has guided thousands of clients through the entire purchase process, thereby preventing risks that are often only noticed when it is too late.
The reality is that many buyers still make serious mistakes:
- Signing reservation contracts without a legal review.
- Paying deposits without sufficient safeguards.
- Buying property with hidden liabilities.
- Discovering planning debts after the deed has been signed.
- Paying more tax than necessary.
- Relying solely on estate agents or intermediaries without independent legal advice.
On forums for international buyers in Spain, there are countless stories of people who ran into problems because they had not carried out thorough due diligence or had not engaged specialist solicitors from the start of the process.
That is why we have drawn up this comprehensive legal checklist for buying a property in Spain to minimise risks and avoid costly mistakes.
1. Check the property’s registration status
Before signing any documents, it is essential to request a simple extract from the land registry.
This document allows you to check the following:
- Who the actual owner is.
- Whether there are any outstanding mortgages.
- Liens or legal encumbrances.
- Restrictions on use.
- Easements.
- Any planning restrictions.
One of the most common mistakes is assuming that the property is ‘unencumbered’ simply because the seller or estate agent claims it is.
In reality, many problems only come to light in the land registry.
What a specialist solicitor should check
- Whether the registered owner and the seller are the same person.
- The existence of any financial encumbrances.
- The legal status of any extensions or renovations.
- Whether the physical condition matches the details in the land registry.
At Fuster & Associates, we carry out thorough land registry checks before our clients make a deposit.
2. Check that there are no hidden debts
In Spain, certain debts may remain attached to the property even after purchase.
This includes:
- Unpaid service charge contributions.
- Arrears of property tax (IBI).
- Approved special levies.
- Debts relating to town planning.
- Unpaid utility bills.
- Administrative fines.
Essential documentation
Always ask for:
- Certificate of no outstanding debts from the owners’ association.
- Latest proofs of payment for property tax (IBI).
- Municipal certificates.
- Utility bills.
Many buyers only discover that there are financial problems weeks after signing the deed.
Legal prevention is essential here.
3. Check whether the property complies with town planning regulations
This point is particularly important for:
- Older properties.
- Detached houses.
- Homes in rural areas.
- Homes with extensions.
- Homes on the coast.
A property may appear perfectly fine at first glance, but nevertheless:
- It may have unauthorised building works.
- Lack of planning permission.
- Failure to comply with town planning regulations.
- Being subject to disciplinary proceedings.
Key town planning considerations
- Planning permission.
- First-occupancy permit.
- Age certificate.
- Compliance with town planning regulations.
- Cadastral status.
Urban planning issues are one of the most common causes of property disputes in Spain.
4. Study the reservation contract carefully
Many buyers mistakenly believe that the reservation contract is ‘merely a formality’.
It is not.
Signing a reservation contract without a legal review can lead to:
- Loss of the deposit.
- Excessive penalties.
- Disproportionate clauses.
- Obligations that are difficult to cancel.
Never hand over any money without:
- Properly identifying the recipient.
- Confirming ownership.
- Checking the refund terms.
- Setting out legal and financial conditions.
5. Check the financing before committing yourself
One of the biggest mistakes is signing contracts without a mortgage in place.
Even if the bank provisionally approves a transaction, this is no guarantee of:
- Final approval.
- The necessary valuation.
- The legal viability of the property.
Key recommendation
Always include the following:
- Mortgage clause.
- Suspensive condition relating to the financing.
- Clear approval deadlines.
This can prevent you from losing any money you have paid if the financing is ultimately rejected.
6. Calculate all taxes and costs correctly
Many buyers only calculate the sale price and forget the associated costs.
Common costs in Spain
- ITP or VAT.
- AJD.
- Notary.
- Registration.
- Legal fees.
- Administrative body.
- Valuation.
- Certified translations.
- Taxes for non-residents.
Depending on the autonomous community and the type of property, additional costs can vary from 10% to 15% of the purchase price.
At Fuster & Associates, we also advise international buyers on tax planning and tax optimisation to avoid unnecessary costs.
7. Inspect new-build properties carefully
Buying a property off-plan or a new-build property carries specific risks.
Key considerations
- Bank guarantees.
- Planning permission.
- Ten-year guarantee.
- The property developer’s financial standing.
- Actual completion dates.
- Agreed specifications.
You should never hand over money to a property developer without first checking the following:
- Statutory guarantees.
- Solvency.
- The planning status of the project.
8. Check the seller’s tax status
The following may apply to certain transactions:
- Mandatory tax deductions.
- Capital gains tax still to be paid.
- Inheritance risks.
- Taxes applicable to non-residents.
Particularly in sales involving foreign sellers, poor tax management can lead to future liabilities for the buyer.
9. Carry out an independent technical inspection
A common mistake is to assume that the property is in perfect condition, simply because it ‘appears to be well maintained’.
However, there may be:
- Structural problems.
- Hidden damp.
- Faulty installations.
- Electrical faults.
- Construction defects.
10. Engage an independent solicitor from the outset
This is probably the most important point on the entire checklist.
Many buyers rely solely on:
- The estate agent.
- The solicitor recommended by the estate agent’s agency.
- The seller’s adviser.
But their interests do not always align with those of the buyer.
What a specialist property solicitor should do
- Check all documentation.
- Identify hidden risks.
- Negotiate clauses.
- Handle tax matters and notarial services.
- Check that town planning regulations are being complied with.
- Protect your money.
- Oversee the final signing.
At Fuster & Associates, we work according to the principles of transparency, legal accuracy and comprehensive buyer protection, and we offer personalised legal assistance throughout the entire property purchase process in Spain.
Buying in Spain with confidence is possible
Spain remains one of the most attractive destinations for property investment, both for residents and international buyers.
However, a poorly managed property transaction can lead to:
- Significant financial losses.
- Planning issues.
- Legal disputes.
- Registration obstacles.
- Unnecessary tax risks.
The best investment before purchasing a property is not only choosing the right property, but also ensuring that the entire legal process is properly managed.
At Fuster & Associates, we help our clients buy property in Spain with complete legal certainty, guiding them from the initial reservation right through to signing at the notary’s office and the final registration of the property.
Contact us today to receive bespoke legal advice on the purchase of your property in Spain and to ensure that every stage of the transaction is handled with the utmost legal certainty, transparency and peace of mind.
We want to help you navigate all the legal complexities involved in buying a property in Spain, but this article contains legal information and should not be regarded as legal advice.
- View more post about: Purchase Conveyancing
