7 Pitfalls of Buying Property in Spain

7 Pitfalls of Buying Property in Spain

A British couple buying near La Cala de Mijas thought they had their property budget completely organised. Then the full purchase figures arrived.

Once tax, legal fees, notary costs and Land Registry charges were added, they discovered that they needed almost €30,000 more than expected.

Hayes Homes has published their experience because it illustrates one of the biggest risks facing overseas purchasers on the Costa del Sol. The property itself may be right, but problems with budgeting, legal checks, planning, community obligations, financing or ownership structure can turn a straightforward purchase into an expensive complication.

Hayes Homes has worked with overseas property buyers from its base in La Cala de Mijas since 2007, with a particular focus on the Costa del Sol between Benalmádena and Estepona.

Rather than treating every Spanish property market as identical, this guide focuses on the pitfalls buyers encounter when considering homes in Mijas, La Cala de Mijas, Marbella and surrounding Costa del Sol locations.

1. Treating the Estate Agent as a Substitute for an Independent Lawyer

Your estate agent and your lawyer perform different jobs.

A good local agent can help you compare locations, identify suitable homes, organise viewings, negotiate with sellers and keep the estate agency side of the purchase moving.

An independent Spanish lawyer should protect your legal interests.

Before you become committed to a property, your lawyer may need to check:

• Who legally owns the property.
• Whether mortgages or other registered charges exist.
• Whether community debts remain outstanding.
• Whether the property matches Land Registry information.
• Whether extensions or alterations have the required legal status.
• The purchase contract and reservation documentation.
• The documentation required for completion.

Hayes Homes specific support: Hayes Homes states that it can introduce international purchasers to trusted independent lawyers and financial professionals. The buyer remains responsible for choosing and appointing the adviser who represents them.

This matters because Hayes Homes is an estate agency, not a law firm. Greig and the team can coordinate the property search and communication, but legal due diligence should remain independent.

Hayes Homes also publishes feedback from a buyer named Christina who worked directly with Greig Hayes while purchasing property abroad. She specifically praised the practical guidance and availability she received throughout the process.

"He was always available to answer questions, provided honest and practical advice."

Christina, Hayes Homes client

Hayes Homes does not publish Christina's property type, nationality or private legal file, so those details should not be added. What her feedback does provide is genuine named evidence of the guidance she received during an overseas purchase.

If you need an independent lawyer before reserving a Costa del Sol property, ask Hayes Homes about suitable professional introductions.

2. Budgeting for the Property Price Instead of the Total Purchase

This is one of the clearest pitfalls Hayes Homes has documented through an actual buyer experience.

A British couple buying near La Cala de Mijas believed that the financial side of their purchase was already prepared. When all of the acquisition costs were calculated, they required almost €30,000 more than expected.

Their mistake was not choosing the wrong property. It was treating the advertised property price as the complete budget.

Hayes Homes now encourages buyers to establish the total amount available for the transaction before building their final viewing list.

For a resale property in Andalucía, the current general Property Transfer Tax rate is 7%. Qualifying reduced rates exist in specific circumstances, so the rate applicable to an individual purchase should be confirmed by an independent adviser.

A qualifying first delivery of a new residential property by a developer is generally subject to 10% VAT. The corresponding deed can also be subject to the applicable Andalucía Stamp Duty, whose current general rate is 1.2%.

For official tax confirmation, buyers can check the Junta de Andalucía property transfer tax guidance.

A live Hayes Homes example makes the difference much clearer.

A five bedroom property in La Cala de Mijas, reference R5357926, has been marketed by Hayes Homes at €875,000.

The same property information gives an estimated total buyer cost of approximately €962,500.

That is €87,500 above the advertised property price.

The disclosure is expressly indicative because the final cost depends on the buyer and transaction, but it gives purchasers a far more realistic planning figure than the asking price alone.

See Hayes Homes' real Costa del Sol purchase cost examples.

3. Failing to Check Planning, Registry and Property Documentation

Legal ownership of a property and the physical building standing on the land are not always exactly the same thing.

Extensions, terraces, pools, converted storage areas and additional buildings may require investigation before purchase.

Your lawyer should obtain the relevant Land Registry information and establish whether the property being sold corresponds with the official documentation.

This is especially important when considering rural properties and fincas in Mijas.

For example, Hayes Homes currently markets a four bedroom finca in Mijas, reference R5465446. The property includes a main residence, swimming pool, storage areas, stables, a private well and substantial land.

Nothing in the listing suggests that those features are unlawful. The point is exactly the opposite: a property with several structures and rural land gives the buyer more physical elements that should be matched against the legal and technical documentation before completion.

That is why rural properties should not be assessed only by walking around the house with an estate agent.

Your independent adviser should determine which planning and registry documents need to be checked for the specific property and municipality.

The same principle applies to Marbella villas, La Cala apartments and new developments. The documents required will depend on the property, its age, its history and any alterations carried out over time.

Considering a property with extensions, rural land or unusual features? Speak to Hayes Homes before reserving it so the appropriate independent checks can be organised.

Call +34 951 870 210 or request a call from the Hayes Homes team.

4. Ignoring Community Fees, IBI and the Cost of Owning the Property

Purchase costs are only part of the financial picture.

If you buy an apartment, townhouse or villa inside a residential community, you may also have ongoing community fees covering services such as:

• Communal gardens.
• Swimming pools.
• Lifts.
• Security.
• Lighting.
• Cleaning.
• Building maintenance.
• Shared leisure facilities.

There is no useful single Costa del Sol community fee figure because the level of facilities varies enormously.

A current Hayes Homes apartment in La Cala de Mijas, for example, includes communal gardens, a communal pool, indoor pool, heated pool, gym, sauna, security and other shared facilities.

A buyer considering this type of property should therefore obtain the actual community budget and fee certificate rather than assume that costs will be similar to a simpler apartment building nearby.

Hayes Homes listings also demonstrate how annual local charges can differ from one property to another.

One current Costa del Sol apartment marketed by Hayes Homes publishes:

• IBI: €216 per year.
• Community fee: €32.23 per month.
• Waste collection charge: €221.25 per year where the stated tourist licence conditions apply.

These are property specific figures, not standard rates for Mijas, Marbella or the entire Costa del Sol.

Before buying, ask for:

• The latest IBI receipt.
• The current community fee.
• Confirmation that community payments are up to date.
• Minutes of recent community meetings where appropriate.
• Details of any approved or proposed extraordinary contributions.

This matters particularly when comparing a simple apartment with a gated community offering pools, security, gyms and extensive landscaping.

You can browse current Mijas properties and compare actual facilities rather than relying on a generic community cost estimate.

5. Buying Without an Independent Technical Inspection

The legal checks carried out by a lawyer are not the same as inspecting the physical condition of the building.

A property can have clear title and still require expensive work.

Depending on the age and construction of the home, potential issues can include:

• Damp or water ingress.
• Roof problems.
• Drainage issues.
• Electrical installations requiring updating.
• Pool equipment problems.
• Air conditioning or heating faults.
• Cracking requiring professional assessment.
• Problems with retaining walls or external structures.

This becomes increasingly important with larger villas and rural properties.

The current Hayes Homes Mijas finca reference R5465446, for example, includes a swimming pool, stables, storage areas, a well and substantial grounds.

Those features add character, but they also demonstrate why a technical inspection of a complex property can involve much more than checking the main living room and bedrooms.

At the other end of the market, Greig Hayes personally presents Tree Villas at La Cala Golf, a collection of only three substantial new villas in Mijas. One is complete, while other homes form part of the wider development programme.

For a new villa, the inspection focus may be different from an older finca, but buyers should still understand completion documentation, construction quality, systems and any outstanding items before taking possession.

Hayes Homes does not publicly publish a named buyer case in which a survey discovered a structural defect, so this guide does not invent one.

The practical recommendation is straightforward: where the property warrants it, commission an appropriate independent technical inspection before you become fully committed.

Need help assessing a villa, finca or older Costa del Sol property before making a decision?

Call Hayes Homes on +34 951 870 210 or send the team the property you are considering.

6. Leaving Currency and Finance Until After You Find the Property

For British buyers, the amount available in euros can change even when the sterling budget has not.

If a large part of your purchase funds remains in pounds, exchange rate movements between reservation and completion can affect the final amount required.

This is one area where Hayes Homes has a clear provider specific service rather than simply offering generic advice.

Hayes Homes has a dedicated relationship with Moneycorp for foreign exchange and international payment requirements.

The Hayes Homes Moneycorp service includes access to currency specialists and options such as:

• International transfers.
• Rate monitoring.
• Forward contracts.
• Currency risk management.
• Support with larger property related payments.

If your buying budget is being converted from sterling, discuss the currency strategy before fixing the upper limit of your property search.

The same principle applies to mortgages.

Do not assume that a lender will approve the amount you need simply because the property itself appears affordable.

Finance criteria vary by lender, residency status, income, property type and valuation.

Buyers who require finance should establish their likely borrowing position before committing to a reservation agreement.

This is particularly important when comparing Costa del Sol new developments, where payment stages and completion dates can differ considerably from a conventional resale purchase.

7. Ignoring Tax, Ownership and Inheritance Planning Until After Completion

How you own a Costa del Sol property can matter long after the purchase itself has completed.

British buyers should consider ownership structure, wills, succession planning and ongoing Spanish tax obligations before assuming that UK rules will automatically apply in the same way.

Succession law is particularly important to understand correctly.

Under the European Succession Regulation, the law of the country where a person was habitually resident at death will generally govern the succession unless the circumstances or a valid choice of law lead to a different result.

The Regulation also allows a person to choose the law of a country whose nationality they hold to govern their succession, provided that choice is made appropriately in a testamentary disposition.

Read the European Succession Regulation.

This is more nuanced than saying every British owner is automatically subject to Spanish forced heirship rules or that simply owning Spanish property determines the succession law.

That is why individual legal advice matters.

You should also establish what ongoing tax filings apply to your circumstances after completion. Non resident owners can have Spanish filing obligations even when the property is not rented, while rental activity creates additional tax and regulatory considerations.

Hayes Homes does not provide personal tax or inheritance advice. Its role is to help with the property side of the transaction and connect international buyers with appropriate independent professionals where required.

This distinction is part of the firm's wider approach. Hayes Homes also explains in its guidance for overseas owners that legal and fiscal matters should be handled by the owner's appointed professional while Hayes Homes coordinates the estate agency side.

Before deciding how to purchase and hold your Costa del Sol property, get the ownership and tax questions answered rather than trying to restructure everything afterwards.

Call +34 951 870 210 or contact Hayes Homes to discuss your property search and ask about introductions to suitable independent advisers.

Frequently Asked Questions

Do I need an NIE to buy a property on the Costa del Sol?

A foreign buyer will need an NIE for important financial, tax and administrative stages of the Spanish property purchase. Because obtaining one can take time, discuss the requirement with your lawyer early rather than leaving it until completion is approaching.

What is the current general ITP rate in Andalucía?

The current general Property Transfer Tax rate for relevant resale property transfers in Andalucía is 7%. Reduced rates can apply in specific qualifying circumstances, so your independent adviser should confirm the rate for your transaction.

How much extra should I budget above the asking price?

Hayes Homes currently advises buyers to think in terms of the complete acquisition budget rather than a fixed percentage alone. Its current buyer guidance commonly uses approximately 10% to 12% above the property price as a broad planning range, depending on whether the property is resale or new, professional costs and the individual transaction.

The real Hayes Homes example near La Cala demonstrates why this matters. The British couple involved required almost €30,000 more than they originally expected.

Can Hayes Homes recommend a lawyer?

Hayes Homes states that it can introduce international buyers to trusted lawyers and financial professionals. The lawyer should remain independent and should be appointed by the buyer.

Where should I start searching?

If you want to stay close to the Hayes Homes office and its core local market, start with current La Cala properties and Mijas properties.

Buyers considering a larger international market can also browse Marbella properties for sale.

How Hayes Homes Helps Buyers Avoid These Pitfalls

The seven risks above are not solved by simply showing a buyer more listings.

The value of a locally based agency comes from helping the buyer narrow the search, understand what needs to be checked and bring the right independent professionals into the process at the right time.

Hayes Homes provides several checkable forms of buyer support:

• Local experience since 2007: the agency is based in La Cala de Mijas and focuses on the Costa del Sol.
• Real buyer cost guidance: Hayes Homes has published the British couple example showing an almost €30,000 budget shortfall.
• Cost disclosures on current properties: selected live listings publish estimated taxes, notary costs, Land Registry costs or total acquisition figures.
• Independent professional introductions: overseas buyers can be connected with trusted lawyers and financial professionals.
• Currency support: Hayes Homes has a dedicated Moneycorp service for international transfers and currency planning.
• First hand local property knowledge: Greig Hayes personally presents developments including Tree Villas at La Cala Golf.
• Transactional inventory: buyers can search hundreds of live homes across Mijas, La Cala and Marbella.

That is much more useful than treating every purchase as the same generic Spanish property transaction.

Take the Risk Out of Your Costa del Sol Property Search

The biggest property buying mistakes usually happen before completion, when a buyer commits too quickly, misunderstands the total budget or assumes somebody else has checked an important detail.

Before reserving a property, make sure you understand:

• The complete amount required to buy it.
• Who is carrying out your independent legal checks.
• Whether the physical property matches its documentation.
• The current community and IBI costs.
• Whether a technical inspection is appropriate.
• How currency or financing will be handled.
• What ownership and tax advice you need before completion.

Hayes Homes can help you build a property shortlist around those realities rather than simply around an asking price.

Call the La Cala de Mijas office on +34 951 870 210, request a call from the Hayes Homes team, or start by browsing current Costa del Sol properties for sale.